{"id":"nsw:act-1966-039","name":"Financial Agreement (Decimal Currency) Act 1966","slug":"financial-agreement-decimal-currency-act-1966","collection":"act","jurisdiction":"nsw","status":"in_force","isInForce":true,"actNumber":"39 of 1966","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":110938,"registerId":"nsw-act-1966-039-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name of Act and commencement","content":"#### 1 Name of Act and commencement\n\n1 Name of Act and commencement\n\n> > (1) This Act may be cited as the [Financial Agreement (Decimal Currency) Act 1966](/view/html/inforce/current/act-1966-039).\n> \n> > (2) This Act shall commence upon a day to be appointed by the Governor and notified by proclamation published in the Gazette.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Approval of Agreement","content":"#### 2 Approval of Agreement\n\n2 Approval of Agreement\n\n> The Agreement made on the eleventh day of February, one thousand nine hundred and sixty-six, a copy of which is set forth in the Schedule, is approved.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":null,"content":"#### 3\n\n3 (Repealed)","sortOrder":2},{"sectionNumber":"sch","sectionType":"schedule","heading":"“DECIMAL CURRENCY.","content":"# sch “DECIMAL CURRENCY.\n\nThe Schedule\n\nAGREEMENT made the eleventh day of February One thousand nine hundred and sixty-six BETWEEN THE COMMONWEALTH OF AUSTRALIA (in this Agreement called “the Commonwealth”) of the first part, THE STATE OF NEW SOUTH WALES of the second part, THE STATE OF VICTORIA of the third part, THE STATE OF QUEENSLAND of the fourth part, THE STATE OF SOUTH AUSTRALIA of the fifth part, THE STATE OF WESTERN AUSTRALIA of the sixth part and THE STATE OF TASMANIA of the seventh part, each of the parties of the second, third, fourth, fifth, sixth and seventh parts being in this Agreement referred to as a “State” and the expression “the States” in this Agreement meaning, where the context so permits or requires, all of those parties.\n\nWHEREAS an Agreement was made on the twelfth day of December, One thousand nine hundred and twenty-seven, between the parties to this Agreement with respect to the public debts of the States:\n\nAND WHEREAS that Agreement has been varied by the following Agreements made pursuant to section 105A of the [Constitution of the Commonwealth](http://www.legislation.gov.au/) between the parties to this Agreement, namely, an Agreement made the third day of July, One thousand nine hundred and thirty-four, a copy of which is set forth in the Schedule to the [Soldier Settlement Loans (Financial Agreement) Act 1935](http://www.legislation.gov.au/) of the Commonwealth, and an Agreement made the fifteenth day of November, One thousand nine hundred and forty-four, a copy of which is set forth in the Schedule to the [Financial Agreement Act 1944](/view/html/inforce/current/act-1944-029), which Agreements are in this Agreement referred to as “the amending Agreements”:\n\nAND WHEREAS the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth provides for the introduction of a system of currency in which the denominations of moneys are to be the dollar and the cent:\n\nNOW IT IS HEREBY AGREED as follows:\n\n> 1.\n> \n> This Agreement shall come into force on the fourteenth day of February, One thousand nine hundred and sixty-six, being the date on which section 8 of the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth is to come into operation.\n\n> 2.\n> \n> In this Agreement, “the Financial Agreement” means the Agreement made on the twelfth day of December, One thousand nine hundred and twenty-seven, between the parties to this Agreement, as varied by the amending Agreements.\n\n> 3.\n> \n> The Financial Agreement is amended as set out in the Schedule to this Agreement.\n\n> 4.\n> \n> The Financial Agreement is further amended by adding after clause 17 the following clause:\n> \n> > “DECIMAL CURRENCY.\n> > \n> > > “18.—\n> > > \n> > > > (1.)\n> > > > \n> > > > A reference to an amount of money stated in this Agreement in the currency provided for by the [Coinage Act 1909–1947](http://www.legislation.gov.au/) of the Commonwealth that is immediately followed in parenthesis by a reference to an amount of money in the currency provided for by the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth shall, for the purposes of the operation of this Agreement on and after 14th February 1966, be read as a reference to the amount of money stated in the currency provided for by the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth immediately so following.\n> > > \n> > > > “(2.)\n> > > > \n> > > > In relation to the references in sub-clauses (5.) and (6.) of clause 12 of this Agreement to ‘£100 ($200)’, sub-clause (1.) of this clause applies only in relation to new loans raised by a State or by the Commonwealth for and on behalf of a State on or after 14th February 1966.\n> > > \n> > > > “ (3.)\n> > > > \n> > > > For the purposes of the operation of sub-clause (10.) of clause 3 and sub-clause (21.) of clause 12 of this Agreement on and after 14th February 1966, the equivalent in the currency provided for by the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth of One pound in the currency provided for by the [Coinage Act 1909–1947](http://www.legislation.gov.au/) of the Commonwealth is Two dollars, the like equivalent of One shilling is Ten cents and the like equivalent of One penny is Five-sixths of a cent.\n> > > \n> > > > “(4.)\n> > > > \n> > > > A reference in this clause to the [Currency Act 1965](http://www.legislation.gov.au/) of the Commonwealth includes a reference to that Act as amended by any other Act of the Parliament of the Commonwealth.”.\n\n**THE SCHEDULE**\n\n(Clause 3)\n\nAMENDMENTS OF THE FINANCIAL AGREEMENT CONSEQUENTIAL ON THE INTRODUCTION OF DECIMAL CURRENCY\n\n| Provision Amended | Amendment |\n| Clause 11 | Omit from sub-clause (2)— |\n|  | “£2,917,411 |  |\n|  | 2,127,159 |  |\n|  | 1,096,235 |  |\n|  | 703,816 |  |\n|  | 473,432 |  |\n|  | 266,859 |  |\n|  | £7,584,912”, |  |\n|  | insert— |  |\n|  | “£2,917,411 | ($5,834,822) |\n|  | 2,127,159 | ( 4,254,318) |\n|  | 1,096,235 | ( 2,192,470) |\n|  | 703,816 | ( 1,407,632) |\n|  | 473,432 | ( 946,864) |\n|  | 266,859 | ( 533,718) |\n|  | £7,584,912 | ($15,169,824)”. |\n| Clause 12 | Omit from sub-clause (1.) “7s. 6d.”, insert “7s. 6d. (75 cents)”.Omit from sub-clause (2.) “2s. 6d.” and “5s.” (wherever occurring), insert “2s. 6d. (25 cents)” and “5s. (50 cents)”, respectively.Omit from sub-clause (3.) “7s. 6d.” (wherever occurring), insert “7s. 6d. (75 cents)”.Omit from sub-clause (5.) “10s.” and “£100”, insert “10s. ($1.00)” and “£100 ($200)”, respectively.Omit from sub-clause (6.) “5s.” and “£100”, insert “5s. (50 cents)” and “£100 ($200)”, respectively.Omit from paragraph (c) of sub-clause (11.) “5s.” and “15s.”, insert “5s. (50 cents)” and “15s. ($1.50)”, respectively. |\n\nIN WITNESS whereof the Prime Minister of the Commonwealth of Australia and the Premier of each of the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania have signed this Agreement respectively for and on behalf of the Commonwealth of Australia and of the said States.\n\n| SIGNED by the Prime Minister of the Commonwealth of Australia for and on behalf of the said Commonwealth in the presence of—F. W. JENNINGS | } | HAROLD HOLT |\n| SIGNED by the Premier of the State of New South Wales for and on behalf of the said State in the presence of—A. OLIVER | } | R. W. ASKIN |\n| SIGNED by the Premier of the State of Victoria for and on behalf of the said State in the presence of—E. W. COATES | } | HENRY E. BOLTE |\n| SIGNED by the Premier of the State of Queensland for and on behalf of the said State in the presence of—J. A. SEWELL | } | GORDON W. CHALK,Acting Premier |\n| SIGNED by the Premier of the State of South Australia for and on behalf of the said State in the presence of—G. F. SEAMAN | } | FRANK WALSH |\n| SIGNED by the Premier of the State of Western Australia for and on behalf of the said State in the presence of—P. N. THORNBER | } | DAVID BRAND |\n| SIGNED by the Premier of the State of Tasmania for and on behalf of the said State in the presence of—K. J. BINNS | } | ERIC REECE |","sortOrder":4}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act did not broaden the Financial Agreement’s subject‑matter; it performs a narrowly confined, consequential task: converting and re‑expressing monetary figures in that Agreement to align with the new decimal currency. It does not add new substantive powers, obligations beyond re‑expression, or new policy areas. The scope remains limited to ensuring the Financial Agreement operates on the decimal currency basis."},"complexity_factors":["Very short statute: three numbered sections plus a Schedule containing the substantive Agreement and amendments","Single substantive insertion: new clause 18 with four subclauses (Schedule, clause 4)","A small number of targeted textual amendments to existing clauses (Schedule table: clauses 11 and 12)","Cross-references to other Commonwealth Acts (Currency Act 1965; Coinage Act 1909–1947) and to the earlier Financial Agreement (1927) and its amending agreements","One conditional limitation (clause 18(2)) applying conversion for ‘£100 ($200)’ only to new loans — a specific, localized exception","Inclusion of fractional-cent equivalence (1 penny = 5/6 cent) which raises practical rounding/implementation considerations","Repealed s 3 noted (Rep 1999 No 85, Sch 4) but no remaining multi-layered exemptions or nested exceptions"],"plain_english_summary":"**What this law does, mechanically**\n\n- This short Act (Financial Agreement (Decimal Currency) Act 1966) formally approves an intergovernmental agreement between the Commonwealth and the States that changes how sums in an older Financial Agreement are to be read after Australia moved to decimal currency. (See s 2 and the Schedule.)\n- It inserts a new clause (called “DECIMAL CURRENCY” / clause 18 in the Schedule) into the Financial Agreement so that, on and after 14 February 1966, amounts shown in the old currency (pounds, shillings, pence) that are immediately followed in parentheses by dollar amounts are to be read as the dollar amounts. (Schedule, clause 4(1).)\n- It sets specific conversion equivalents for legal operation of certain clauses: 1 pound = $2, 1 shilling = 10 cents, 1 penny = 5/6 of a cent. Those equivalents apply for the operation of specified clauses after 14 February 1966. (Schedule, clause 4(3).)\n- It amends particular numeric entries in the Financial Agreement (notably clauses 11 and 12) to show dollar equivalents in parentheses next to the old pound amounts. The Schedule contains the exact edits (replacement of listed sums and the insertion of parenthetical dollar equivalents).\n- One targeted limitation: references to “£100 ($200)” in two locations are treated as applying to new loans raised by a State or by the Commonwealth for and on behalf of a State on or after 14 February 1966 only. (Schedule, clause 4(2).)\n\n**Who it affects**\n\n- Directly: the Commonwealth and the State governments party to the Financial Agreement — it changes how their intergovernmental financial obligations and numeric thresholds in that Agreement are to be read and applied after decimalisation.\n- Indirectly: parties whose legal or financial rights depend on the Financial Agreement (for example, creditors or administrators acting under the Agreement) because payable or threshold amounts are expressed in dollar terms after the change.\n- Not affected: general private contracts or legislation that are not governed by that Financial Agreement. This Act does not create new taxes or new powers for agencies.\n\n**Why it matters (official purpose and how it achieves it)**\n\n- Officially, the Act implements the transition to decimal currency (the Currency Act 1965 created the dollar and cent). The Act makes the Financial Agreement’s monetary references compatible with the new system so that the Agreement continues to operate without re-negotiating numeric terms.\n- Mechanically, it does that by (a) placing dollar equivalents beside old amounts in the Financial Agreement and (b) prescribing conversion rules and specific equivalences to determine legal effect after the switch to decimal currency.\n\n**Practical consequences, trade‑offs and implementation issues**\n\n- Who pays / who benefits: The monetary obligations themselves do not change in economic substance because the Act fixes dollar equivalents to the old sums. The States and the Commonwealth remain the payers/recipients under the Financial Agreement; amounts are simply re-expressed in dollars. (Schedule, amendments and clause 18.)\n- Behavioural change required: officials administering the Financial Agreement must use the dollar figures (where provided) for transactions and new loans after 14 February 1966, and follow the limited rule that certain £100 references convert only for new loans. (Schedule, clause 4(1)–(3).)\n- Transactional/rounding practicalities: the conversion produces fractional cents for a penny (5/6 of a cent). The Act does not set rounding rules for cash handling; practical rounding/handling would be determined by broader currency rules (e.g. the Currency Act 1965 and implementation practices). That is an implementation risk for cash or small-value accounting unless addressed elsewhere. (Schedule, clause 4(3).)\n- Legal clarity and certainty: by embedding parenthetical dollar amounts and fixed conversion rates, the Act reduces uncertainty about how the Financial Agreement should be read after decimalisation. The limited exception for the specific £100 references (applying only to new loans) is a conditional rule administrators must observe. (Schedule, clause 4(2).)\n- Compliance and administrative burden: low. The changes are textual and discrete (amending clauses and inserting parenthetical dollar figures). Administrators must update documents, accounting, and loan documentation to the new expressions.\n- Effects on private enterprise and markets: minimal and indirect. The Act deals with intergovernmental monetary wording and loan-raising practices by States and the Commonwealth; it does not change competitive settings, taxes, regulation of businesses, private contract freedom outside the Financial Agreement, or ownership. Any market effect would be through government borrowing denominated in a different unit of account, but the Act fixes equivalence so there is no economic discontinuity embedded in these provisions themselves.\n- Concentrated benefits / costs and rent-seeking: the Act is a consequential technical amendment to adapt existing intergovernmental commitments to a new unit of account. It does not create new subsidies, privileges, or regulatory barriers; it therefore does not create obvious concentrated rent opportunities within the text of the Act itself. Monitoring is limited to correct application of conversion rules.\n- Discretion and delegation: the changes are prescriptive; there is little new discretion for officials in interpreting amounts (the Act tells them which figures to use). The one administrative decision in the Act is the formal commencement mechanism in s 1(2) (a Governor may appoint the commencement day), though the Schedule explicitly sets 14 February 1966 as the operative date for the Agreement’s provisions.\n\n**Relevant sections and mechanics cited**\n- s 1: Act name and commencement mechanism (Governor may appoint commencement day).\n- s 2: approval of the Agreement and incorporation of the Schedule.\n- Schedule, clause 1: states the Agreement comes into force on 14 February 1966.\n- Schedule, clause 4(1)–(4): inserts the new clause 18 into the Financial Agreement prescribing reading rules and conversion equivalents; clause 4(2) limits application of certain conversions to new loans; clause 4(3) sets the pound/shilling/penny equivalences; clause 4(4) confirms references include future amendments to the Currency Act.\n- Schedule (table): specific edits to clauses 11 and 12 replacing and adding parenthetical dollar equivalents.\n\nOverall, the Act is a narrow, technical instrument that replaces and fixes numeric monetary expressions in an existing intergovernmental Financial Agreement to align it with Australia’s decimal currency system. It instructs administrators which figures to use after the conversion, fixes conversion equivalents, and makes a limited, explicit carve‑out for one £100 reference that applies only to new loans.\n"},"issue_detection":{"absurdities":[],"contradictions":[]},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"The legislation maintains its original narrow purpose: facilitating the decimal currency conversion for the 1927 Financial Agreement. It has not expanded beyond this specific technical amendment."},"complexity_factors":["Very short statute (only 2 operative sections, with section 3 repealed)","Single purpose: approving one specific agreement with a defined schedule of amendments","No defined terms section in the Act itself (definitions are in the scheduled agreement)","Minimal cross-referencing (only to the Currency Act 1965 and the 1927 Financial Agreement)","Straightforward tabular amendments in the Schedule showing old amounts and new equivalents","No conditional logic or nested exceptions in the Act proper"],"plain_english_summary":"This Act approves a 1966 agreement between the Australian federal government and all six states to update the 1927 Financial Agreement for Australia's switch from pounds, shillings and pence to decimal currency (dollars and cents) on 14 February 1966.\n\n**What it does:**\n- **Approves the agreement** made on 11 February 1966 between the Commonwealth and the States (NSW, Victoria, Queensland, SA, WA and Tasmania).\n- **Updates money references** throughout the 1927 Financial Agreement by adding dollar equivalents in brackets next to the old pound amounts. For example, \"£100\" becomes \"£100 ($200)\", and \"7s. 6d.\" becomes \"7s. 6d. (75 cents)\".\n- **Sets conversion rates**: £1 = $2, 1 shilling = 10 cents, 1 penny = 5/6 of a cent.\n- **Adds a new clause** to the 1927 Agreement explaining that when you see an amount with both currencies listed, you use the dollar amount from 14 February 1966 onwards.\n\n**Who it affects:**\n- The Commonwealth government and state governments, specifically regarding how they manage and repay public debts that were originally set up under the 1927 Financial Agreement.\n\n**Why it matters:**\nThis was a necessary technical update to ensure that financial obligations between the federal and state governments continued smoothly when Australia changed its entire currency system. Without this, there would have been legal confusion about whether debts and payments should be made in the old money or the new decimal currency."},"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"The Act appears to have remained true to its original intent: a narrow, technical instrument to facilitate the conversion of existing NSW financial agreements from imperial currency (pounds, shillings, pence) to decimal currency (dollars and cents) at the time of Australia's currency changeover in 1966. There is no indication of scope creep or significant amendment over time."},"complexity_factors":["Narrow, single-purpose legislation addressing a one-off historical event","No substantive content is visible in the provided text beyond metadata and status information, limiting full analysis","The underlying conversion mechanics (pound-to-dollar ratios) could involve minor arithmetic rules, but these are well-established and non-controversial","Interaction with Commonwealth decimal currency legislation adds a small layer of jurisdictional consideration"],"plain_english_summary":"This short NSW Act provided a legal mechanism to convert existing financial agreements written in pounds into the new decimal currency (dollars and cents) when Australia switched on 14 February 1966. It ensured contracts, loans and payment obligations remained valid after the change. Technically still on the register, it’s effectively an obsolete relic with no practical impact today."}},"importantCases":[],"_links":{"self":"/api/acts/financial-agreement-decimal-currency-act-1966","history":"/api/acts/financial-agreement-decimal-currency-act-1966/history","analysis":"/api/acts/financial-agreement-decimal-currency-act-1966/analysis","conflicts":"/api/acts/financial-agreement-decimal-currency-act-1966/conflicts","importantCases":"/api/acts/financial-agreement-decimal-currency-act-1966/important-cases","documents":"/api/acts/financial-agreement-decimal-currency-act-1966/documents"}}