{"id":"C1962A00079","name":"Loan Act (No. 2) 1962","slug":"loan-act-no-2-1962","collection":"act","jurisdiction":"commonwealth","status":"repealed","isInForce":false,"actNumber":"79 of 1962","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":5056,"registerId":"commonwealth-C1962A00079-current","compilationNumber":null,"startDate":"2026-03-30","status":"Repealed","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Loan Act (No. 2) 1962","content":"LOAN (No. 2).\n\nNo. 79 of 1962.\n\nAn Act to Authorize the Raising and Expending of a sum not exceeding One hundred and eighteen million three hundred and twenty-eight thousand pounds for Defence Purposes.\n\n\\[Assented to 12th December, 1962.\\]\n\nBE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—\n\nShort title.\n\n1. This Act may be cited as the Loan Act (No. 2) 1962.\n\nCommencement.\n\n2. This Act shall come into operation on the day on which it receives the Royal Assent.\n\nAuthority to borrow £118,328,000.\n\n3. The Treasurer may, during the year that commenced on the first day of July, One thousand nine hundred and sixty-two, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911-1946, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole One hundred and eighteen million three hundred and twenty-eight thousand pounds.\n\n  \n\nPurposes for which moneys borrowed may be applied.\n\n4. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and—\n\n(a) as to a sum not exceeding Ninety-eight million two hundred and eighty-three thousand pounds—for the purposes and services expressed in Part I. of the Second Schedule to the Appropriation Act 1962-63 under the heading “XX.—DEFENCE SERVICES.”; and\n\n(b) as to a sum not exceeding Twenty million and forty-five thousand pounds—for the purpose of paying off, repurchasing or redeeming Commonwealth securities issued for war purposes.\n\nLimitation of expenditure.\n\n5.—(1.) Nothing in the preceding provisions of this Act or in the Appropriation Act 1962-63 shall be taken to authorize the expenditure for a purpose or service expressed in Part I. of the Second Schedule to the Appropriation Act 1962-63 under the heading “XX.—DEFENCE SERVICES.” of an amount the expenditure of which would result in the total expenditure under the two Acts for that purpose or service exceeding the amount specified in that Part in respect of that purpose or service.\n\n(2.) The last preceding sub-section does not affect the expenditure of the moneys appropriated by the Appropriation Act 1962-63 under the head “Advance to the Treasurer”.\n\n(3.) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after the thirtieth day of June, One thousand nine hundred and sixty-three.","sortOrder":0}],"analysis":{"summary":{"complexity_score":2,"scope_assessment":{"changed":false,"description":"This Act does exactly what its title and long title promise — no more, no less. It authorises a specific borrowing amount for a specific financial year for two clearly defined purposes (defence services and war debt repayment). There is no evidence of scope creep or expansion beyond the original intent. It is a time-limited, single-purpose instrument that expired automatically on 30 June 1963."},"complexity_factors":["Very short — only 5 operative sections","Narrow, single-purpose scope (defence borrowing for one financial year)","Minimal defined terms — no interpretation section at all","Cross-references to only two external Acts (Commonwealth Inscribed Stock Act 1911-1946 and Appropriation Act 1962-63)","One instance of conditional logic in section 5 (expenditure cap with a carve-out for the Advance to the Treasurer)","Fixed monetary caps and a hard expiry date (30 June 1963) reduce interpretive ambiguity","Pre-decimal currency (pounds) adds minor complexity for modern readers but was standard at the time"],"plain_english_summary":"This Act authorised the Treasurer to borrow up to £118,328,000 in the 1962–63 year (via Commonwealth inscribed stock or Treasury bills) to fund Defence Services and to retire specified war-era Commonwealth securities, with a small allowance for borrowing costs. It could not increase defence spending beyond amounts already appropriated and all proceeds had to be spent by 30 June 1963. It mainly affected the Treasurer, Defence departments and Treasury as a mechanism to finance defence commitments."},"issue_detection":{"absurdities":[{"type":"retroactive_impossibility","section":"3","severity":"medium","reasoning":"While the borrowing window technically still has six months remaining (January–June 1963), any borrowings the Treasurer may have needed to make or actually made between 1 July 1962 and 11 December 1962 were done without statutory authority under this Act. The Act cannot retrospectively authorise those earlier actions (absent explicit retrospective language, which is absent here), yet the entire framing of the section speaks to a unified financial year as though the authority covers the full period. This creates a legal gap: expenditure incurred before 12 December 1962 under the assumption this Act would pass may have lacked proper authorisation.","confidence":0.82,"description":"Section 3 grants the Treasurer authority to borrow during a financial year that had already commenced five months before Royal Assent — but the borrowing power is expressly confined to 'the year that commenced on the first day of July, One thousand nine hundred and sixty-two.' The Act received Royal Assent on 12 December 1962, meaning roughly half the authorised borrowing window (July–December 1962) had already elapsed before the power to borrow was legally conferred."},{"type":"self_contradicting","section":"4","severity":"medium","reasoning":"Section 4 states that borrowed moneys shall be applied 'for the expenses of borrowing and — (a) ... not exceeding £98,283,000 ... (b) ... not exceeding £20,045,000.' The sum of (a) and (b) is exactly £118,328,000 — the total ceiling in section 3. If every pound of borrowing authority is allocated between (a) and (b), there is mathematically no room to also cover the expenses of borrowing out of the same pool without breaching one of the sub-ceilings or the overall ceiling. The drafting implies the expenses of borrowing are an additional permitted use, but no additional monetary headroom is provided for them.","confidence":0.88,"description":"The sub-limits in sections 4(a) and 4(b) sum to exactly the total authorised borrowing amount in section 3, leaving zero headroom for the 'expenses of borrowing' which are listed as a permitted use of the borrowed moneys ahead of, and separate from, those sub-limits."},{"type":"impossible_compliance","section":"5(3)","severity":"low","reasoning":"The Commonwealth securities targeted by section 4(b) were issued for war purposes and would have their own contractual or statutory redemption schedules. If any such security had a redemption date falling after 30 June 1963, the funds borrowed under section 4(b) for that purpose could not lawfully be applied to it under this Act, rendering that portion of the borrowing authority potentially unusable for its stated purpose within the permitted timeframe.","confidence":0.65,"description":"Section 5(3) prohibits expenditure after 30 June 1963 (other than borrowing expenses), yet section 4(b) authorises use of funds to pay off, repurchase or redeem Commonwealth securities issued for war purposes. Debt redemption transactions may not always be schedulable or completable before that hard deadline, particularly where redemption dates are fixed by the terms of the securities themselves."}],"contradictions":[{"severity":"low","section_a":"3","section_b":"5(3)","confidence":0.72,"description":"Section 3 frames the borrowing authority by reference to 'the year that commenced on the first day of July, One thousand nine hundred and sixty-two' — a full financial year — implying the borrowed funds relate to and support that entire year. Section 5(3), however, cuts off any expenditure (other than borrowing expenses) after 30 June 1963. Because the Act only commenced on 12 December 1962, the effective window for both borrowing and spending is substantially shorter than the financial year invoked in section 3, creating a mismatch between the year-long framing and the operationally compressed timeframe."},{"severity":"medium","section_a":"4","section_b":"5(1)","confidence":0.85,"description":"Section 4 grants a freestanding authority to issue and apply borrowed moneys up to the sub-limits in (a) and (b). Section 5(1) then imposes a combined cap across both this Act and the Appropriation Act 1962-63, such that total expenditure on any Defence Services line item cannot exceed the amount specified in that Act. This means the section 4(a) authority of up to £98,283,000 is not a genuine standalone authorisation — it is silently subordinated to and potentially drastically reduced by the Appropriation Act caps, which are not reproduced or referenced in section 4 itself. A reader of section 4 alone would believe they have authority up to £98,283,000 per line item; section 5(1) contradicts that reading."}]}},"importantCases":[],"_links":{"self":"/api/acts/loan-act-no-2-1962","history":"/api/acts/loan-act-no-2-1962/history","analysis":"/api/acts/loan-act-no-2-1962/analysis","conflicts":"/api/acts/loan-act-no-2-1962/conflicts","importantCases":"/api/acts/loan-act-no-2-1962/important-cases","documents":"/api/acts/loan-act-no-2-1962/documents"}}