{"id":"C2004A03153","name":"Qantas Airways Limited (Loan Guarantee) Act 1985","slug":"qantas-airways-limited-loan-guarantee-act-1985","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"114 of 1985","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":7184,"registerId":"commonwealth-C2004A03153-current","compilationNumber":null,"startDate":"2026-03-30","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Qantas Airways Limited (Loan Guarantee) Act 1985","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\n \n\n \n\n \n\n \n\n \n\n \n\nQantas Airways Limited (Loan Guarantee) Act 1985\n\n \n\nNo. 114 of 1985\n\n \n\n \n\n \n\n \n\n \n\nAn Act relating to the provision of certain equipment for Qantas Airways Limited\n\n \n\n \n\n \n\nContents\n\n[1 Short title](#_Toc425774643)\n\n[2 Commencement](#_Toc425774644)\n\n[3 Provision of credit deemed to be a borrowing](#_Toc425774645)\n\n[4 Guarantee of certain loans](#_Toc425774646)\n\n[5 Conditions of guarantees](#_Toc425774647)\n\n[6 Delegation](#_Toc425774648)\n\n \n\n![](image.001.png)\n\n \n\n \n\nQantas Airways Limited (Loan Guarantee) Act 1985\n\nNo. 114 of 1985\n\n \n\n \n\n \n\nAn Act relating to the provision of certain equipment for Qantas Airways Limited\n\n[Assented to 21 October 1985]\n\nThe Parliament of Australia enacts:\n\n##### 1  Short title\n\n  This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1985.\n\n##### 2  Commencement\n\n  This Act shall come into operation on the day on which it receives the Royal Assent.\n\n##### 3  Provision of credit deemed to be a borrowing\n\n  For the purposes of this Act, the provision of credit shall be deemed to be a borrowing to the extent of the amount of that credit.\n\n##### 4  Guarantee of certain loans\n\n (1) The Treasurer may, on behalf of the Commonwealth, and subject to the conditions required by this Act, guarantee:\n\n (a) the repayment by Qantas Airways Limited of amounts borrowed by it not exceeding in the aggregate the sum of the expenditure that the Treasurer is satisfied:\n\n (i) will be, or has been, incurred in connection with the purchase by it of a Boeing 747-300 Extended Upper Deck aircraft and related spare parts and equipment; and\n\n (ii) will be, or has been, met out of money owned or borrowed by it; and\n\n (b) the payment of interest (including any interest on that interest) on amounts so borrowed.\n\n (2) A guarantee or guarantees shall not be given under subsection (1) in respect of moneys borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $115,000,000 in the currency of the United States of America.\n\n (3) The power of the Treasurer to give a guarantee under this section includes:\n\n (a) a power to agree, on behalf of the Commonwealth, that proceedings under the guarantee may be taken in a court of a country other than Australia; and\n\n (b) a power to waive, on behalf of the Commonwealth, the immunity of the Commonwealth from suit in a court of a country other than Australia in relation to any proceedings that may be taken under the guarantee in such a court.\n\n (4) For the purposes of subsection (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first-mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.\n\n##### 5  Conditions of guarantees\n\n  For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:\n\n (a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;\n\n (b) appropriate security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over property of Qantas Airways Limited, being property 85% of the value of the interest of Qantas Airways Limited in which, immediately before the giving of security to the Commonwealth, equals or exceeds the amount borrowed;\n\n (c) undertakings to the satisfaction of the Treasurer are given that the property of Qantas Airways Limited over which security is, or is to be, taken in accordance with paragraph (b):\n\n (i) will be insured and kept insured against all risks against which it is customary to insure and to the full insurable value of that property; and\n\n (ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and\n\n (d) such other conditions as the Treasurer thinks necessary are fulfilled.\n\n##### 6  Delegation\n\n (1) The Treasurer may, either generally or as otherwise provided by the instrument of delegation, by writing, delegate to another Minister or to an officer of the Department of the Treasury all or any of the powers or functions of the Treasurer under this Act, other than this power of delegation.\n\n (2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed by the Treasurer.\n\n (3) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.\n\n (4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Treasurer.\n\n \n\n \n\n \n\n \n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"The Act’s scope is confined to guaranteeing loans for Qantas’s purchase of a Boeing 747-300 and related equipment up to a specified US dollar aggregate, with conditions to protect Commonwealth financial interests. It does not broaden guarantees beyond the specified purpose or alter that specified limit."},"complexity_factors":["Narrow, transaction-specific scope (single aircraft type and related equipment) reduces overall complexity","Aggregate foreign-currency limit (US$115,000,000) and requirement to convert other currencies via the Reserve Bank introduce exchange-rate technicality","Treasurer’s discretionary standards of satisfaction for reasonableness of terms and other conditions create judgement-dependent outcomes","Security requirement that 85% of the value of the interest equals or exceeds the amount borrowed imposes a specific valuation threshold","Conditions requiring insurance and prohibition of prior-ranking charges impose enforceable operational covenants on Qantas","Power to permit foreign-court proceedings and to waive Commonwealth immunity raises cross-border legal and enforcement considerations","Delegation power allows the Treasurer to transfer decision-making to other ministers or Treasury officers, concentrating practical discretion"],"plain_english_summary":"This Act authorises the Commonwealth, acting through the Treasurer, to guarantee loans taken by Qantas Airways Limited for the purchase of a Boeing 747-300 and related spare parts and equipment, subject to an aggregate limit of US$115,000,000 and conditions on security, insurance and reasonable loan terms. It affects Qantas (the borrower), the lenders (as beneficiaries of the guarantee) and the Commonwealth (as guarantor), and matters because it commits public credit to support a specified commercial aircraft financing subject to safeguards."},"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"},"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This legislation remains tightly focused on its original purpose: facilitating the purchase of a specific aircraft (Boeing 747-300) by Qantas in 1985 with a defined financial cap. There is no evidence of scope creep; the Act contains no regulation-making powers, no sunset clause extensions, and no broadening amendments. It is a time-bound, transaction-specific statute."},"complexity_factors":["Only 6 short sections totaling approximately 500 words","No defined terms section; ordinary meanings apply throughout","Minimal cross-referencing (only internal references to other sections of this Act)","Simple conditional structure: basic 'if-then' requirements in section 5 without nested exceptions","Single purpose legislation with clear monetary cap (US$115 million) and specific asset description (Boeing 747-300)","Standard delegation provisions (section 6) using boilerplate language common across Commonwealth legislation"],"plain_english_summary":"**What this law does:**\n\nThis Act allows the Australian Government (specifically the Treasurer) to **guarantee loans** taken out by Qantas Airways Limited in 1985. Think of a guarantee as a promise by the government to pay back the money if Qantas can't.\n\n**Why it exists:**\n\nQantas wanted to buy a specific aircraft — a **Boeing 747-300 Extended Upper Deck** — plus spare parts and equipment. These were expensive purchases, and having the Australian Government guarantee the loans made it easier and cheaper for Qantas to borrow money from banks or other lenders.\n\n**Key limits and protections:**\n\n*   **Cap:** The government won't guarantee more than **US$115 million** worth of borrowing.\n*   **Specific purpose:** The guarantee only covers money spent on that particular Boeing aircraft and related equipment.\n*   **Security required:** Qantas had to put up property as collateral (security) worth at least 85% of the loan amount.\n*   **Insurance:** Qantas had to keep the aircraft fully insured.\n*   **No selling:** Qantas couldn't sell the aircraft or let other lenders take priority over the government's security interest.\n*   **Reasonable terms:** The Treasurer had to be satisfied the loan terms were fair.\n\n**Who it affects:**\n\nPrimarily **Qantas Airways Limited** and the **Australian Government** (taxpayers, indirectly). It also affects any banks or lenders who loaned money to Qantas with this government backing.\n\n**Why it matters:**\n\nThis is a classic example of how governments support their \"flag carrier\" airlines. By guaranteeing the loan, the government helped Qantas modernise its fleet with a major capital purchase, while putting safeguards in place to protect public money. The Act also gives the Treasurer flexibility to let foreign courts handle any disputes (useful when borrowing internationally) and allows delegation of these powers to other ministers or Treasury officials."}},"importantCases":[],"_links":{"self":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985","history":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985/history","analysis":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985/analysis","conflicts":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985/conflicts","importantCases":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985/important-cases","documents":"/api/acts/qantas-airways-limited-loan-guarantee-act-1985/documents"}}