1Commonwealth Debt Conversion Act 1931

COMMONWEALTH DEBT CONVERSION.

No. 18 of 1931.

An Act to provide for the Conversion of the Internal Public Debts of the Commonwealth and the States, and for other purposes.

[Assented to 6th August, 1931.]

Preamble.

WHEREAS at a Conference between Ministers of the Commonwealth and Ministers of the States, convened in Melbourne on the twenty-fifth day of May One thousand nine hundred and thirty-one, to devise measures for meeting the grave financial emergency existing in Australia and thereby averting disastrous consequences, a plan was agreed upon for re-establishing the financial stability of the Commonwealth and restoring industrial and general prosperity by means involving a common sacrifice, including amongst other things the conversion of the public debts of the Commonwealth and the States on the basis of a reduction of the interest payable:

And Whereas an agreement has been made between the Commonwealth and the States with respect to the said Conversion:

Be it therefore enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title.

1. This Act may be cited as the Commonwealth Debt Conversion Act 1931.

Commencement.

2. This Act shall commence on a date to be fixed by Proclamation.

Definitions.

3. In this Act, unless the contrary intention appears—

“existing securities” means securities issued by a State, liability for which has been assumed by the Commonwealth under the Financial Agreement, and the interest on and principal of, which are payable in Australia, and securities issued by the Commonwealth the interest, on, and principal of, which are payable in Australia, but does not include War Savings Certificates and Peace Savings Certificates issued by the Commonwealth;

“new securities” means Australian Consolidated Inscribed Stock and Australian Consolidated Treasury Bonds, and Treasury Bills, Debentures and other prescribed securities issued under this Act;

“tax-free securities” means securities issued by a State before the first day of January One thousand nine hundred and twenty-four, the income from which has not before the commencement of this Act been assessed for Commonwealth Income Tax;

“the Financial Agreement” means the agreement dated the twelfth day of December One thousand nine hundred and twenty-seven, between the Commonwealth and the States and set out in the Schedule to the Financial Agreement Validation Act 1929;

“the Australian Loan Council” means the Australian Loan Council constituted in accordance with the Financial Agreement.