Commonwealth legislation

Direction Relating to Commonwealth Borrowing 2013

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Collection

legislative instrument

Plain English Summary

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This Direction imposes a $500 billion legal cap on the total face value of Commonwealth government bonds and securities on issue, limiting how much the federal government may borrow via these instruments.

It binds officers delegated borrowing powers under the Commonwealth Inscribed Stock Act 1911 (e.g., AOFM/Treasury delegates), requiring they keep total nominal stock below the cap — constraining fiscal flexibility unless the cap is raised.

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DIRECTION RELATING TO COMMONWEALTH BORRO

DIRECTION RELATING TO COMMONWEALTH BORROWING

I, JOSEPH BENEDICT HOCKEY, Treasurer of the Commonwealth of Australia, give this Direction under section 51JA of the Commonwealth Inscribed Stock Act 1911 (‘the CIS Act’).

This Direction applies to the persons to whom powers under section 3A of the CIS Act have been delegated. Delegates are required to comply with this Direction.

Commonwealth borrowing

The Commonwealth can borrow to meet budgetary needs, and it can also borrow for policy purposes.

Maximum total face value of stock and securities that may be on issue

Pursuant to subsection 51JA(2) of the CIS Act, I direct that the maximum total face value of stock and securities that may be on issue is $500 billion.

This Direction replaces the previous Direction made under section 51JA of the CIS Act on 9 August 2012.

Dated this 11th day of December 2013

JOSEPH BENEDICT HOCKEY  
Treasurer of the Commonwealth of Australia

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

DIRECTION RELATING TO COMMONWEALTH BORRO DIRECTION RELATING TO COMMONWEALTH BORROWING

DIRECTION RELATING TO COMMONWEALTH BORROWING

I, JOSEPH BENEDICT HOCKEY, Treasurer of the Commonwealth of Australia, give this Direction under section 51JA of the Commonwealth Inscribed Stock Act 1911 (‘the CIS Act’).

This Direction applies to the persons to whom powers under section 3A of the CIS Act have been delegated. Delegates are required to comply with this Direction.

Commonwealth borrowing

The Commonwealth can borrow to meet budgetary needs, and it can also borrow for policy purposes.

Maximum total face value of stock and securities that may be on issue

Pursuant to subsection 51JA(2) of the CIS Act, I direct that the maximum total face value of stock and securities that may be on issue is $500 billion.

This Direction replaces the previous Direction made under section 51JA of the CIS Act on 9 August 2012.

Dated this 11th day of December 2013

JOSEPH BENEDICT HOCKEY  
Treasurer of the Commonwealth of Australia