Commonwealth legislation

Direction Relating to Commonwealth Borrowing 2017

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This Act has been repealed and is no longer in force. It is retained for historical reference.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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What this does: This Direction sets a $600 billion cap on how much money the Australian Government can owe at any one time through government bonds (called "stock and securities").

Who it affects: Government officials who handle Commonwealth borrowing under the Commonwealth Inscribed Stock Act 1911.

Why it matters: This acts as the government's credit card limit. It allows borrowing for two purposes:

Budgetary needs — funding day-to-day operations and services
Policy purposes — funding specific government initiatives

The Direction replaces an earlier borrowing limit set in December 2013. Once total debt hits $600 billion, the government cannot borrow more without paying down existing debt or issuing a new Direction to raise the limit.

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DIRECTION RELATING TO COMMONWEALTH BORRO

DIRECTION RELATING TO COMMONWEALTH BORROWING

I, SCOTT JOHN MORRISON, 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 $600 billion.

This Direction replaces the previous Direction made under section 51JA of the CIS Act on 11 December 2013, which is repealed.

Dated this 9th day of May 2017

SCOTT JOHN MORRISON  
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, SCOTT JOHN MORRISON, 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 $600 billion.

This Direction replaces the previous Direction made under section 51JA of the CIS Act on 11 December 2013, which is repealed.

Dated this 9th day of May 2017

SCOTT JOHN MORRISON  
Treasurer of the Commonwealth of Australia