Australian Capital Territory
Financial Agreement Act 1994
No 19
Republication No 1
Republication date: 13 June 2002
Last amendment made by Act 2001 No 44
Amendments incorporated to 12 September 2001
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About this republication
The republished law
This is a republication of the Financial Agreement Act 1994 as in force on 13 June 2002.
It includes any amendment, repeal or expiry affecting the republished law to
12 September 2001 and any amendment made under the Legislation Act 2001, part 11.3
(Editorial changes).
The legislation history and amendment history of the republished law are set out in
endnotes 3 and 4.
Kinds of republications
The Parliamentary Counsel’s Office prepares 2 kinds of republications of ACT laws (see
the ACT legislation register at www.legislation.act.gov.au):
authorised republications to which the Legislation Act 2001 applies
unauthorised republications.
The status of this republication appears on the bottom of each page.
Editorial changes
The Legislation Act 2001, part 11.3 authorises the Parliamentary Counsel to make editorial
amendments and other changes of a formal nature when preparing a law for republication.
Editorial changes do not change the effect of the law, but have effect as if they had been
made by an Act commencing on the republication date (see Legislation Act 2001, s 115
and s 117). The changes are made if the Parliamentary Counsel considers they are
desirable to bring the law into line, or more closely into line, with current legislative
drafting practice.
This republication includes amendments made under part 11.3 (see endnote 1).
Uncommenced provisions and amendments
If a provision of the republished law has not commenced or is affected by an
uncommenced amendment, the symbol U appears immediately before the provision
heading. The text of the uncommenced provision or amendment appears only in the last
endnote.
Modifications
If a provision of the republished law is affected by a current modification, the symbol M
appears immediately before the provision heading. The text of the modifying provision
appears in the endnotes. For the legal status of modifications, see Legislation Act 2001,
section 95.
Penalties
The value of a penalty unit for an offence against this republished law at the republication
date is—
(a) if the person charged is an individual—$100; or
(b) if the person charged is a corporation—$500.
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Amendments incorporated to
12 September 2001
Australian Capital Territory
Financial Agreement Act 1994
Contents
Page
1 Name of Act 2
2 Application of Legislation Act 2
3 Meaning of the agreement 2
4 Approval of agreement 2
Schedule 1 Copy of the agreement 3
Endnotes
1 About the endnotes 25
2 Abbreviation key 25
3 Legislation history 26
4 Amendment history 26
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Amendments incorporated to
12 September 2001
Australian Capital Territory
Financial Agreement Act 1994
An Act to approve an agreement between the Commonwealth, States and
Territories, and for related purposes
Section 1
page 2 Financial Agreement Act 1994 R1
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1 Name of Act
This Act is the Financial Agreement Act 1994.
2 Application of Legislation Act
The Legislation Act 2001 does not apply to instruments made
under the agreement.
3 Meaning of the agreement
In this Act:
Note A definition applies except so far as the contrary intention appears
(see Legislation Act 2001, s 155).
the Agreement means the Agreement, a copy of which is set out
in schedule 1.
4 Approval of agreement
The agreement made on 25 February 1994 is approved.
Copy of the agreement Schedule 1
R1 Financial Agreement Act 1994 page 3
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Schedule 1 Copy of the agreement
(see s 3)
FINANCIAL AGREEMENT
pursuant to
section 105A of the Commonwealth Constitution
between
THE COMMONWEALTH OF AUSTRALIA
THE STATES
THE AUSTRALIAN CAPITAL TERRITORY
and
THE NORTHERN TERRITORY OF AUSTRALIA
AGREEMENT made the 25th day of February One thousand nine hundred
and ninety four between-
THE COMMONWEALTH OF AUSTRALIA of the first part;
THE STATE OF NEW SOUTH WALES of the second part;
THE STATE OF VICTORIA of the third part;
THE STATE OF QUEENSLAND of the fourth part;
THE STATE OF WESTERN AUSTRALIA of the fifth part;
THE STATE OF SOUTH AUSTRALIA of the sixth part;
THE STATE OF TASMANIA of the seventh part;
THE AUSTRALIAN CAPITAL TERRITORY of the eighth part; and
THE NORTHERN TERRITORY OF AUSTRALIA of the ninth part
Schedule 1 Copy of the agreement
page 4 Financial Agreement Act 1994 R1
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(each of the parties of the second, third, fourth, fifth, sixth and seventh parts
and, in relation to clause 4, the Australian Capital Territory and the
Northern Territory of Australia in respect of which for the time being the
Agreement is in force being in this Agreement referred to as a State and all
of those parties as the context so permits or requires being in this
Agreement referred to as the States).
WHEREAS:
(A) an Agreement (in this Agreement called the Original
Agreement) was made the 12th December 1927 between
the parties to this Agreement with respect to the public
debts of the States;
(B) the provisions of the Original Agreement (which, as varied
by the Supplemental Agreements, is in this Agreement
called the Principal Agreement) have been varied by the
following agreements made in pursuance of section 105A
of the Constitution of the Commonwealth of Australia-
(i) Agreement made the 1st July 1928, a copy of which
is set out in the schedule to the Tasmanian Sinking
Fund Agreement Act 1928;
(ii) Agreement made the 21st July 1931, a copy of which
is set out in the schedule to the Debt Conversion
Agreement Act 1931;
(iii) Agreement made the 22nd October 1931, a copy of
which is set out in the schedule to the Debt
Conversion Agreement Act (No. 2) 1931;
(iv) Agreement made the 3rd July 1934, a copy of which
is set out in the schedule to the Soldier Settlement
Loans (Financial Agreement) Act 1935;
(v) Agreement made the 15th November 1944, a copy of
which is set out in the schedule to the Financial
Agreement Act 1966;
Copy of the agreement Schedule 1
R1 Financial Agreement Act 1994 page 5
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(vi) Agreement made the 11th February 1966, a copy of
which is set out in the schedule to the Financial
Agreement Act 1966;
(vii) Agreement made the 5th February 1976, a copy of
which is set out in the schedule to the Financial
Agreement Act 1976,
(which Agreements are in this Agreement referred to
as the Supplemental Agreements);
(C) the parties, other than those of the eighth and ninth parts,
have agreed that in pursuance of section 105A of the
Constitution provision as specified in this Agreement
different from that in the Principal Agreement should be
made as to;
(i) the powers of the Loan Council;
(ii) the restriction on a State from borrowing by the issue
of securities in its own name in domestic and
overseas markets;
(iii) the requirement on the Commonwealth and on a State
for approval of borrowings; and
(iv) the power of the Commonwealth to borrow on behalf
of the States; and
(D) all the parties, agree that
(i) the Australian Capital Territory and the Northern
Territory be represented on the Loan Council;
(ii) the Loan Council have a power to make resolutions
only; and
(iii) the Northern Territory and the Commonwealth make
into the Debt Retirement Reserve Trust Account the
payments that they would otherwise have made under
the 1986 Arrangements;
NOW IT IS HEREBY AGREED as follows:
Schedule 1 Copy of the agreement
page 6 Financial Agreement Act 1994 R1
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1(1) This Agreement, other than this clause, shall have no force or
effect and shall not be binding upon any party until, in respect
of each party, either-
(a) it is signed with the prior authority of the Parliament or, in
the case of each Territory, the Legislative Assembly, of
that party; or
(b) after having been signed, it is approved by the Parliament
or, in the case of each Territory, the Legislative Assembly,
of that party.
(2) The Commonwealth will take, as soon as possible, all
practicable steps to seek the enactment of legislation relating to:
(a) the cessation of the National Debt Sinking Fund created
by the National Debt Sinking Fund Act 1966;
(b) the establishment of the Debt Retirement Reserve Trust
Account; and
(c) thereupon, the payment from the National Debt Sinking
Fund or, in the case of the Northern Territory, the Northern
Territory Debt Sinking Fund, into the Debt Retirement
Reserve Trust Account, but so that the payment is made to
the credit of the accounts established in respect of the
relevant States or the Northern Territory, as the case may
be, of the moneys then standing to the credit of the
accounts in the National Debt Sinking Fund or the
Northern Territory Debt Sinking Fund, respectively,
including any later amounts which, but for the abolition of
the National Debt Sinking Fund or the Northern Territory
Debt Sinking Fund, would, when received, have been paid
into the National Debt Sinking Fund or the Northern
Territory Debt Sinking Fund.
2(1) This Agreement, as varied from time to time, shall be known as
the 1994 Financial Agreement.
(2) Upon its coming into force, clauses 7, 8, 10, 11 and 13 of this
Agreement shall be deemed to have commenced to operate on
and from 1 July 1990.
Copy of the agreement Schedule 1
R1 Financial Agreement Act 1994 page 7
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3(1) In this Agreement, unless the contrary intention appears-
bondholder means holder of any securities but does not include
the Commonwealth;
face value means-
(a) in relation to securities repayable in Australian currency,
the principal amount, excluding any amount payable by
way of premium, remaining to be repaid in respect of the
securities;
(b) in relation to securities repayable in an overseas currency,
the equivalent in Australian currency of the principal
amount, excluding any amount payable by way of
premium, remaining to be paid in respect of the securities,
converted at the Reserve Bank of Australia selling rate to
the Commonwealth Government at the time of conversion
or at such rate as is agreed between the Commonwealth
and the States;
gross cost, in relation to the purchase of securities, means the
amount actually paid for the securities, including interest,
brokerage and commission;
holder, in relation to securities, means owner of the securities
according to the manner in which ownership of the securities is
determined;
net public debt, means:
(a) in relation to a State, the public debt of the State less an
amount equal to the sum of the balance standing to the
credit of the State-
(A) in relation to the period until the establishment of the
Debt Retirement Reserve Trust Account, in the
Sinking Fund; and
(B) thereafter, in the Debt Retirement Reserve Trust
Account; and
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(b) in relation to the Northern Territory, the public debt of that
Territory less an amount equal to the sum of the balance
standing to the credit of the Territory-
(C) in relation to the period until the establishment of the
Debt Retirement Reserve Trust Account, in the
Northern Territory Debt Sinking Fund; and
(D) thereafter, in the Debt Retirement Reserve Trust
Account;
Premier includes, in relation to clause 4, the Chief Minister of-
(a) the Australian Capital Territory; and
(b) the Northern Territory of Australia,
as the case may be;
public debt means
(a) in relation to a State, the aggregate of the face value of the
securities issued or created by the State or issued or created
in respect of the State in accordance with the Principal
Agreement that have not been purchased, redeemed or
otherwise repaid or in respect of which the State has not
otherwise been freed and discharged from liability; and
(b) in relation to the Northern Territory, the aggregate of the
face value of the securities issued or created in respect of
the Northern Territory in accordance with the 1986
Arrangements that have not been purchased, redeemed or
otherwise repaid or in respect of which the Northern
Territory has not otherwise been freed and discharged from
liability;
securities means-
(a) where the context involves a State;
Inscribed Stock and Bonds
Instalment Stock
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Registered Stock
Funded Stock
Stock payable to bearer
Special Bonds
Australian Savings Bonds
which were issued or created by a State and taken over by
the Commonwealth under the Principal Agreement or
issued or created in respect of a State; and
(b) where the context involves the Northern Territory;
Inscribed Stock and Bonds
Registered Stock
Stock payable to bearer
Australian Savings Bonds
which were issued or created in respect of the Northern
Territory under the 1986 Arrangements;
the Commission means the National Debt Commission
continued in existence by the National Debt Sinking Fund Act
1966;
the Loan Council means the Australian Loan Council continued
in existence pursuant to this Agreement;
the Sinking Fund means the National Debt Sinking Fund
created by the National Debt Sinking Fund Act 1966; and
the 1986 Arrangements means the Arrangements entered into
between the Commonwealth of Australia and the Northern
Territory dated the 26th May 1986 under which, among other
things, there was created the Northern Territory Debt Sinking
Fund within the Commonwealth Trust Fund.
(2) In this Agreement-
Schedule 1 Copy of the agreement
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(a) a reference to a year is, unless the contrary intention
appears, a reference to a financial year commencing on a
1st July;
(b) the expression “in writing” includes any mode of
representing or reproducing words and figures in a written
form; and
(c) except where inconsistent with the context, words in the
singular include the plural and words in the plural include
the singular.
4(1) The Australian Loan Council created under the Principal
Agreement is continued in existence hereunder but so that it
shall consist of one representative of the Commonwealth who
shall be-
(a) the Prime Minister of the Commonwealth; or
(b) a Minister or other person nominated in writing by the
Prime Minister,
and one representative of each State who shall be-
(c) the Premier of that State; or
(d) a Minister or other person nominated in writing by the
Premier of that State,
provided that the nomination of the Minister shall be deemed to
include another Minister of the Commonwealth or of the State,
as the case may be, who is for the time being acting for the
Minister nominated and references in this clause to a
representative shall be read so as to include a Minister who is so
acting.
(2) Any nomination of a substitute representative of the
Commonwealth or of a State shall be tabled at the meeting of
the Loan Council next succeeding the nomination.
(3) The representative of the Commonwealth on the Loan Council
shall hold office during the pleasure of the Prime Minister of the
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Commonwealth and a representative of a State shall hold office
during the pleasure of his or her Premier.
(4) The representative of the Commonwealth shall be the Chairman
of the Loan Council.
(5) A decision in which all the representatives for the time being of
the Loan Council concur shall be not affected by any vacancy
then existing among the representatives.
(6) A meeting of the Loan Council may at any time be convened by
the representative of the Commonwealth, and shall be so
convened upon the request of at least four State representatives.
(7) A majority of the representatives of the Loan Council shall
constitute a quorum of the Loan Council for the exercise of its
powers at any meeting, provided that-
(a) a representative may at any time appoint in writing a
deputy to act in his absence, and any deputy so appointed
may in the absence of the representative exercise all the
powers and functions of the representative and his or her
presence shall be deemed the presence of the
representative; and
(b) an absent representative who has not appointed a deputy
may vote by letter, telegram, or by facsimile and in such
case that representative shall be counted as being present
in relation only to the questions on which he or she has
voted.
(8) The Loan Council may make rules of procedure including rules
relating to places, times, and notices of meetings, and conduct
of business at meetings, including voting on a resolution and
from time to time may alter such rules.
(9) The Loan Council may make resolutions, which are not to
operate as they would have operated had clause 3 (15) of the
original Agreement not been rescinded, in relation to-
(a) borrowings;
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(b) raisings; and
(c) other financial arrangements
by the Commonwealth, a State, a local governing body or any
entity owned or controlled wholly or as to a major part by any
of them, save for any of the foregoing excepted from time to
time by the Loan Council.
(10) In this clause the expressions “Prime Minister” and “Premier”
include the persons for the time being respectively acting as
such.
5(1) Subject to this clause the Commonwealth will continue to pay to
bondholders from time to time interest payable on the Public
Debts of the States taken over by the Commonwealth under the
Principal Agreement other than debts due by the States to the
Commonwealth.
(2) Each State shall continue to pay in each year to the
Commonwealth, as it falls due, the whole of the interest on any
debt included in the public debt of that State taken over by the
Commonwealth under the Principal Agreement, and on any
moneys borrowed by the Commonwealth under the Principal
Agreement on behalf of that State, then unpaid.
(3) The Northern Territory shall continue to pay in each year to the
Commonwealth, as it falls due, the whole of the interest on any
moneys borrowed by the Commonwealth on behalf of the
Northern Territory under the 1986 Arrangements then unpaid.
(4) The method by which payments shall be made by a State under
sub-clause (2) or the Northern Territory under sub-clause (3) of
this clause shall be arranged from time to time between the
Commonwealth and, respectively, that State or the Northern
Territory.
(5) The rate of interest payable under sub-clause (2) of this clause
in respect of moneys borrowed by the Commonwealth on behalf
of a State shall be the full rate of interest payable by the
Commonwealth in respect of the loan by which such moneys
were borrowed or such other rate of interest as may be payable
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by the State to the Commonwealth under any agreement made
or to be made between the Commonwealth and that State in
respect of such moneys and such interest shall be payable by
that State for the full term of that loan.
(6) The rate of interest payable under sub-clause (3) of this clause
in respect of moneys borrowed by the Commonwealth on behalf
of the Northern Territory shall be the full rate of interest payable
by the Commonwealth in respect of the loan by which such
moneys were borrowed or such other rate of interest as may be
payable by the Northern Territory to the Commonwealth under
any agreement made or to be made between the Commonwealth
and the Northern Territory in respect of such moneys and such
interest shall be payable by the Northern Territory for the full
term of that loan.
6(1) There shall be a trust account to be called the “Debt Retirement
Reserve Trust Account”.
(2) The Commonwealth shall establish and maintain a separate
account in the Debt Retirement Reserve Trust Account in
respect of each State.
(3) The Commonwealth shall establish and maintain a separate
account in the Debt Retirement Reserve Trust Account in
respect of the Northern Territory.
(4) There shall be paid by the Commonwealth into each of those
accounts in the Debt Retirement Reserve Trust Account
established under sub-clause 6(2):
(a) amounts equal to the amounts received from the State
under sub-clause 7(2); and
(b) amounts being the contributions by the Commonwealth
under clause 8.
(5) There shall be paid by the Commonwealth into the accounts in
the Debt Retirement Reserve Trust Account established under
sub-clause 6(3):
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(a) amounts equal to the amounts received from the Northern
Territory under sub-clause 7(3); and
(b) amounts being the contributions by the Commonwealth
under clause 8.
(6) Moneys standing to the credit of an account established in
respect of a State in the Debt Retirement Reserve Trust Account
shall be applied by the Commonwealth in connection with the
purchase, redemption, including redemption on conversion, and
repayment of securities of that State. The gross cost, in the case
of purchase, or the cost at face value, in the case of redemption
or repayment, shall be charged to the account established in
respect of that State in the Debt Retirement Reserve Trust
Account.
(7) Moneys standing to the credit of the account established in
respect of the Northern Territory in the Debt Retirement
Reserve Trust Account shall be applied by the Commonwealth
in connection with the purchase, redemption, including
redemption on conversion, and repayment of securities of the
Northern Territory. The gross cost, in the case of purchase, or
the cost at face value, in the case of redemption or repayment,
shall be charged to the account established in respect of that
Territory in the Debt Retirement Reserve Trust Account.
(8) Moneys standing to the credit of an account established in
respect of a State in the Debt Retirement Reserve Trust Account
will be held within the Commonwealth Public Account
established pursuant to paragraph 21(1)(a) of the Audit Act
1901 or that provision as amended, modified or re-enacted from
time to time. An amount equal to interest earned on that part of
the balances in the Commonwealth Public Account attributable
to the credit balance in the account established in respect of a
State within the Debt Retirement Reserve Trust Account shall
be added to the moneys standing to the credit of that account.
(9) Moneys standing to the credit of the account established in
respect of the Northern Territory in the Debt Retirement
Reserve Trust Account will be held within the Commonwealth
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Public Account established pursuant to paragraph 21(1)(a) of
the Audit Act 1901 or that provision as amended, modified or
re-enacted from time to time. An amount equal to interest
earned on that part of the balances in the Commonwealth Public
Account attributable to the credit balance in the account
established in respect of the Northern Territory within the Debt
Retirement Reserve Trust Account shall be added to the moneys
standing to the credit of that account.
(10) When securities of a State or of the Northern Territory are
purchased, redeemed or repaid, the securities shall be deemed to
have been cancelled on the date of the purchase, redemption or
repayment.
7(1) Each State shall, in respect of the public debt of the State, pay
by equal monthly instalments during each year commencing on
1 July 1990 or in such other amounts as are determined by
agreement between the Commonwealth and the relevant State a
contribution calculated in respect of that year as provided in this
clause.
(2) Each State shall pay the contribution in respect of each year-
(a) in respect of the period from 1 July 1990 until the
establishment of the Debt Retirement Reserve Trust
Account, to the Commission for credit to the account of
the State in the Sinking Fund, and
(b) thereafter, to the Commonwealth for credit to the account
established in respect of the State in the Debt Retirement
Reserve Trust Account
such that the contribution, together with-
(c) in the case of the period referred to in paragraph (a),
(i) amounts of interest referred to in sub-clause 12A(7)
of the Principal Agreement, preserved by sub-clause
16(2), in respect of the relevant year or, where the
Debt Retirement Reserve Trust Account has operated
for only part of the year, the other part of that year;
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(ii) contributions by the Commonwealth pursuant to
clause 8 as it relates to the State in respect of the
relevant year or, where the Debt Retirement Reserve
Trust Account has operated for only part of the year,
the other part of that year; and
(iii) the moneys standing to the credit of an account in
respect of the State in the Sinking Fund as at the
commencement of that year including where the Debt
Retirement Reserve Trust Account has operated for
only part of the year; and
(d) in the case of the period referred to in paragraph (b),
(i) amounts equal to interest referred to in sub-clause
6(8) in respect of the relevant year, or where the Debt
Retirement Reserve Trust Account has operated for
only part of the year, the interest referred to in sub-
clause 6(8) for that part of that year;
(ii) contributions by the Commonwealth pursuant to
clause 8 in respect of the relevant year or where the
Debt Retirement Reserve Trust Account has operated
for only part of the year, the contribution made into
the Debt Retirement Reserve Trust Account for that
part of the year; and
(iii) the moneys standing at the commencement of the
relevant year to the credit of an account in respect of
the State in the Debt Retirement Reserve Trust
Account,
is equal to the total of those parts of its public debt which
falls to be redeemed or is repaid or purchased in that year,
or any greater amount which the State elects to have
redeemed, repaid or purchased in that year, but so that in
any event that contribution shall not be less than an amount
equal to 0.85 per centum of the net public debt of the State
as at the 30th June immediately preceding the year in
which the contribution is payable.
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(3) The Northern Territory shall pay a contribution in respect of
each year-
(a) in respect of the period from 1 July 1990 until the
establishment of the Debt Retirement Reserve Trust
Account, to the Commonwealth for credit to the Northern
Territory Debt Sinking Fund; and
(b) thereafter, to the Commonwealth for credit to the account
established in respect of the Northern Territory in the Debt
Retirement Reserve Trust Account
such that the contribution, together with-
(c) in the case of the period referred to in paragraph (a),
(i) amounts of interest which would have been payable
under the 1986 Arrangements in respect of the
relevant year or, where the Debt Retirement Reserve
Trust Account has operated for only part of the year,
the other part of that year;
(ii) contributions by the Commonwealth pursuant to
clause 8 as it relates to the Territory in respect of the
relevant year or, where the Debt Retirement Reserve
Trust Account has operated for only part of the year,
the other part of that year; and
(iii) the moneys standing to the credit of the Northern
Territory Debt Sinking Fund as at the commencement
of that year including where the Debt Retirement
Reserve Trust Account has operated for only part of
the year; and
(d) in the case of the period referred to in paragraph (b),
(i) amounts equal to interest referred to in sub-clause
6(9) in respect of the relevant year or, where the Debt
Retirement Reserve Trust Account has operated for
only part of the year, the interest referred to in sub-
clause 6(9) for that part of that year;
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(ii) contributions by the Commonwealth pursuant to
clause 8 in respect of the relevant year or, where the
Debt Retirement Reserve Trust Account has operated
for only part of the year, the contribution made into
the Debt Retirement Reserve Trust Account for that
part of the year; and
(iii) the moneys standing at the commencement of the
relevant year to the credit of the account in respect of
the Northern Territory in the Debt Retirement
Reserve Trust Account,
is equal to the total of those parts of its public debt which
falls to be redeemed or is repaid or purchased in that year
or any greater amount which the Northern Territory elects
to have redeemed, repaid or purchased in that year, but so
that in any event that contribution shall not be less than an
amount equal to 0.85 per centum of the net public debt of
the Northern Territory as at the 30th June immediately
preceding the year in which the contribution is payable.
8(1) The Commonwealth shall, in respect of the public debt of each
State and of the Northern Territory, pay for credit to the account
of the State in the National Debt Sinking Fund and that
Territory in the Northern Territory Debt Sinking Fund by equal
monthly instalments during each year commencing 1 July 1990
or in such other amounts as are determined by agreement
between the Commonwealth and the relevant State or the
Commonwealth and the Northern Territory, as the case may be,
a contribution calculated in respect of that year as provided in
this clause.
(2) The Commonwealth shall pay a contribution in respect of each
of those years in relation to the public debt of a State and in
relation to the public debt of the Northern Territory that is
equivalent to 0.28 per centum of the net public debt of the State
or the Northern Territory, as the case may be, at the 30th June
immediately preceding the year in which the contribution is
payable.
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(3) On and from the establishment of the Debt Retirement Reserve
Trust Account the contribution payable by the Commonwealth
under this clause in respect of the States and the Northern
Territory shall be paid into that Account.
9 The contributions payable after the establishment of the Debt
Retirement Reserve Trust Account by the Northern Territory
under sub-clause 7(3) shall be:
(a) in respect of so much of the year ending on 30 June next
following the establishment of the Debt Retirement
Reserve Trust Account; and
(b) in respect of each succeeding year,
of equal monthly instalments during the period referred to in
paragraph (a) or during the year referred to in paragraph (b) or
of such other amounts as are determined by agreement between
the Commonwealth and the Northern Territory.
10 The Commonwealth shall reimburse, in such amounts and at
such times as agreed between the Commonwealth and the State,
each State for the excess, as assessed by agreement between the
Commonwealth and the State, of the amount of the costs to the
State incurred from 1 July 1990 in respect of the redemption,
repayment and purchase, by the Commonwealth of the
securities from that date over the amount of the costs that would
have been so incurred under the Principal Agreement.
11 The Commonwealth shall reimburse, in such amounts and at
such times as agreed between the Commonwealth and the
Northern Territory, for the excess, as assessed by agreement
between the Commonwealth and that Territory of the amount of
the costs to that Territory incurred from 1 July 1990 in respect
of the redemption, repayment and purchase, by the
Commonwealth of the securities from that date over the amount
of the costs that would have been so incurred under the 1986
Arrangements.
12(1) Each State and the Northern Territory shall repay to the
Commonwealth all expenses incurred or payments made by the
Schedule 1 Copy of the agreement
page 20 Financial Agreement Act 1994 R1
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
Commonwealth in the performance of this Agreement in
relation to the State and the Northern Territory, including the
following expenses and payments:-
(a) Loan flotation charges;
(b) Management charges;
(c) Stamp duties on transfer of securities;
(d) Commission on payment of interest;
(e) Expenses incurred in the conversion, renewal, redemption
or consolidation of loans; and
(f) Exchange on transference of moneys.
(2) Unless it is otherwise agreed between the Commonwealth and a
State, the Commonwealth will not do anything in connection
with a loan of that State existing on the 30th June, 1927, or
raised thereafter pursuant to the Principal Agreement, which, if
done by that State, would be a breach of any now existing
agreement by that State with any Bank.
(3) A certificate by the auditor-general of the Commonwealth
stating the amount to be repaid by a State to the Commonwealth
and the matter in respect of which the repayment is to be made
shall, in the event of a dispute, be conclusive as to the amount
and matter stated.
13 Each State agrees with the Commonwealth that it will by the
faithful performance of its obligations under this Agreement
indemnify the Commonwealth against all liabilities whatsoever
in respect of the public debt of that State (other than the
liabilities of the Commonwealth under this Agreement to pay
interest and to make sinking fund contributions or, after its
establishment, contributions to the Debt Retirement Reserve
Trust Account), not falling payable under the Principal
Agreement prior to the 1 July 1990 in respect of which this
Agreement provides that sinking fund contributions or, after its
establishment, contributions to the Debt Retirement Reserve
Trust Account shall be made.
Copy of the agreement Schedule 1
R1 Financial Agreement Act 1994 page 21
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
14 The Northern Territory agrees with the Commonwealth that it
will by the faithful performance of its obligations under this
Agreement indemnify the Commonwealth against all liabilities
whatsoever in respect of all loans of that Territory for which this
Agreement provides that, after its establishment, contributions
to the Debt Retirement Reserve Trust Account shall be made.
15 Separate accounts shall be kept by the Commonwealth for each
State and, so far as relevant, for the Northern Territory in
respect of Debt, Interest, and Sinking Funds or, after its
establishment, contributions for the purposes of the Debt
Retirement Reserve Trust Account.
16(1) This Agreement rescinds the Principal Agreement, except as
provided by this clause, but with effect from the date on which
this Agreement, other than Clauses 7, 8, 10, 11 and 13, comes
into effect.
(2) Sub-clauses 12A(1), (2) and (4) to (12), inclusive, of the
Principal Agreement continue to operate until the date on which
the Debt Retirement Reserve Trust Account is established and,
for the purposes of their continued operation, references in sub-
clause 12A(9) of the Principal Agreement to clauses 12B and
12C are taken to be references to clauses 7 and 8, respectively,
of this Agreement.
(3) This Agreement rescinds, with effect from the date referred to in
sub-clause (1), the provisions of the 1986 Arrangements in
relation to debt outstanding as at 1 July 1990, being debt arising
from securities the subject of those Arrangements issued or
created in respect of the Northern Territory by the
Commonwealth.
IN WITNESS WHEREOF this agreement has been signed for and on
behalf of the parties respectively as at the day and year first above written.
SIGNED by the Honourable PAUL JOHN )
Schedule 1 Copy of the agreement
page 22 Financial Agreement Act 1994 R1
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
KEATING, Prime Minister of the )
Commonwealth of Australia )
in the presence of ) Paul Keating
)
Michael Keating )
SIGNED by the Honourable JOHN )
JOSEPH FAHEY, Premier of the )
State of New South Wales, )
in the presence of ) John Fahey
)
R. Wilkins )
SIGNED by the Honourable JEFFREY GIBB )
KENNET, Premier of the State of Victoria, )
in the presence of ) J. Kennett
)
Ken Baxter )
SIGNED by the Honourable WAYNE
KEITH
)
GOSS, Premier of the State of Queensland, )
in the presence of ) Wayne Goss
)
K. Rudd )
Copy of the agreement Schedule 1
R1 Financial Agreement Act 1994 page 23
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
SIGNED by the Honourable RICHARD )
FAIRFAX COURT, Premier of the )
State of Western Australia, in the presence of ) Richard F. Court
)
Don Saunders )
SIGNED by the Honourable DEAN CRAIG )
BROWN, Premier of the State of South
Australia,
)
in the presence of ) Dean Brown
)
M. Schilling )
SIGNED by the Honourable RAYMOND )
JOHN GROOM, Premier of the State of )
Tasmania, in the presence of ) R. J. Groom
)
Dan Norton )
SIGNED by ROSEMARY FOLLETT, )
Chief Minister of the Australian Capital )
Territory, in the presence of ) Rosemary Follett
)
David Rosalky )
SIGNED by the Honourable MARSHALL )
Schedule 1 Copy of the agreement
page 24 Financial Agreement Act 1994 R1
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
BRUCE PERRON, Chief Minister of the )
Northern Territory, in the presence of ) M. Perron
)
Neil Conn )
Endnotes
About the endnotes 1
R1 Financial Agreement Act 1994 page 25
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
Endnotes
1 About the endnotes
Amending and modifying laws are annotated in the legislation history and
the amendment history. Current modifications are not included in the
republished law but are set out in the endnotes.
Not all editorial amendments made under the Legislation Act 2001, part 11.3
are annotated in the amendment history. Full details of any amendments can
be obtained from the Parliamentary Counsel’s Office.
Uncommenced amending laws and expiries are listed in the legislation
history and the amendment history. These details are underlined.
Uncommenced provisions and amendments are not included in the
republished law but are set out in the last endnote.
If all the provisions of the law have been renumbered, a table of renumbered
provisions gives details of previous and current numbering.
The endnotes also include a table of earlier republications.
If the republished law includes penalties, current information about penalty
unit values appears on the republication inside front cover.
2 Abbreviation key
am = amended ord = ordinance
amdt = amendment orig = original
ch = chapter p = page
cl = clause par = paragraph
def = definition pres = present
dict = dictionary prev = previous
disallowed = disallowed by the Legislative (prev...) = previously
Assembly prov = provision
div = division pt = part
exp = expires/expired r = rule/subrule
Gaz = Gazette reg = regulation/subregulation
hdg = heading renum = renumbered
IA = Interpretation Act 1967 reloc = relocated
ins = inserted/added R[X] = Republication No
LA = Legislation Act 2001 s = section/subsection
LR = legislation register sch = schedule
LRA = Legislation (Republication) Act 1996 sdiv = subdivision
mod = modified / modification sub = substituted
No = number SL = Subordinate Law
num = numbered underlining = whole or part not commenced
o = order or to be expired
om = omitted/repealed
Endnotes
3 Legislation history
page 26 Financial Agreement Act 1994 R1
Authorised by the ACT Parliamentary Counsel—also accessible at www.legislation.act.gov.au
3 Legislation history
Financial Agreement Act 1994 A1994-19
notified 20 May 1994 (Gaz 1994 No S87)
commenced 20 May 1994 (s 2)
as amended by
Legislation (Consequential Amendments) Act 2001 A2001-44
pt 143
notified 26 July 2001 (Gaz 2001 No 30)
s 1, s 2 commenced 26 July 2001 (IA s 10B)
pt 143 commenced 12 September 2001 (s 2 and Gaz 2001
No S65)
4 Amendment history
Application of Legislation Act
s 2 sub A2001-44 amdt 1.1625
Copy of the agreement
sch 1 hdg (prev sch hdg) renum R1 LA