Commonwealth act

Loan Act 1931

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

12 of 1931

Collection

act

Plain English Summary

1/10 complexity

What this Act does:

This is a straightforward "permission slip" for the federal government to borrow money. Specifically, it allows the Treasurer to borrow up to £15 million (in 1931 currency) by issuing government bonds (under the Commonwealth Inscribed Stock Act) or treasury bills.

Where the money goes:

Instead of being earmarked for a specific project like a railway or hospital, the borrowed money is paid directly into the government's general bank account — the Consolidated Revenue Fund (the main account used to fund day-to-day government operations).

Why it matters:

During the Great Depression (when this Act was passed), governments often needed to borrow to manage cash flow and fund unemployment relief. This Act simply gives the Treasurer the legal authority to go to financial markets and raise that specific amount of cash, with the funds flowing straight into general revenue.

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Current sections

Direct links to the current provisions in Loan Act 1931.

Loan Act 1931

LOAN.

No. 12 of 1931.

An Act to authorize the Raising and Expending of a certain Sum of Money.

[Assented to 22nd July, 1931.]

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

Short title.

This Act may be cited as the Loan Act 1931.

Treasure may borrow £15,000,000.

The Treasurer may, from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911-1927, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow moneys not exceeding in the whole the amount of Fifteen million pounds.

Purpose for which money may be expended

The amount borrowed shall be issued and applied only for the expenses of borrowing and for the purpose set forth in the Schedule to this Act.

Date of commencement.

This Act shall be deemed to have commenced on the thirtieth day of June One thousand nine hundred and thirty-one.

THE SCHEDULE.

No. 1.—To be paid into the Consolidated Revenue Fund.......£15,000,000

Source text

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

1 Loan Act 1931