Loan Act 1939

Loan Act 1939 — Plain English Summary

This Act is a wartime borrowing authorisation — a short piece of legislation that gave the Australian Government the legal power to borrow and spend a specific sum of money at the outbreak of World War II.

What does it do?

• It authorises the Treasurer to borrow up to £22,630,000 (roughly twenty-two and a half million pounds) through existing mechanisms like Commonwealth Inscribed Stock (a form of government bond, similar to an IOU issued to investors) or Treasury Bills (short-term government debt instruments).
• It locks in exactly how that borrowed money can be spent, as itemised in the Schedule (the detailed table at the end of the Act).

Who does it affect?

• The Australian Government and Treasury, who gain the legal authority to raise and spend this debt.
• The Australian military and defence industry, who are the primary recipients of the spending.
• Australian taxpayers, who ultimately bear the cost of repaying this borrowing.

Where does the money go?

The Schedule breaks down the spending across four areas:

• Department of Defence (£9,637,000) — the largest recipient, split across:

  • : Naval construction, fleet additions, ammunition reserves, machinery, and facilities