Commonwealth act

Loan Act (No. 2) 1942

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

26 of 1942

Collection

act

Plain English Summary

1/10 complexity

This Act gives the Australian Government permission to borrow up to £100 million (a massive sum in 1942) to fund World War II efforts.

What it does:

Authorises borrowing: The Treasurer can raise up to £100 million by issuing government bonds (under the Commonwealth Inscribed Stock Act 1911–1940) or short-term Treasury Bills.
Limits the use: The money can only be spent on:
- The administrative costs of arranging these loans, and
- War purposes that Parliament has legally approved through separate appropriation laws.
Creates a spending pool: It establishes a specific fund of £100 million drawn from loan proceeds to pay for wartime expenses.

Why it matters: This was emergency wartime legislation designed to quickly mobilise massive financial resources for Australia's war effort during WWII, giving the government flexibility to raise capital through debt rather than immediate taxation.

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Current sections

Direct links to the current provisions in Loan Act (No. 2) 1942.

Loan Act (No. 2) 1942

LOAN (No. 2).

No. 26 of 1942.

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

[Assented to 9th June, 1942.]

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 (No. 2) 1942.

Commencement.

This Act shall come into operation on the day on which it receives the Royal Assent.

Authority to borrow £100,000,000.

The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911–1940, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole the amount of One hundred million pounds.

Purposes for which money may be expended.

The amount borrowed may be issued and applied only for the expenses of borrowing and for the purposes of appropriations made, or to be made, by law.

Issue and application of £100,000,000.

There may be issued and applied out of the proceeds of any loan raised under the authority of this Act, or of any other Act, the sum of One hundred million pounds for war purposes.

Source text

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

1 Loan Act (No. 2) 1942