Commonwealth act

Loan Act (No. 3) 1942

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

47 of 1942

Collection

act

Plain English Summary

2/10 complexity

This World War II-era law authorized the Australian Government to borrow up to £200 million (an enormous sum in 1942) to help pay for the war effort.

What it does:

Gives the Treasurer power to raise up to £200 million through government loans
Allows borrowing via Commonwealth Inscribed Stock (government bonds sold to investors) or Treasury Bills (short-term government IOUs)

Where the money goes:

Paying the costs of arranging these loans
Funding military operations and other government spending that Parliament has approved or will approve

Why it matters: During WWII, Australia needed massive funds to pay for troops, ships, aircraft, and equipment. This Act provided the legal authority for the government to borrow that money from financial markets, ensuring Australia could meet its military commitments without immediate cash reserves.

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Current sections

Direct links to the current provisions in Loan Act (No. 3) 1942.

Loan Act (No. 3) 1942

LOAN (No. 3).

No. 47 of 1942.

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

[Assented to 6th October, 1942.]

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

This Act may be cited as the Loan Act (No. 3) 1942.

Commencement.

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

Authority to borrow £200,000,000.

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 Two 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 £200,000,000.

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 Two 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. 3) 1942