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Commonwealth act
What does this law do?
This Act authorises the Australian Government — specifically the Treasurer (the minister responsible for federal finances) — to act as a guarantor for Qantas Airways. A guarantor is someone who promises to repay a debt if the borrower cannot. In plain terms: if Qantas couldn't repay its loans, Australian taxpayers would be on the hook.
What specifically was being guaranteed?
The guarantee covered loans Qantas took out to purchase two Boeing 747 aircraft, plus related spare parts and equipment. The total amount guaranteed was capped at USD $80 million (or the equivalent in any other currency).
Who does this affect?
Were there any safeguards?
Yes. Before giving the guarantee, the Treasurer had to be satisfied that:
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Direct links to the current provisions in Qantas Airways Limited (Loan Guarantee) Act 1978.
Zoe has indexed the source text for search and analysis. Use the official register for the original document and download formats.
View on official registerSourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Why does this matter historically?
In 1978, Qantas was a government-owned airline. This Act reflects a common practice of that era where governments directly supported state-owned enterprises by guaranteeing their commercial borrowings — effectively using the government's strong credit rating to help the airline secure financing for major purchases like aircraft.
Can the Treasurer delegate this power?
Yes — the Treasurer could appoint a senior Treasury official (in writing) to exercise these powers on their behalf, though the Treasurer retained the right to act personally at any time.