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Commonwealth act
This Act has been repealed and is no longer in force. It is retained for historical reference.
This Act approves a 1934 agreement that restructures World War I soldier-settlement debts: substantial State debts are written down, remaining balances are converted into Commonwealth bonds, and interest charges to settlers are capped. It defines eligible settlers (returned servicemen, war workers and dependents) and confirms Commonwealth and State representation on the Loan Council.
It affects the six borrowing States, veteran settlers and the Commonwealth, delivering Depression-era relief and simplifying WWI-era financing.
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Direct links to the current provisions in Soldier Settlement Loans (Financial Agreement) Act 1935.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
SOLDIER SETTLEMENT LOANS (FINANCIAL AGREEMENT).
No. 26 of 1935.
An Act to approve an agreement made between the Commonwealth of Australia of the First Part and the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania of the Second, Third, Fourth, Fifth, Sixth and Seventh Parts respectively.
[Assented to 13th April, 1935.]
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.
Approval of Agreement.
THE SCHEDULE.
Agreement made the third day of July One thousand nine hundred and thirty four between The Commonwealth of Australia (in this Agreement called “the Commonwealth”) of the first part The State of New South Wales of the second part The State of Victoria of the third part The State of Queensland of the fourth part The State of South Australia of the fifth part The State of Western Australia of the sixth part and The State of Tasmania of the seventh part (each of the parties of the second third fourth fifth sixth and seventh parts being in this Agreement referred to as a “State” and the expression “the States” hereinafter used meaning where the context so permits or requires all of such parties);
Whereas this Agreement is supplemental to an Agreement (hereinafter referred to as the “Financial Agreement”) made the twelfth day of December One thousand nine hundred and twenty-seven between the same parties as are parties hereto with respect to the public debts of the States including—
(a) the taking over of such debts by the Commonwealth; and
(b) the payment of interest and the provision of Sinking Funds in respect of such debts:
which Agreement has been approved by the Parliaments of the Commonwealth and of the States;
And whereas the Commonwealth has lent to each of the States certain sums for the purposes of settling on the land returned soldiers and their dependants and other persons being settlers as defined in this Agreement and has received from each of the States certain sums as repayment in part of the said sums lent as aforesaid particulars of the sums so lent and so repaid being set forth in the Schedule hereto;
And whereas the balances of the said several sums lent by the Commonwealth to each State after deducting from such sums respectively the said several sums repaid by that State to the Commonwealth are included in the amount of the net public debt of that State existing on 30th June 1927 as set forth in the said Financial Agreement;
And whereas the Commonwealth and the States have agreed pursuant to Section 105a of the Commonwealth Constitution that the provisions hereinafter contained shall apply to the aforesaid portion of the said Public Debt of each State and that the Financial Agreement as altered by the two several Agreements made the 21st July 1931 and the 22nd October 1931 between the parties hereto shall be varied accordingly.
Now it is hereby agreed as follows:—
This Agreement shall have no force or effect and shall not be binding on any party unless and until it is authorized or approved by the Parliaments of the Commonwealth and of the States.
In this Agreement—
(a) Any person who was at any time after the fourth day of August One thousand nine hundred and fourteen and before the thirty-first day of August One thousand nine hundred and twenty one—
(i) a member of the Naval or Military Forces enlisted or appointed for or employed on active service outside Australia or employed in a ship of war; or
(ii) a member of the Army Medical Corps Nursing service accepted or appointed by the Director-General of Medical Services for services outside Australia; or
(iii) serving in the Naval or Military Forces of any part of the King’s Dominions other than the Commonwealth on proof to the satisfaction of the State concerned that he had before his enlistment or appointment for service resided in the Commonwealth; or
(iv) a member of the Army Medical Corps Nursing service of any part of the King’s Dominions other than the Commonwealth on proof to the satisfaction of the State concerned that she had before her acceptance by or appointment to that service resided in Australia;
shall be deemed to be a member of the Forces within the meaning of this Agreement;
(b) “Dependant” means a widow or mother or child (including an ex-nuptial child) of a deceased member of the Forces who was wholly or in part dependent upon the earnings of or upon the members of the Forces at any time during the period of twelve months prior to his becoming a member of the Forces;
(c) “Munition Worker” means a person who during the continuance of the war between His Majesty the King and the German Emperor and between His Majesty the King and the Emperor of Austria King of Hungary—
(i) entered into an agreement with the Commonwealth or the Minister of State for Defence to proceed to Great Britain for the purpose of—
(1) engaging in the work of producing munitions for the Imperial Government or otherwise; or
(2) serving under the Imperial Government in the Ministry of Munitions; and
(ii) engaged or served as aforesaid and whose agreement with the Commonwealth or the Minister of State for Defence was not determined by reason of his failure to observe and perform in
all respects the terms and conditions contained in the Agreement and on his part to be observed and performed or by reason of his dismissal from any work in Great Britain during the continuance of the Agreement because of any conduct of the worker which in the opinion of the said Minister was such as to justify the determination of the Agreement;
(d) “War Worker” means a person who during the continuance of the war between His Majesty the King and the German Emperor and between His Majesty the King and the Emperor of Austria King of Hungary entered into an agreement with the Commonwealth or the Minister of State for Defence to proceed to Great Britain for the purpose of engaging in work as a labourer fettler or navvy for the Imperial Government or otherwise and engaged in such work and whose agreement with the Commonwealth or the Minister of State for Defence was not determined by reason of his failure to observe and perform any term or condition contained in the Agreement and on his part to be observed and performed or by reason of his dismissal from any work in Great Britain during the continuance of the Agreement because of any conduct of the worker which in the opinion of the said Minister was such as to justify the determination of the Agreement;
(e) “Settler” means a person approved by a State as suitable for settlement upon the land in that State and who was at any time after the fourth day of August One thousand nine hundred and fourteen and before the thirty-first day of August One thousand nine hundred and twenty-one—
(i) a member of the Forces; or
(ii) a munition worker; or
(iii) a war worker; or
who is a dependant; and includes—
(1) any other person who was a soldier of the Imperial Reserve Forces called up for active service during the war between His Majesty the King and the German Emperor and between His Majesty the King and the Emperor of Austria King of Hungary; and
(2) any other person who served during the said war in the Naval or Military Forces of any part of the King’s Dominions other than the Commonwealth on active service outside that Dominion; and who was settled on the land by that State or lodged with that State an application for land on or before the thirtieth day of October One thousand nine hundred and twenty;
(f) “Home maintenance area” means such an area as when worked by an industrious settler will under average seasons and circumstances return him sufficient to meet his commitments to the State and to maintain himself and family in reasonable comfort.
Each State acknowledges to have received on loan from the Commonwealth for the purpose of settling on the land returned soldiers and their dependants and other persons being settlers as defined in this Agreement the several sums set forth with respect to that State in column two of the Schedule hereto.
The Commonwealth acknowledges to have received from each State in part repayment of the said moneys lent to that State the several sums set forth with respect to that State in column 3 of the Schedule hereto.
The Commonwealth acknowledges to have received from each State interest up to the first day of October One thousand nine hundred and twenty-five on the several sums set forth with respect to that State in column 4 of the Schedule hereto (being the balances of the several sums set forth with respect to that State in column 2 of the said Schedule after deducting from such sums respectively the several sums set forth with respect to that State in column 3 of the said Schedule) and on the sums set forth in column 3 up to the date of their repayment at the rates of interest per annum set forth in column 1 of the said Schedule opposite such balances respectively.
The Commonwealth agrees to write off and reduce as at the first day of October One thousand nine hundred and twenty-five the indebtedness of each State in respect of the several sums set forth with respect to that State in column 4 of the Schedule hereto by the several sums set forth with respect to that State in column 5 of the said Schedule.
Each State agrees to complete as far as practicable the satisfactory settlement of those persons being settlers as defined in this Agreement who are now on the land in that State particularly with respect to the provision of home maintenance areas.
In addition to the reduction effected by Clause 6 the Commonwealth agrees to write off and reduce as at the thirtieth day of June One thousand nine hundred and twenty-seven the indebtedness of each State in respect of the several sums set forth with respect to that State in column 4 of the Schedule hereto by the several further sums set forth with respect to that State in column 7 of the said Schedule and the Commonwealth acknowledges that from the thirtieth day of June 1927 the sums set forth in column 8 of the said Schedule with respect to each State are the only amounts owing by that State in respect of the sums set out with respect to that State in column 2 of the said Schedule.
Each State acknowledges—
(a)That after its indebtedness to the Commonwealth in respect of the several sums set forth with respect to that State in column 4 of the Schedule hereto has been written off and reduced by the several sums set forth with respect to that State in column 5 of the said Schedule as mentioned in Clause 6 it will then (but without prejudice to Clause 8) be indebted to the Commonwealth in the several sums set forth with respect to that State in column 6 of the said Schedule; and
(b) That after its indebtedness to the Commonwealth in respect of the several sums set forth with respect to that State in column 4 of the Schedule hereto has been written off and reduced by the several further sums set forth with respect to that State in column 7 of the said Schedule as mentioned in Clause 8 it will then be indebted to the Commonwealth in the several sums set forth with respect to that State in column 8 of the said Schedule.
(a) From the first day of October 1925 to the thirtieth day of June 1927 interest on the amount for the time being unrepaid of each of the several sums set forth with respect to that State in column 6 of the Schedule hereto; and
(b) From the first day of July 1927 to the thirty-first day of December 1930 interest on the amount for the time being unrepaid of each of the several sums set forth with respect to that State in column 8 of the Schedule hereto
at the rates of interest per annum set forth in column 1 of the said Schedule opposite the said sums respectively; and
(c) From the first day of January One thousand nine hundred and thirty one to the thirty first day of July One thousand nine hundred and thirty one interest on the amount for the time being unrepaid of each of the several sums set forth with respect to that State in column 8 of the Schedule hereto at the rate of five pounds per centum per annum in lieu of the interest at the rates set forth in column 1 of the said Schedule opposite the said sums respectively; and
(d) From the first day of August One thousand nine hundred and thirty-one to the first day of July One thousand nine hundred and thirty-three interest on the amount for the time being unrepaid of each of the several sums set forth with respect to that State in column 8 of the Schedule hereto at the rate of four pounds per centum per annum in lieu of the interest at the rates set forth in column 1 of the said Schedule opposite the said sums respectively.
Each State acknowledges that for the period of five years from the date of payment of each instalment of the moneys set forth with respect to that State in column 2 of the Schedule hereto the Commonwealth has made to that State a rebate of interest equal to two and one half per centum (2½%) per annum calculated on the full amount of the instalment.
Each State (other than the State of Queensland) acknowledges that the Commonwealth has allowed to that State interest at the rate of two and one-half per centum (2½%) per annum for the period of five years on such amount of the bonds of that State issued by that State for the purpose of placing settlers on the land as is set forth hereunder with respect to that State namely—
| £ | s. | d. | |
|---|---|---|---|
| New South Wales............................. | 348,900 | 0 | 0 |
| Victoria................................... | 2,199,631 | 19 | 3 |
| South Australia.............................. | 194,827 | 0 | 10 |
| Western Australia............................. | 106,603 | 0 | 0 |
| Tasmania.................................. | 11,936 | 8 | 1 |
(a) for the period commencing on the 1st July One thousand nine hundred and twenty-five and ending on the thirty-first day of July One thousand nine hundred and thirty-one at a reasonable rate not exceeding 3½ per centum in the first year and not exceeding in any subsequent year 3½ per centum plus ½ per centum in respect of each subsequent year after the first year but not exceeding in any case the full rate of interest payable by the State to the Commonwealth upon the money lent plus working expenses; and
(b) on and after the first day of August One thousand nine hundred and thirty-one at any rate but not exceeding in any case the rate of five per centum per annum.
(a) for the period commencing on the first day of July One thousand nine hundred and twenty-five and ending on the thirty-first day of July One thousand nine hundred and thirty-one at a rate not exceeding the rate of interest payable by the State to the Commonwealth upon the money lent plus wor
This is an opening excerpt, not the complete document.