Commonwealth act

States Loan Act 1925

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

6 of 1925

Collection

act

Plain English Summary

2/10 complexity

The States Loan Act 1925 let the Commonwealth borrow centrally on behalf of Australian States, convert State debts into Commonwealth securities, and provide short-term advances pending loan proceeds, with principal and interest charged to the Consolidated Revenue Fund. It affected State and Commonwealth finances, holders of State loans, and taxpayers, and marks an early step toward centralising public debt management in Australia.

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Current sections

Direct links to the current provisions in States Loan Act 1925.

States Loan Act 1925

STATES LOAN.

No. 6 of 1925.

An Act to authorize the raising of Moneys to be loaned to the States and for other purposes.

[Assented to 13th July, 1925.]

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 States Loan Act 1925.

Agreements with States.

The Treasurer of the Commonwealth may enter into an agreement with the Treasurer of any State, providing—

(a) for the borrowing by the Commonwealth, on behalf of any State, of such amounts as are declared by that agreement to be necessary for the general loan purposes of that State, and have been or may be authorized by the Parliament of the State up to the thirtieth day of June One thousand nine, hundred and twenty-six;

(b) the terms and conditions upon which loans may be made to the State under this Act;

(c) for the conversion into a Commonwealth loan, or for the redemption, of any State loan falling due on or before the first day of July One thousand nine hundred and twenty-six; and

(d) the terms and conditions upon which the conversion or redemption of any State loan may be effected.

Authority to borrow moneys.

The Treasurer may, from time to time, under the provisions of the Commonwealth Inscribed Stock Act 1911–1918, or under the provisions of any Act authorizing the issue of Treasury Bills, borrow-moneys to such amounts as are specified in any agreement made in pursuance of section two of this Act.

Application of moneys.

Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing, and for making loans to the States and redeeming State loans in accordance with section two of this Act.

Power to make advances to States pending raising of loans.

5.—(1.) Pending the borrowing of moneys in pursuance of this Act, the Treasurer may, from time to time, advance to the States out of any moneys in the Commonwealth Public Account, sums not exceeding the moneys which may be borrowed in pursuance of this Act.

(2.) Any moneys so advanced shall be repayable to the Commonwealth from the proceeds of any loan raised in pursuance of this Act after the moneys have been advanced.

Conversion of State securities into Commonwealth securities.

The Treasurer may, for the purposes of any agreement made in pursuance of this Act, convert into a Commonwealth security any State security falling due on or before the first day of July One thousand nine hundred and twenty-six.

Principal moneys and interest charged on Consolidated Revenue Fund.

The principal money of any security issued in accordance with this Act or the States Loan Act 1924 and the interest thereon shall be a charge on, and payable out of, the Consolidated Revenue Fund, which is hereby appropriated for the purpose.

Regulations.

The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act.

Source text

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

1 States Loan Act 1925