Commonwealth act

Trust Fund Advances Act 1910 (No. 2)

RepealedCTH

This Act has been repealed and is no longer in force. It is retained for historical reference.

Jurisdiction

Commonwealth

Act Number

15 of 1910

Collection

act

Plain English Summary

1/10 complexity

This Act allows the government to borrow money from itself to manage cash flow. Specifically, it lets the Treasurer take up to £1,500,000 from the Trust Fund (a government savings/investment account) and move it into the Consolidated Revenue Fund (the main bank account used for day-to-day government spending).

Key conditions:

Source restriction: The money can't come from reserves held for Australian banknotes (currency reserves required under the Australian Notes Act 1910)
Repayment deadline: The full amount must be paid back by 30 June 1911
Interest: 3% per year interest applies, and this interest goes into the Australian Notes Account
Legal protections: This loan doesn't cancel out any other legal requirements for the Treasurer to hold financial reserves

In modern terms, this is equivalent to a short-term internal transfer from a term deposit to a transaction account, with strict rules about repayment.

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Current sections

Direct links to the current provisions in Trust Fund Advances Act 1910 (No. 2).

Trust Fund Advances Act 1910 (No. 2)

TRUST FUND ADVANCES (No. 2).

No. 15 of 1910.

An Act to authorize a Temporary Advance from the Trust Fund to the Consolidated Revenue Fund.

[Assented to 21st October, 1910.]

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 Trust Fund Advances Act 1910 (No. 2).

Advance from Trust Fund.

There may be advanced from the Trust Fund for the purposes of the Revenue out of moneys not held for the purposes of the Reserve mentioned in section nine of the Australian Notes Act 1910 an amount not exceeding One million five hundred thousand pounds.

Repayment of advance.

3.—(1.) Any amount so advanced shall be repaid to the Trust Fund with interest at the rate of three per centum per annum on or before the thirtieth day of June One thousand nine hundred and eleven and the Consolidated Revenue Fund is hereby appropriated for that purpose accordingly.

(2.) The interest payable in pursuance of this section shall be paid to and form part of the Australian Notes Account.

Act not to affect reserves.

Nothing in this Act shall affect any obligation on the part of the Treasurer to hold any reserve which he is by law required to hold in relation to any Trust Account or any part of the Trust Fund.

Source text

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

1 Trust Fund Advances Act 1910 (No. 2)