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2013-2014
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
ACT GOVERNMENT LOAN BILL 2014
EXPLANATORY MEMORANDUM
(Circulated by the authority of the Minister for Finance,
Senator the Honourable Mathias Cormann)
Outline
ACT Government Loan Bill 2014
General Outline
1 This Explanatory Memorandum accompanies ACT Government Loan
Bill 2014 (the Bill).
2 The Government has agreed to the provision of a loan for $1 billion to the
Australian Capital Territory (ACT) for the purpose of the ACT undertaking an
asbestos remediation program (the program) and for purposes related to that
program.
3 The purpose of the Bill is to:
- provide legislative authority for the entering into an agreement to make
a loan to the ACT for an amount not exceeding $1 billion, for the
purposes of the program and for purposes related to that program;
- propose an appropriation from the Consolidated Revenue Fund (CRF)
of $750 million for the loan of money to the ACT for the purposes of
the program and for purposes related to that program.
4 As indicated, by virtue of the Bill, the Commonwealth will be able to enter
into a loan agreement with the ACT under which it agrees to pay $1 billion to the
ACT. The appropriation for payments under such an agreement for amounts in
excess of $750 million will be provided by a future appropriation Act.
Financial Impact
5 The Bill, if enacted, would appropriate the amount specified in Clause 4.
Statement of compatibility with human rights
Statement of compatibility with human rights
1 The Bill seeks to confer legislative authority on the Commonwealth to enter
into a loan agreement with the ACT for an amount not exceeding $1 billion for
the purpose of allowing the ACT to undertake an asbestos remediation program.
The Bill also appropriates the Consolidated Revenue Fund (CRF) as specified in
clause 4.
2 Given that the legal effect of the Bill is confined to these matters, the Bill is
not seen as engaging, or otherwise affecting, the rights or freedoms relevant to the
Human Rights (Parliamentary Scrutiny) Act 2011.
Notes on clauses
Notes on clauses
Part 1--Preliminary
Clause 1--Short title
1 This clause specifies that the short title of the Bill, once enacted, will be the
ACT Government Loan Act 2014.
Clause 2--Commencement
2 Clause 2 provides for the Bill to commence as an Act on the day after it
receives the Royal Assent.
Clause 3--ACT Government Loan
3 Clause 3:
(1) provides the purpose of the Act, which is for the provision of a loan to
the Australian Capital Territory (ACT) for the purposes of undertaking
an asbestos remediation program and purposes related to that program.
(2) provides that the terms and conditions of the loan are to be agreed in
writing between the Commonwealth and ACT.
(3) provides the total loan amount is to be determined by the agreement, and
must not exceed $1 billion.
(4) specifies that the loan is to be made by one or more payments, the
details of which are to be determined by the agreement.
(5) specifies that the Minister administering the Australian Capital
Territory (Self-Government) Act 1988 may enter into the agreement on
behalf of the Commonwealth. The Minister who currently administers
the above mentioned Act is the Minister of Infrastructure and Regional
Development. The appropriation will be provided to the Department of
Infrastructure and Regional Development, which will then provide the
loan to the ACT.
Clause 4--Appropriation of the Consolidated Revenue Fund
4 Clause 4 provides that the CRF is appropriated as necessary for the purposes
of the Bill, to the extent of $750 million. The appropriation will be provided as a
Non-operating: Administered assets and liabilities item.
5 The appropriation will be brought into existence on the day after it receives
Royal Assent.
6 Further payments of up to $250 million may be made available via
appropriation in the 2015-16 financial year.