Tasmanian Bills Fact Sheets Tasmanian Bills Fact Sheets[Index] [Search] [Download] [Bill] [Help]
FACT SHEET
Treasury (Borrowing) Bill 2016
Tasmanian Appropriation Acts typically contain a standard clause to enable the Treasurer to
borrow such money as may be required for the purposes of the State.
A concern has been raised by a member of the Legislative Council that the standard form of
borrowing power included in Appropriation Acts might not be effective, having regard to
section 40 of the Constitution Act 1934.
The Constitution Act provides that a Bill for an Appropriation Act shall not deal with any
matter other than the issue, application and appropriation of money out of the Consolidated
Fund.
Legal advice has been obtained from the Solicitor-General of Tasmania in relation to the
concerns raised.
It is the Government’s view that the law is not clear but that, in order to comply with the
general principles set out in the Constitution Act, it is sensible for any borrowing powers to be
included in a separate enactment.
It is the purpose of this Bill to ensure that borrowing powers are explicitly conferred by
legislative authority.
The Government considers that the authority conferred by this Bill should be limited, consistent
with past practice having regard to the annual nature of Appropriation Bills, and that the
authority should expire on 3 July 2017. This will provide the Treasurer with borrowing powers
sufficient to enable the end of year borrowing to be undertaken on both 30 June 2016 and 30
June 2017.
It is the Government’s view that any uncertainty in relation to the validity of past borrowings
should also be removed. This Bill includes a clause to remove doubts and validate any affected
past borrowings.
Page 1 of 1