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This is a Bill, not an Act. For current law, see the Acts databases.
Queensland
FINANCIAL AGREEMENT
BILL 1994
Queensland
FINANCIAL AGREEMENT BILL 1994
TABLE OF PROVISIONS
Section Page
PART 1--PRELIMINARY
1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
2 Commencement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PART 2--APPROVAL OF 1994 FINANCIAL AGREEMENT
3 Approval . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
PART 3--AMENDMENT OF FINANCIAL ADMINISTRATION
AND AUDIT ACT 1977
4 Act amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
5 Amendment of s 5 (Interpretation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Insertion of new s 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
19 Overdrawn accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
7 Amendment of s 39 (Treasurer's Annual Statement) . . . . . . . . . . . . . . . . . . 6
8 Insertion of new Pt 2 Div 7A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Division 7A--Borrowings
40A Treasurer's borrowing powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
9 Amendment of s 109 (Delegation by Treasurer) . . . . . . . . . . . . . . . . . . . . . . 6
PART 4--REPEALS
10 Repeals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
SCHEDULE . . . . . . . . . . . . . . . . . . . . . . . . . 8
1994 FINANCIAL AGREEMENT
1994
A BILL
FOR
An Act to approve an agreement between the Commonwealth, States
and Territories, and for other purposes
s1 4 s3
Financial Agreement
The Parliament of Queensland enacts-- 1
PART 1--PRELIMINARY 2
title 3
Short
1. This Act may be cited as the Financial Agreement Act 1994. 4
5
Commencement
2.(1) Sections 7 and 10 commence on a day to be fixed by proclamation. 6
(2) This section expires on the day on which sections 7 and 10 7
commence. 8
ART 2--APPROVAL OF 1994 FINANCIAL 9
P
AGREEMENT 10
11
Approval
3.(1) This section applies to the agreement between the Commonwealth, 12
States and Territories called the 1994 Financial Agreement. 13
(2) A copy of the agreement is set out in the Schedule. 14
(3) The agreement is approved. 15
s4 5 s6
Financial Agreement
PART 3--AMENDMENT OF FINANCIAL 1
ADMINISTRATION AND AUDIT ACT 1977 2
amended 3
Act
4. This Part amends the Financial Administration and Audit Act 1977. 4
of s 5 (Interpretation) 5
Amendment
5. Section 5(1), definitions "Financial Agreement" and "public debt"-- 6
omit, insert-- 7
` "Financial Agreement" means the agreement made between the 8
Commonwealth, States and Territories approved by the Financial 9
Agreement Act 1994, and includes the agreement as varied from time 10
to time. 11
"public debt" of the State has the meaning given by the Financial 12
Agreement.'. 13
of new s 19 14
Insertion
6. After section 18, in Part 2, Division 3-- 15
insert-- 16
accounts 17
`Overdrawn
`19.(1) This section applies if the net credit balance of all bank accounts 18
kept for all funds of the public accounts is overdrawn unintentionally and 19
the overdrawing is rectified as soon as practical. 20
`(2) The overdrawing is authorised by this section and the Treasurer's 21
approval is not needed. 22
`(3) This section has effect despite the following sections-- 23
· section 16 (Overdrafts) 24
· section 17 (The public bank accounts). 25
26
Example of unintentional overdrawing of accounts--
27
Each morning departments give Treasury a forecast of their cash flow for the day.
s7 6 s9
Financial Agreement
1
Treasury adds the total of the departmental forecasts to the net credit balance of all
2
bank accounts kept for all funds of the public accounts to decide the surplus or
3
deficit of cash on the day. If there is a surplus, it is invested. If the forecasts are
4
incorrect because a department receives less or withdraws more on the day than
5
anticipated, the net credit balance will be unintentionally overdrawn.'.
of s 39 (Treasurer's Annual Statement) 6
Amendment
7.(1) Section 39(2)(a)(vi)-- 7
omit, insert-- 8
`(vi) a statement of transactions of the State's account in the Debt 9
Retirement Reserve Trust Account established under the 10
Financial Agreement; and'. 11
(2) Section 39(2)(c)-- 12
renumber as section 39(2)(b). 13
of new Pt 2 Div 7A 14
Insertion
8. After section 40-- 15
insert-- 16
`Division 7A--Borrowings 17
borrowing powers 18
`Treasurer's
`40A.(1) The Treasurer may borrow amounts for the State. 19
`(2) Amounts may be borrowed within the State, outside the State but 20
within Australia or outside Australia.'. 21
of s 109 (Delegation by Treasurer) 22
Amendment
9.(1) Section 109(2)(e) to (g)-- 23
renumber as section 109(2)(f) to (h). 24
s 10 7 s 10
Financial Agreement
(2) Section 109(2)-- 1
insert-- 2
`(e) section 40A (Treasurer's borrowing powers);'. 3
PART 4--REPEALS 4
5
Repeals
10. The following Acts are repealed-- 6
· Commonwealth and States Financial Agreement Act 1927 7
18 Geo 5 No. 22 8
· Commonwealth and States Soldier Settlement Agreement and 9
Financial Agreement Amendment Approval Act 1934 25 Geo 5 10
No. 15 11
· Commonwealth and States Financial Agreement Further 12
Variation Act 1944 8 Geo 6 No. 17 13
· Commonwealth and States Financial Agreement Further 14
Variation Act 1976 No. 29. 15
8
Financial Agreement
CHEDULE 1
¡S
section 3 2
1994 FINANCIAL AGREEMENT 3
AGREEMENT made the 25th day of February One thousand nine hundred 4
and ninety four between-- 5
THE COMMONWEALTH OF AUSTRALIA of the first part; 6
THE STATE OF NEW SOUTH WALES of the second part; 7
THE STATE OF VICTORIA of the third part; 8
THE STATE OF QUEENSLAND of the fourth part; 9
THE STATE OF WESTERN AUSTRALIA of the fifth part; 10
THE STATE OF SOUTH AUSTRALIA of the sixth part; 11
THE STATE OF TASMANIA of the seventh part; 12
THE AUSTRALIAN CAPITAL TERRITORY of the eighth part; and 13
THE NORTHERN TERRITORY OF AUSTRALIA of the ninth part 14
(each of the parties of the second, third, fourth, fifth, sixth and seventh parts 15
and, in relation to clause 4, the Australian Capital Territory and the Northern 16
Territory of Australia in respect of which for the time being the Agreement 17
is in force being in this Agreement referred to as a "State" and all of those 18
parties as the context so permits or requires being in this Agreement 19
referred to as "the States"). 20
WHEREAS: 21
(A) an Agreement (in this Agreement called "the Original 22
Agreement") was made the 12th December 1927 between the 23
parties to this Agreement with respect to the public debts of the 24
States; 25
(B) the provisions of the Original Agreement (which, as varied by the 26
Supplemental Agreements, is in this Agreement called the 27
"Principal Agreement") have been varied by the following 28
9
Financial Agreement
SCHEDULE (continued)
agreements made in pursuance of section 105A of the 1
Constitution of the Commonwealth of Australia-- 2
(i) Agreement made the 1st July 1928, a copy of which is set 3
out in the Schedule to the Tasmania Sinking Fund 4
Agreement Act 1928; 5
(ii) Agreement made the 21st July 1931, a copy of which is set 6
out in the Schedule to the Debt Conversion Agreement Act 7
1931; 8
(iii) Agreement made the 22nd October 1931, a copy of which is 9
set out in the Schedule to the Debt Conversion Agreement 10
Act (No. 2) 1931; 11
(iv) Agreement made the 3rd July 1934, a copy of which is set 12
out in the Schedule to the Soldier Settlement Loans 13
(Financial Agreement) Act 1935; 14
(v) Agreement made the 15th November 1944, a copy of which 15
is set out in the Schedule to the Financial Agreement Act 16
1944; 17
(vi) Agreement made the 11th February 1966, a copy of which 18
is set out in the Schedule to the Financial Agreement Act 19
1966; and 20
(vii) Agreement made the 5th February 1976, a copy of which is 21
set out in the Schedule to the Financial Agreement Act 1976, 22
(which Agreements are in this Agreement referred to as "the 23
Supplemental Agreements"); 24
(C) the parties, other than those of the eighth and ninth parts, have 25
agreed that in pursuance of section 105A of the Constitution 26
provision as specified in this Agreement different from that in the 27
Principal Agreement should be made as to; 28
(i) the powers of the Loan Council; 29
(ii) the restriction on a State from borrowing by the issue of 30
securities in its own name in domestic and overseas 31
markets; 32
10
Financial Agreement
SCHEDULE (continued)
(iii) the requirement on the Commonwealth and on a State for 1
approval of borrowings; and 2
(iv) the power of the Commonwealth to borrow on behalf of the 3
States; and 4
(D) all the parties agree that 5
(i) the Australian Capital Territory and the Northern Territory 6
be represented on the Loan Council; 7
(ii) the Loan Council have a power to make resolutions only; 8
and 9
(iii) the Northern Territory and the Commonwealth make into 10
the Debt Retirement Reserve Trust Account the payments 11
that they would otherwise have made under the 1986 12
Arrangements; 13
NOW IT IS HEREBY AGREED as follows: 14
1(1) This Agreement, other than this clause, shall have no force or effect 15
and shall not be binding upon any party until, in respect of each party, 16
either-- 17
(a) it is signed with the prior authority of the Parliament or, in the 18
case of each Territory, the Legislative Assembly, of that party; or 19
(b) after having been signed, it is approved by the Parliament or, in 20
the case of each Territory, the Legislative Assembly, of that party. 21
(2) The Commonwealth will take, as soon as possible, all practicable 22
steps to seek the enactment of legislation relating to: 23
(a) the cessation of the National Debt Sinking Fund created by the 24
National Debt Sinking Fund Act 1966; 25
(b) the establishment of the Debt Retirement Reserve Trust Account; 26
and 27
(c) thereupon, the payment from the National Debt Sinking Fund or, 28
in the case of the Northern Territory, the Northern Territory Debt 29
Sinking Fund, into the Debt Retirement Reserve Trust Account, 30
11
Financial Agreement
SCHEDULE (continued)
but so that the payment is made to the credit of the accounts 1
established in respect of the relevant States or the Northern 2
Territory, as the case may be, of the moneys then standing to the 3
credit of the accounts in the National Debt Sinking Fund or the 4
Northern Territory Debt Sinking Fund, respectively, including 5
any later amounts which, but for the abolition of the National 6
Debt Sinking Fund or the Northern Territory Debt Sinking Fund, 7
would, when received, have been paid into the National Debt 8
Sinking Fund or the Northern Territory Debt Sinking Fund. 9
2(1) This Agreement, as varied from time to time, shall be known as 10
"the 1994 Financial Agreement". 11
(2) Upon its coming into force, clauses 7, 8, 10, 11 and 13 of this 12
Agreement shall be deemed to have commenced to operate on and from 13
1 July 1990. 14
3(1) In this Agreement, unless the contrary intention appears-- 15
"bondholder" means holder of any securities but does not include the 16
Commonwealth; 17
"face value" means-- 18
(a) in relation to securities repayable in Australian currency, the 19
principal amount, excluding any amount payable by way of 20
premium, remaining to be repaid in respect of the securities; 21
(b) in relation to securities repayable in an overseas currency, the 22
equivalent in Australian currency of the principal amount, 23
excluding any amount payable by way of premium, remaining to 24
be repaid in respect of the securities, converted at the Reserve 25
Bank of Australia selling rate to the Commonwealth Government 26
at the time of conversion or at such rate as is agreed between the 27
Commonwealth and the States; 28
"gross cost", in relation to the purchase of securities, means the amount 29
actually paid for the securities, including interest, brokerage and 30
commission; 31
"holder", in relation to securities, means owner of the securities according 32
12
Financial Agreement
SCHEDULE (continued)
to the manner in which ownership of the securities is determined; 1
"net public debt", means: 2
(a) in relation to a State, the public debt of the State less an amount 3
equal to the sum of the balance standing to the credit of the 4
State-- 5
(A) in relation to the period until the establishment of the Debt 6
Retirement Reserve Trust Account, in the Sinking Fund; and 7
(B) thereafter, in the Debt Retirement Reserve Trust Account; 8
and 9
(b) in relation to the Northern Territory, the public debt of that 10
Territory less an amount equal to the sum of the balance standing 11
to the credit of the Territory-- 12
(C) in relation to the period until the establishment of the Debt 13
Retirement Reserve Trust Account, in the Northern Territory 14
Debt Sinking Fund; and 15
(D) thereafter, in the Debt Retirement Reserve Trust Account; 16
"Premier" includes, in relation to clause 4, the Chief Minister of-- 17
(a) the Australian Capital Territory; and 18
(b) the Northern Territory of Australia, 19
as the case may be; 20
"public debt" means 21
(a) in relation to a State, the aggregate of the face value of the 22
securities issued or created by the State or issued or created in 23
respect of the State in accordance with the Principal Agreement 24
that have not been purchased, redeemed or otherwise repaid or in 25
respect of which the State has not otherwise been freed and 26
discharged from liability; and 27
(b) in relation to the Northern Territory, the aggregate of the face 28
value of the securities issued or created in respect of the Northern 29
Territory in accordance with the 1986 Arrangements that have not 30
been purchased, redeemed or otherwise repaid or in respect of 31
13
Financial Agreement
SCHEDULE (continued)
which the Northern Territory has not otherwise been freed and 1
discharged from liability; 2
"securities" means-- 3
(a) where the context involves a State; 4
Inscribed Stock and Bonds 5
Instalment Stock 6
Registered Stock 7
Funded Stock 8
Stock payable to bearer 9
Special Bonds 10
Australian Savings Bonds 11
which were issued or created by a State and taken over by the 12
Commonwealth under the Principal Agreement or issued or created in 13
respect of a State; and 14
(b) where the context involves the Northern Territory; 15
Inscribed Stock and Bonds 16
Registered Stock 17
Stock payable to bearer 18
Australian Savings Bonds 19
which were issued or created in respect of the Northern Territory under 20
the 1986 Arrangements; 21
"the Commission" means the National Debt Commission continued in 22
existence by the National Debt Sinking Fund Act 1966; 23
"the Loan Council" means the Australian Loan Council continued in 24
existence pursuant to this Agreement; 25
"the Sinking Fund" means the National Debt Sinking Fund created by the 26
National Debt Sinking Fund Act 1966; and 27
"the 1986 Arrangements" means the Arrangements entered into between 28
the Commonwealth of Australia and the Northern Territory dated the 29
14
Financial Agreement
SCHEDULE (continued)
26th May 1986 under which, among other things, there was created 1
the Northern Territory Debt Sinking Fund within the Commonwealth 2
Trust Fund. 3
(2) In this Agreement-- 4
(a) a reference to a year is, unless the contrary intention appears, a 5
reference to a financial year commencing on a 1st July; 6
(b) the expression "in writing" includes any mode of representing or 7
reproducing words and figures in a written form; and 8
(c) except where inconsistent with the context, words in the singular 9
include the plural and words in the plural include the singular. 10
4(1) The Australian Loan Council created under the Principal Agreement 11
is continued in existence hereunder but so that it shall consist of one 12
representative of the Commonwealth who shall be-- 13
(a) the Prime Minister of the Commonwealth; or 14
(b) a Minister or other person nominated in writing by the Prime 15
Minister, 16
and one representative of each State who shall be-- 17
(c) the Premier of that State; or 18
(d) a Minister or other person nominated in writing by the Premier of 19
that State, 20
provided that the nomination of the Minister shall be deemed to 21
include another Minister of the Commonwealth or of the State, as the 22
case may be, who is for the time being acting for the Minister 23
nominated and references in this clause to a representative shall be read 24
so as to include a Minister who is so acting. 25
(2) Any nomination of a substitute representative of the Commonwealth 26
or of a State shall be tabled at the meeting of the Loan Council next 27
succeeding the nomination. 28
(3) The representative of the Commonwealth on the Loan Council shall 29
15
Financial Agreement
SCHEDULE (continued)
hold office during the pleasure of the Prime Minister of the Commonwealth 1
and a representative of a State shall hold office during the pleasure of his or 2
her Premier. 3
(4) The representative of the Commonwealth shall be the Chairman of 4
the Loan Council. 5
(5) A decision in which all the representatives for the time being of the 6
Loan Council concur shall be not affected by any vacancy then existing 7
among the representatives. 8
(6) A meeting of the Loan Council may at any time be convened by the 9
representative of the Commonwealth, and shall be so convened upon the 10
request of at least four State representatives. 11
(7) A majority of the representatives of the Loan Council shall constitute 12
a quorum of the Loan Council for the exercise of its powers at any meeting, 13
provided that-- 14
(a) a representative may at any time appoint in writing a deputy to act 15
in his absence, and any deputy so appointed may in the absence 16
of the representative exercise all the powers and functions of the 17
representative and his or her presence shall be deemed the 18
presence of the representative; and 19
(b) an absent representative who has not appointed a deputy may vote 20
by letter, telegram, or by facsimile and in such case that 21
representative shall be counted as being present in relation only to 22
the questions on which he or she has voted. 23
(8) The Loan Council may make rules of procedure including rules 24
relating to places, times, and notices of meetings, and conduct of business at 25
meetings, including voting on a resolution and from time to time may alter 26
such rules. 27
(9) The Loan Council may make resolutions, which are not to operate as 28
they would have operated had clause 3(15) of the original Agreement not 29
been rescinded, in relation to-- 30
(a) borrowings; 31
(b) raisings; and 32
16
Financial Agreement
SCHEDULE (continued)
(c) other financial arrangements 1
by the Commonwealth, a State, a local governing body or any entity 2
owned or controlled wholly or as to a major part by any of them, save 3
for any of the foregoing excepted from time to time by the Loan 4
Council. 5
(10) In this clause the expressions "Prime Minister" and "Premier" 6
include the persons for the time being respectively acting as such. 7
5(1) Subject to this clause the Commonwealth will continue to pay to 8
bondholders from time to time interest payable on the Public Debts of the 9
States taken over by the Commonwealth under the Principal Agreement 10
other than debts due by the States to the Commonwealth. 11
(2) Each State shall continue to pay in each year to the Commonwealth, 12
as it falls due, the whole of the interest on any debt included in the public 13
debt of that State taken over by the Commonwealth under the Principal 14
Agreement, and on any moneys borrowed by the Commonwealth under the 15
Principal Agreement on behalf of that State, then unpaid. 16
(3) The Northern Territory shall continue to pay in each year to the 17
Commonwealth, as it falls due, the whole of the interest on any moneys 18
borrowed by the Commonwealth on behalf of the Northern Territory under 19
the 1986 Arrangements then unpaid. 20
(4) The method by which payments shall be made by a State under 21
sub-clause (2) or the Northern Territory under sub-clause (3) of this clause 22
shall be arranged from time to time between the Commonwealth and, 23
respectively, that State or the Northern Territory. 24
(5) The rate of interest payable under sub-clause (2) of this clause in 25
respect of moneys borrowed by the Commonwealth on behalf of a State 26
shall be the full rate of interest payable by the Commonwealth in respect of 27
the loan by which such moneys were borrowed or such other rate of interest 28
as may be payable by the State to the Commonwealth under any agreement 29
made or to be made between the Commonwealth and that State in respect of 30
such moneys and such interest shall be payable by that State for the full 31
term of that loan. 32
17
Financial Agreement
SCHEDULE (continued)
(6) The rate of interest payable under sub-clause (3) of this clause in 1
respect of moneys borrowed by the Commonwealth on behalf of the 2
Northern Territory shall be the full rate of interest payable by the 3
Commonwealth in respect of the loan by which such moneys were 4
borrowed or such other rate of interest as may be payable by the Northern 5
Territory to the Commonwealth under any agreement made or to be made 6
between the Commonwealth and the Northern Territory in respect of such 7
moneys and such interest shall be payable by the Northern Territory for the 8
full term of that loan. 9
6(1) There shall be a trust account to be called the "Debt Retirement 10
Reserve Trust Account". 11
(2) The Commonwealth shall establish and maintain a separate account 12
in the Debt Retirement Reserve Trust Account in respect of each State. 13
(3) The Commonwealth shall establish and maintain a separate account 14
in the Debt Retirement Reserve Trust Account in respect of the Northern 15
Territory. 16
(4) There shall be paid by the Commonwealth into each of those 17
accounts in the Debt Retirement Reserve Trust Account established under 18
sub-clause 6(2): 19
(a) amounts equal to the amounts received from the State under 20
sub-clause 7(2); and 21
(b) amounts being the contributions by the Commonwealth under 22
clause 8. 23
(5) There shall be paid by the Commonwealth into the accounts in the 24
Debt Retirement Reserve Trust Account established under sub-clause 6(3): 25
(a) amounts equal to the amounts received from the Northern 26
Territory under sub-clause 7(3); and 27
(b) amounts being the contributions by the Commonwealth under 28
clause 8. 29
(6) Moneys standing to the credit of an account established in respect of a 30
State in the Debt Retirement Reserve Trust Account shall be applied by the 31
Commonwealth in connection with the purchase, redemption, including 32
18
Financial Agreement
SCHEDULE (continued)
redemption on conversion, and repayment of securities of that State. The 1
gross cost, in the case of purchase, or the cost at face value, in the case of 2
redemption or repayment, shall be charged to the account established in 3
respect of that State in the Debt Retirement Reserve Trust Account. 4
(7) Moneys standing to the credit of the account established in respect of 5
the Northern Territory in the Debt Retirement Reserve Trust Account shall 6
be applied by the Commonwealth in connection with the purchase, 7
redemption, including redemption on conversion, and repayment of 8
securities of the Northern Territory. The gross cost, in the case of purchase, 9
or the cost at face value, in the case of redemption or repayment, shall be 10
charged to the account established in respect of that Territory in the Debt 11
Retirement Reserve Trust Account. 12
(8) Moneys standing to the credit of an account established in respect of a 13
State in the Debt Retirement Reserve Trust Account will be held within the 14
Commonwealth Public Account established pursuant to paragraph 21(1)(a) 15
of the Audit Act 1901 or that provision as amended, modified or re-enacted 16
from time to time. An amount equal to interest earned on that part of the 17
balances in the Commonwealth Public Account attributable to the credit 18
balance in the account established in respect of a State within the Debt 19
Retirement Reserve Trust Account shall be added to the moneys standing to 20
the credit of that account. 21
(9) Moneys standing to the credit of the account established in respect of 22
the Northern Territory in the Debt Retirement Reserve Trust Account will 23
be held within the Commonwealth Public Account established pursuant to 24
paragraph 21(1)(a) of the Audit Act 1901 or that provision as amended, 25
modified or re-enacted from time to time. An amount equal to interest 26
earned on that part of the balances in the Commonwealth Public Account 27
attributable to the credit balance in the account established in respect of the 28
Northern Territory within the Debt Retirement Reserve Trust Account shall 29
be added to the moneys standing to the credit of that account. 30
(10) When securities of a State or of the Northern Territory are 31
purchased, redeemed or repaid, the securities shall be deemed to have been 32
cancelled on the date of the purchase, redemption or repayment. 33
7(1) Each State shall, in respect of the public debt of the State, pay by 34
19
Financial Agreement
SCHEDULE (continued)
equal monthly instalments during each year commencing on 1 July 1990 or 1
in such other amounts as are determined by agreement between the 2
Commonwealth and the relevant State a contribution calculated in respect of 3
that year as provided in this clause. 4
(2) Each State shall pay the contribution in respect of each year-- 5
(a) in respect of the period from 1 July 1990 until the establishment 6
of the Debt Retirement Reserve Trust Account, to the 7
Commission for credit to the account of the State in the Sinking 8
Fund, and 9
(b) thereafter, to the Commonwealth for credit to the account 10
established in respect of the State in the Debt Retirement Reserve 11
Trust Account 12
such that the contribution, together with-- 13
(c) in the case of the period referred to in paragraph (a), 14
(i) amounts of interest referred to in sub-clause 12A(7) of the 15
Principal Agreement, preserved by sub-clause 16(2), in 16
respect of the relevant year or, where the Debt Retirement 17
Reserve Trust Account has operated for only part of the 18
year, the other part of that year; 19
(ii) contributions by the Commonwealth pursuant to clause 8 as 20
it relates to the State in respect of the relevant year or, where 21
the Debt Retirement Reserve Trust Account has operated for 22
only part of the year, the other part of that year; and 23
(iii) the moneys standing to the credit of an account in respect of 24
the State in the Sinking Fund as at the commencement of 25
that year including where the Debt Retirement Reserve Trust 26
Account has operated for only part of the year; and 27
(d) in the case of the period referred to in paragraph (b), 28
(i) amounts equal to interest referred to in sub-clause 6(8) in 29
respect of the relevant year, or where the Debt Retirement 30
Reserve Trust Account has operated for only part of the 31
year, the interest referred to in sub-clause 6(8) for that part of 32
that year; 33
20
Financial Agreement
SCHEDULE (continued)
(ii) contributions by the Commonwealth pursuant to clause 8 in 1
respect of the relevant year or where the Debt Retirement 2
Reserve Trust Account has operated for only part of the 3
year, the contribution made into the Debt Retirement 4
Reserve Trust Account for that part of the year; and 5
(iii) the moneys standing at the commencement of the relevant 6
year to the credit of an account in respect of the State in the 7
Debt Retirement Reserve Trust Account, 8
is equal to the total of those parts of its public debt which 9
falls to be redeemed or is repaid or purchased in that year, or 10
any greater amount which the State elects to have redeemed, 11
repaid or purchased in that year, but so that in any event that 12
contribution shall not be less than an amount equal to 13
0.85 per centum of the net public debt of the State as at the 14
30th June immediately preceding the year in which the 15
contribution is payable. 16
(3) The Northern Territory shall pay a contribution in respect of each 17
year-- 18
(a) in respect of the period from 1 July 1990 until the establishment 19
of the Debt Retirement Reserve Trust Account, to the 20
Commonwealth for credit to the Northern Territory Debt Sinking 21
Fund; and 22
(b) thereafter, to the Commonwealth for credit to the account 23
established in respect of the Northern Territory in the Debt 24
Retirement Reserve Trust Account 25
such that the contribution, together with-- 26
(c) in the case of the period referred to in paragraph (a), 27
(i) amounts of interest which would have been payable under 28
the 1986 Arrangements in respect of the relevant year or, 29
where the Debt Retirement Reserve Trust Account has 30
operated for only part of the year, the other part of that year; 31
(ii) contributions by the Commonwealth pursuant to clause 8 as 32
it relates to the Territory in respect of the relevant year or, 33
21
Financial Agreement
SCHEDULE (continued)
where the Debt Retirement Reserve Trust Account has 1
operated for only part of the year, the other part of that year; 2
and 3
(iii) the moneys standing to the credit of the Northern Territory 4
Debt Sinking Fund as at the commencement of that year 5
including where the Debt Retirement Reserve Trust Account 6
has operated for only part of the year; and 7
(d) in the case of the period referred to in paragraph (b), 8
(i) amounts equal to interest referred to in sub-clause 6(9) in 9
respect of the relevant year or, where the Debt Retirement 10
Reserve Trust Account has operated for only part of the 11
year, the interest referred to in sub-clause 6(9) for that part of 12
that year; 13
(ii) contributions by the Commonwealth pursuant to clause 8 in 14
respect of the relevant year or, where the Debt Retirement 15
Reserve Trust Account has operated for only part of the 16
year, the contribution made into the Debt Retirement 17
Reserve Trust Account for that part of the year; and 18
(iii) the moneys standing at the commencement of the relevant 19
year to the credit of the account in respect of the Northern 20
Territory in the Debt Retirement Reserve Trust Account, 21
is equal to the total of those parts of its public debt which falls to 22
be redeemed or is repaid or purchased in that year or any greater 23
amount which the Northern Territory elects to have redeemed, 24
repaid or purchased in that year, but so that in any event that 25
contribution shall not be less than an amount equal to 26
0.85 per centum of the net public debt of the Northern Territory 27
as at the 30th June immediately preceding the year in which the 28
contribution is payable. 29
8(1) The Commonwealth shall, in respect of the public debt of each State 30
and of the Northern Territory, pay for credit to the account of the State in the 31
National Debt Sinking Fund and that Territory in the Northern Territory 32
Debt Sinking Fund by equal monthly instalments during each year 33
22
Financial Agreement
SCHEDULE (continued)
commencing 1 July 1990 or in such other amounts as are determined by 1
agreement between the Commonwealth and the relevant State or the 2
Commonwealth and the Northern Territory, as the case may be, a 3
contribution calculated in respect of that year as provided in this clause. 4
(2) The Commonwealth shall pay a contribution in respect of each of 5
those years in relation to the public debt of a State and in relation to the 6
public debt of the Northern Territory that is equivalent to 0.28 per centum of 7
the net public debt of the State or the Northern Territory, as the case may be, 8
at the 30th June immediately preceding the year in which the contribution is 9
payable. 10
(3) On and from the establishment of the Debt Retirement Reserve Trust 11
Account the contribution payable by the Commonwealth under this clause 12
in respect of the States and the Northern Territory shall be paid into that 13
Account. 14
9 The contributions payable after the establishment of the Debt 15
Retirement Reserve Trust Account by the Northern Territory under 16
sub-clause 7(3) shall be: 17
(a) in respect of so much of the year ending on 30 June next 18
following the establishment of the Debt Retirement Reserve Trust 19
Account; and 20
(b) in respect of each succeeding year, 21
of equal monthly instalments during the period referred to in 22
paragraph (a) or during the year referred to in paragraph (b) or of such 23
other amounts as are determined by agreement between the 24
Commonwealth and the Northern Territory. 25
10 The Commonwealth shall reimburse, in such amounts and at such 26
times as agreed between the Commonwealth and the State, each State for 27
the excess, as assessed by agreement between the Commonwealth and the 28
State, of the amount of the costs to the State incurred from 1 July 1990 in 29
respect of the redemption, repayment and purchase, by the Commonwealth 30
of the securities from that date over the amount of the costs that would have 31
been so incurred under the Principal Agreement. 32
23
Financial Agreement
SCHEDULE (continued)
11 The Commonwealth shall reimburse, in such amounts and at such 1
times as agreed between the Commonwealth and the Northern Territory, 2
that Territory for the excess, as assessed by agreement between the 3
Commonwealth and that Territory, of the amount of the costs to that 4
Territory incurred from 1 July 1990 in respect of the redemption, 5
repayment and purchase, by the Commonwealth of the securities from that 6
date over the amount of the costs that would have been so incurred under 7
the 1986 Arrangements. 8
12(1) Each State and the Northern Territory shall repay to the 9
Commonwealth all expenses incurred or payments made by the 10
Commonwealth in the performance of this Agreement in relation to the 11
State and the Northern Territory, including the following expenses and 12
payments:-- 13
(a) Loan flotation charges; 14
(b) Management charges; 15
(c) Stamp duties on transfer of securities; 16
(d) Commission on payment of interest; 17
(e) Expenses incurred in the conversion, renewal, redemption or 18
consolidation of loans; and 19
(f) Exchange on transference of moneys. 20
(2) Unless it is otherwise agreed between the Commonwealth and a 21
State, the Commonwealth will not do anything in connection with a loan of 22
that State existing on the 30th June, 1927, or raised thereafter pursuant to 23
the Principal Agreement, which, if done by that State, would be a breach of 24
any now existing agreement by that State with any Bank. 25
(3) A certificate by the Auditor-General of the Commonwealth stating 26
the amount to be repaid by a State to the Commonwealth and the matter in 27
respect of which the repayment is to be made shall, in the event of a dispute, 28
be conclusive as to the amount and matter stated. 29
13 Each State agrees with the Commonwealth that it will by the faithful 30
24
Financial Agreement
SCHEDULE (continued)
performance of its obligations under this Agreement indemnify the 1
Commonwealth against all liabilities whatsoever in respect of the public 2
debt of that State (other than the liabilities of the Commonwealth under this 3
Agreement to pay interest and to make sinking fund contributions or, after 4
its establishment, contributions to the Debt Retirement Reserve Trust 5
Account), not falling payable under the Principal Agreement prior to the 6
1 July 1990 in respect of which this Agreement provides that sinking fund 7
contributions or, after its establishment, contributions to the Debt 8
Retirement Reserve Trust Account shall be made. 9
14 The Northern Territory agrees with the Commonwealth that it will by 10
the faithful performance of its obligations under this Agreement indemnify 11
the Commonwealth against all liabilities whatsoever in respect of all loans 12
of that Territory for which this Agreement provides that, after its 13
establishment, contributions to the Debt Retirement Reserve Trust Account 14
shall be made. 15
15 Separate accounts shall be kept by the Commonwealth for each State 16
and, so far as relevant, for the Northern Territory in respect of Debt, 17
Interest, and Sinking Funds or, after its establishment, contributions for the 18
purposes of the Debt Retirement Reserve Trust Account. 19
16(1) This Agreement rescinds the Principal Agreement, except as 20
provided by this clause, but with effect from the date on which this 21
Agreement, other than Clauses 7, 8, 10, 11 and 13, comes into effect. 22
(2) Sub-clauses 12A(1), (2) and (4) to (12), inclusive, of the Principal 23
Agreement continue to operate until the date on which the Debt Retirement 24
Reserve Trust Account is established and, for the purposes of their 25
continued operation, references in sub-clause 12A(9) of the Principal 26
Agreement to clauses 12B and 12C are taken to be references to clauses 7 27
and 8, respectively, of this Agreement. 28
(3) This Agreement rescinds, with effect from the date referred to in 29
sub-clause (1), the provisions of the 1986 Arrangements in relation to debt 30
outstanding as at 1 July 1990, being debt arising from securities the subject 31
25
Financial Agreement
SCHEDULE (continued)
of those Arrangements issued or created in respect of the Northern Territory 1
by the Commonwealth. 2
IN WITNESS WHEREOF this agreement has been signed for and on 3
behalf of the parties respectively as at the day and year first above written. 4
5
26
Financial Agreement
SIGNED by the Honourable PAUL JOHN } 1
KEATING, Prime Minister of the } 2
*Signature omitted
Commonwealth of Australia, in the } 3
presence of Dr Michael Keating }
SIGNED by the Honourable JOHN } 4
JOSEPH FAHEY, Premier of the State of } 5
*Signature omitted
New South Wales, in the presence of } 6
Mr Roger Wilkins }
SIGNED by the Honourable JEFFREY } 7
GIBB KENNETT, Premier of the State of } 8
*Signature omitted
Victoria, in the presence of Mr Ken Baxter }
SIGNED by the Honourable WAYNE } 9
KEITH GOSS, Premier of the State of } 10
*Signature omitted
Queensland, in the presence of } 11
Mr Kevin Rudd
SIGNED by the Honourable RICHARD } 12
FAIRFAX COURT, Premier of the State } 13
*Signature omitted
of Western Australia, in the presence of } 14
Mr Don Saunders }
SIGNED by the Honourable DEAN } 15
CRAIG BROWN, Premier of the State of } 16
*Signature omitted
South Australia, in the presence of } 17
Mr Michael Schilling }
SIGNED by the Honourable RAYMOND } 18
JOHN GROOM, Premier of the State of } 19
*Signature omitted
Tasmania, in the presence of Dr Dan } 20
Norton }
SIGNED by ROSEMARY FOLLETT, } 21
Chief Minister of the Australian Capital } 22
*Signature omitted
Territory, in the presence of Dr David } 23
Rosalky }
SIGNED by the Honourable MARSHALL } 24
BRUCE PERRON, Chief Minister of the } *Signature omitted 25
Northern Territory, in the presence of } 26
Dr Neil Conn }
27
Financial Agreement
© State of Queensland 1994
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