House of Representatives

Explanatory Memorandum

(Circulated by authority of the Minister for Finance and Administration, Senator the Honourable Nick Minchin)

Notes on Schedule 1, Part 14

46. A general explanation of the amendments proposed in Part 1 of Schedule 1 is provided under the heading above to Section III of this Explanatory Memorandum, "Overview of Amendments Proposed in Schedule 1 of the FFLA Bill".

Item 1 - Acts Interpretation Act 1901

47. Item 1 repeals paragraph 17(ka). The paragraph defines the Loan Fund, which was abolished by the FMLA Act 99.

Items 2 and 3 - Higher Education Funding Act 1988

48. Item 2 repeals section 114. Section 114 provides that certain payments to an institution or other body may be made out of the CRF and/or the Loan Fund. With the abolition of the Loan Fund there is no need to specify the Fund from which payments are made. All payments are made from the CRF.

49. Item 2 also repeals section 117. Subsection (1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

50. Item 3 amends subsection 118(1) by omitting the reference to "and the Loan Fund are". The first part of the amended subsection is: "The Consolidated Revenue Fund is, by force of this subsection, appropriated as necessary ... ".

Items 4 to 6 - Housing Assistance Act 1978

51. Items 4 and 5 amend sections 8 and 9, respectively, by:

•

replacing the reference, in section 8, to "making payments to the Consolidated Revenue Fund in accordance with section 10" with "making payments and advances to the States for the purposes of this Part";

•

replacing the reference, in section 9, to "making payments to the Consolidated Revenue Fund in accordance with section 10, and the Loan Fund is appropriated, as necessary, for those purposes" with "making payments and advances to the States for the purposes of this Part".

52. Both sections are included in Part II of the Act which covers Housing Agreements with the States. Section 10 is repealed by Item 6. The adoption of a self-executing CRF, with the commencement of the FMLA Act 99, means that amounts borrowed by the Treasurer under section 8 automatically form part of the CRF.

53. Item 6 repeals section 10. Subsection 10(1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection 10(2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

Items 7 to 9 - Housing Assistance Act 1981

54. Items 7 and 8 amend sections 12 and 13, respectively, by:

•

replacing the reference, in section 12, to "making payments to the Consolidated Revenue Fund in accordance with section 14" with "making payments and advances to the States for the purposes of this Act";

•

replacing the reference, in section 13, to "making payments to the Consolidated Revenue Fund in accordance with section 14, and the Loan Fund is appropriated, as necessary, for those purposes" with "making payments and advances to the States for the purposes of this Act".

55. Section 14 is repealed by Item 9. The introduction of a self-executing CRF, with the commencement of the FMLA Act 99, means that amounts borrowed by the Treasurer under section 12 automatically form part of the CRF.

56. Item 9 repeals section 14. Subsection 14(1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection 14(2) is dependent on action taken in subsection (1). The Loan Fund is abolished; hence the section is redundant.

Items 10 to 12 - Housing Assistance Act 1984

57. Items 10 and 11 amend sections 13 and 14, respectively, by:

•

replacing the reference, in section 13, to "making payments to the Consolidated Revenue Fund in accordance with section 15" with "making payments and advances to the States for the purposes of this Act";

•

replacing the reference, in section 14, to "making payments to the Consolidated Revenue Fund in accordance with section 15, and the Loan Fund is appropriated, as necessary, for those purposes" with "making payments and advances to the States for the purposes of this Act".

58. Section 15 is repealed by Item 12. The adoption of a self-executing CRF, with the commencement of the FMLA Act 99, means that amounts borrowed by the Treasurer under section 13 automatically form part of the CRF.

59. Item 12 repeals section 15. Subsection 15(1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection 15(2) is dependent on action taken in subsection (1). The Loan Fund is abolished; hence the section is redundant.

Items 13 to 15 - Loan (Temporary Revenue Deficits) Act 1953

60. Item 13 repeals section 3. The section provides for the Finance Minister to expend moneys standing to the credit of the Loan Fund for the purposes of any appropriation when the receipts of the CRF are insufficient to meet expenditure from that Fund. The Loan Fund is abolished; hence the section is redundant.

61. Items 14 and 15 amend section 4 by:

•

replacing the reference to "moneys standing to the credit of the Loan Fund" with "amounts in the Consolidated Revenue Fund";

•

omitting the reference to "under the last preceding section".

Item 16 - Loans (Australian Industry Development Corporation) Act 1974

62. Item 16 amends subsection 7(4) by replacing the reference to "payable out of the Loan Fund" with "payable out of the Consolidated Revenue Fund."

Items 17 to 21 - Sewerage Agreements Act 1973

63. Item 17 amends section 4 by omitting the reference to "or out of the Loan Fund". The amended section provides for payments and advances out of the CRF.

64. Items 18 and 19 amend section 6 by:

•

replacing the reference to "borrowing," with "borrowing and"; and

•

omitting the reference to "and for the purpose of making payments to the Consolidated Revenue Fund in accordance with section 7".

65. Item 20 repeals section 7; hence the reference being omitted in section 6 is redundant. The amended section 6 is: "Moneys borrowed under section 5 shall be issued and applied only for the expenses of borrowing and for the purpose of making payments and advances to the States in accordance with this Act."

66. Item 20 repeals section 7. Subsection (1) provides that the Treasurer may authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

67. Item 21 amends section 8 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act."

Items 22 to 26 - Sewerage Agreements Act 1974

68. Item 22 amends section 6 by deleting the reference to the Loan Fund. The amended section provides for payments and advances out of the CRF.

69. Items 23 and 24 amend section 8 by:

•

replacing the reference, in subsection (1), to "borrowing," with "borrowing and";

•

omitting the references, in subsections (1) and (2), to "and for the purpose of making Payments to the Consolidated Revenue Fund in accordance with section 9".

70. Item 25 repeals section 9; hence the references being omitted in subsections 8(1) and (2) are redundant. The amended subsection 8(1) is: "Moneys borrowed under section 7 shall be issued and applied only for the expenses of borrowing and for the purpose of making payments and advances to a State to which this Act applies in accordance with this Act".

71. Item 25 repeals section 9. Subsection (1) provides that the Finance Minister may authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

72. Item 26 amends section 10 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act."

Items 27 and 28 - States Grants (Primary and Secondary Education Assistance) Act 1992

73. Item 27 repeals sections 112 and 115.

•

Section 112 provides that certain payments may be made out of the CRF or the Loan Fund. With the abolition of the Loan Fund there is no need to specify the Fund from which payments are made. All payments are made from the CRF.

•

Section 115(1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

74. Item 28 amends section 116 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 29 and 30 - States Grants (Primary and Secondary Education Assistance) Act 1996

75. Item 29 repeals sections 84 and 87.

•

Section 84 provides that certain payments may be made out of the CRF or the Loan Fund. With the abolition of the Loan Fund there is no need to specify the Fund from which payments are made. All payments are made from the CRF.

•

Subsection 87(1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

76. Item 30 amends section 88 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 31 to 35 - States (Works and Housing) Assistance Act 1982

77. Item 31 amends section 9, and the heading of section 9, by omitting the references to "or the Loan Fund".

78. Items 32 and 33 amend section 11 by:

•

replacing the reference to "borrowing," with "borrowing and";

•

omitting the reference to "and for the purposes of making payments to the Consolidated Revenue Fund in accordance with section 12".

79. Item 34 repeals section 12; hence the reference being omitted in section 11 is redundant. The amended section 11 is: "Moneys borrowed under sub-section 10(1) shall be issued and applied only for the expenses of borrowing and for the purposes of making payments to the States and the Northern Territory in accordance with this Act."

80. Item 34 repeals section 12. Subsection (1) provides that the Finance Minister may authorise the reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

81. Item 35 amends section 13 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 36 to 40 - States (Works and Housing) Assistance Act 1983

82. Item 36 amends section 14, and the heading of section 14, by omitting the references to "or the Loan Fund".

83. Items 37 and 38 amend section 16 by:

•

replacing the reference to "borrowing," with "borrowing and";

•

omitting the reference to "and for the purposes of making Payments to the Consolidated Revenue Fund in accordance with section 17".

84. Item 39 repeals section 17; hence the reference being omitted in section 16 is redundant. The amended section 16 is: "Moneys borrowed under sub-section 15(1) shall be issued and applied only for the expenses of borrowing and for the purposes of making payments to the States and the Northern Territory in accordance with this Act."

85. Item 39 repeals section 17. Subsection (1) provides that the Finance Minister may authorise the reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

86. Item 40 amends section 18 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 41 to 45 - States (Works and Housing) Assistance Act 1984

87. Item 41 amends section 14, and the heading of section 14, by omitting the references to "or the Loan Fund".

88. Items 42 and 43 amend section 16 by:

•

replacing the reference to "borrowing," with "borrowing and";

•

omitting the reference to "and for the purposes of making payments to the Consolidated Revenue Fund in accordance with section 17".

89. Item 44 repeals section 17; hence the reference being omitted in section 16 is redundant. The amended section 16 is: "Moneys borrowed under sub-section 15(1) shall be issued and applied only for the expenses of borrowing and for the purposes of making payments to the States and the Northern Territory in accordance with this Act."

90. Item 44 repeals section 17. Subsection (1) provides that the Finance Minister may authorise the reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

91. Item 45 amends section 18 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 46 to 50 - States (Works and Housing) Assistance Act 1985

92. Item 46 amends section 14, and the heading of section 14, by omitting the references to "or the Loan Fund".

93. Items 47 and 48 amend section 16 by:

•

replacing the reference to "borrowing," with "borrowing and";

•

omitting the reference to "and for the purposes of making payments to the Consolidated Revenue Fund in accordance with section 17".

94. Item 49 repeals section 17; hence the reference being omitted in section 16 is redundant. The amended section 16 is: "Moneys borrowed under section 15 shall be issued and applied only for the expenses of borrowing and for the purposes of making payments to the States and the Northern Territory in accordance with this Act."

95. Item 49 repeals section 17. Subsection (1) provides that the Finance Minister may authorise the reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

96. Item 50 amends section 18 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 51 to 55 - States (Works and Housing) Assistance Act 1988

97. Item 51 amends section 12, and the heading of section 12, by omitting the references to "or the Loan Fund".

98. Items 52 and 53 amend section 14 by:

•

replacing the reference to "borrowing," with "borrowing and";

•

omitting the reference to "and for the purposes of making Payments to the Consolidated Revenue Fund in accordance with section 15".

99. Item 54 repeals section 15; hence the reference being omitted in section 14 is redundant. The amended section 14 is: "Money borrowed under section 13 shall be issued and applied only for the expenses of borrowing and for the purposes of making payments to the States in accordance with this Act."

100. Item 54 repeals section 15. Subsection (1) provides that the Finance Minister may authorise the reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

101. Item 55 amends section 16 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".

Items 56 and 57 - Vocational Education and Training Funding Act 1992

102. Item 56 repeals sections 10 and 13.

•

Section 10 provides for payments "to be made out of the Consolidated Revenue Fund or the Loan Fund". With the abolition of the Loan Fund there is no need to specify the Fund from which payments are made. All payments are made from the CRF.

•

Subsection 13 (1) provides for the Finance Minister to authorise reimbursement of the CRF from the Loan Fund. Subsection (2) is dependent on action taken in subsection (1). The Loan Fund has been abolished; hence the section is redundant.

103. Item 57 amends section 14 by deleting the reference to the Loan Fund. The amended section is: "The Consolidated Revenue Fund is appropriated as necessary for the purposes of this Act".