Commonwealth Consolidated Acts

FINANCIAL AGREEMENT VALIDATION ACT 1929 - NOTES

Act No. 4 of 1929
This Act was prepared on 23 March 2004
Prepared by the Office of Legislative Drafting,
Attorney-General's Department, Canberra

Preamble
WHEREAS an agreement (a copy of which is set forth in the Schedule to this Act) was made on the twelfth day of December One thousand nine hundred and twenty-seven between the Commonwealth of Australia of the first part and the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania of the second, third, fourth, fifth, sixth and seventh parts respectively:
AND WHEREAS the Agreement has been approved by the Parliaments of the Commonwealth and of the States:
AND WHEREAS the Agreement provides among other things that the Commonwealth will take the necessary action to submit to the Parliament of the Commonwealth and to the electors proposals for the alteration of the Constitution of the Commonwealth in the following form:

105A(1) The Commonwealth may make agreements with the States with respect to the public debts of the States, including:

(a) the taking over of such debts by the Commonwealth;
(b) the management of such debts;
(c) the payment of interest and the provision and management of sinking funds in respect of such debts;
(d) the consolidation, renewal, conversion, and redemption of such debts;
(e) the indemnification of the Commonwealth by the States in respect of debts taken over by the Commonwealth; and
(f) the borrowing of money by the States or by the Commonwealth or by the Commonwealth for the States.

(2)

The Parliament may make laws for validating any such agreement made before the commencement of this section.

(3)

The Parliament may make laws for the carrying out by the parties thereto of any such agreement.

(4)

Any such agreement may be varied or rescinded by the parties thereto.

(5)

Every such agreement and any such variation thereof shall be binding upon the Commonwealth and the States parties thereto, notwithstanding anything contained in this Constitution or the Constitution of the several States or in any law of the Parliament of the Commonwealth or of any State.

(6)

The powers conferred by this section shall not be construed as being limited in any way by the provisions of section 105 of this Constitution.

AND WHEREAS a proposed law embodying the said proposals was, on the fourteenth day of September, One thousand nine hundred and twenty-eight, passed by both Houses of the Parliament of the Commonwealth by an absolute majority, and, having been submitted to the electors in accordance with the Constitution, was on the seventeenth day of November, One thousand nine hundred and twenty-eight, approved in a majority of the States by a majority of the electors voting, and approved by a majority of all the electors voting, and was presented to the Governor-General for the King's assent:
AND WHEREAS the law embodying the said proposals was assented to by the Governor-General in the King's name on the thirteenth day of February One thousand nine hundred and twenty-nine:
AND WHEREAS it is desirable to validate the agreement:
BE it therefore enacted by the King's Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows: