Commonwealth of Australia Explanatory Memoranda

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COMMONWEALTH INSCRIBED STOCK AMENDMENT (DEBT CEILING) BILL 2018

                      2016-2017-2018




THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                         SENATE




  COMMONWEALTH INSCRIBED STOCK AMENDMENT
          (DEBT CEILING) BILL 2018




           EXPLANATORY MEMORANDUM




        (Circulated by authority of Senator Bernardi)
COMMONWEALTH INSCRIBED STOCK AMENDMENT
(DEBT CEILING) BILL 2018

OUTLINE

The purpose of the Commonwealth Inscribed Stock Amendment (Debt Ceiling) Bill 2018 is
to reinstate arrangements for fiscal responsibility existent under previous governments. The
bill will establish a debt on Commonwealth inscribed stock in keeping with the present
budget settings, to ensure they are not exceeded without parliamentary approval. The bill is
necessary to ensure that Australia maintains its debt levels within acceptable levels that
enable a return to budgetary surplus and minimise the burden of public debt on future
generations.


NOTES ON CLAUSES

Clause 1: Short Title

1.       Clause 1 is a formal provision specifying the short title of the Bill.

Clause 2: Commencement

2.        This clause provides for the provision of the Bill to commence on the day after this
Bill receives the Royal Assent.

Clause 3: Schedules

3.       Each Act specified in a Schedule to this Act is amended or repealed as is set out in
         the applicable items in the Schedule. Any other item in a Schedule to this Act has
         effect according to its terms.

Schedule 1--Amendments

Commonwealth Inscribed Stock Act 1911

4.     This Schedule sets a debt ceiling at $600 billion.

Item 1 - After section 4

5.       This item restricts the total face value of stock and securities on issue under the Act
         to not exceed at any time $600 billion. Aside from the dollar figure, the operative
         parts of these provisions are identical to those which were previously legislated.

Item 2 - Application provision

6.       This item applies the changes made by item 1 to stock and securities on issue on or
         after the commencement of the item. The debt ceiling will apply to stock and
         securities that were issued before or after the commencement of item 1.




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                 Statement of Compatibility with Human Rights
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011


          Commonwealth Inscribed Stock Amendment (Debt Ceiling) Bill 2018


This Bill is compatible with the human rights and freedoms recognised or declared in the
international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny)
Act 2011.




Overview of the Bill
The purpose of the Commonwealth Inscribed Stock Amendment (Debt Ceiling) Bill 2018 is
to reinstate arrangements for fiscal responsibility existent under previous governments. The
bill will establish a debt on Commonwealth inscribed stock in keeping with the present
budget settings, to ensure they are not exceeded without parliamentary approval.


Human rights implications
This Bill does not engage any of the applicable rights or freedoms.




Conclusion
This Bill is compatible with human rights as it does not raise any human rights issues.


                                      Senator Bernardi




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