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Commonwealth Inscribed Stock Amendment (Debt Ceiling) Bill 2018

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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                        Each Act specified in a Schedule to this Act is amended or repealed as is set out in the applicable items in the Schedule.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.



 

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