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 Each Act specified in a Schedule to this Act is amended or repealed as is set out in the applicable items in the Schedule.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