LOANS SECURITIES.

No. 55 of 1959.

An Act to amend the Loans Securities Act 1919–1956.

[Assented to 9th September, 1959.]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the Loans Securities Act 1959.

(2.) The Loans Securities Act 1919–1956, as amended by this Act, may be cited as the Loans Securities Act 1919–1959.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

3. After section six a of the Loans Securities Act 1919–1956 the following section is inserted:—

Exemption of certain securities issued abroad from taxation.

“6b.—(1.) Where, by the terms or conditions upon which any stock or security has been issued by or on behalf of the Commonwealth outside Australia (whether before or after the commencement of this section and whether under this Act or otherwise), the Commonwealth has given an undertaking, howsoever expressed, to the effect that the stock or security, or the principal or interest moneys payable under the stock or security, will be exempt from, free of, or not subject to, taxes imposed in the Commonwealth except where the stock or security is the property

of a person included in a particular class of persons consisting of or including all residents of Australia, then, notwithstanding anything contained in any law of the Commonwealth or of a State or Territory of the Commonwealth, the stock or security, its amount or value, and any principal or interest moneys payable under the stock or security, are not subject to any tax or duty under any such law and shall be disregarded for all purposes in determining the liability of any person to pay tax or duty under any such law or in determining the amount of any such liability, except where the stock or security was, at the time of the act, transaction or event that, according to the provisions of the law imposing the tax or duty, gave rise to liability to the tax or duty, the property of a person included in that particular class of persons.

“(2.) In this section—

(a) a reference to stock or to a security shall be read as including a reference to an interest in stock or in a security; and

(b) a reference to tax or duty shall be read as including a reference to tax or duty in respect of—

(i) the estates of deceased persons;

(ii) property derived from deceased persons; and

(iii) gifts or other dispositions of property.”.