Australian Loan Council is an organization that was created to coordinate the amount of borrowing by the federal government and state governments of Australia. The council was set up in 1927 and given legal standing by an amendment to the Constitution in 1928. At that time, the federal government and state governments were competing against one another to raise money in the bond markets. The purpose of the council was to regulate borrowing by the various governments.
In the 1980’s and 1990’s, state governments began using alternative methods of raising money and avoided the authority of the loan council. By 1994, a new agreement was reached that changed the role of the council. After Jan. 1, 1995, it was no longer necessary for the federal or state governments to obtain approval from the council to borrow money. Further, states became able to issue bonds on their own behalf. With this change, the council lost the ability to limit borrowing. It now concerns itself more with making government finances transparent—that is, more easily understood by the public,
See also Bond .
