Loans (Taxation Exemption) Act 1978

The Loans (Taxation Exemption) Act 1978 is an Act that provides for the exemption from taxation of certain documents and payments relating to overseas borrowings by or on behalf of the Commonwealth. The Act was assented to on November 28, 1978, and it comes into operation on the day it receives the Royal Assent.

The Act defines "law" as a law of the Commonwealth or of a State or Territory, and "prescribed borrowing" as a borrowing of moneys outside Australia by or on behalf of the Commonwealth upon terms and conditions that do not provide for the issue of stock or securities. The Act also provides exemptions from taxation in respect of certain documents and payments relating to prescribed borrowings.

The Act states that where the Commonwealth has given an undertaking to exempt a document or payment from tax, the document is not subject to any tax or duty under any law. However, the exemption only applies if the person beneficially entitled to the amount is not included in a particular class of persons consisting of or including all residents of Australia.

The Act also provides that it has effect notwithstanding anything contained in any law. This means that the exemptions provided by the Act will apply even if they conflict with other laws.