1301.0 - Year Book Australia, 1929  
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1. New South Wales

(i) General. Advances to settlers are effected through the Rural Bank Department of the Government Savings Bank, and may consist of either (a) overdraft repayable on demand; or (b) long-term loan for & period up to 31 years repayable by equal half-yearly instalments, including principal and interest, on freehold lands or any tenure under the Crown Lands Acts; or (c) advances on purchase of farms. Advances for the purchase of wire-netting are made under the provisions of the Pastures Protection Act 1 advances to soldier settlers under the Returned Soldiers Settlement Acts, and advances for the sinking of shallow bores on irrigation areas are made by the Water Conservation and Irrigation Commission.

(ii) (a) Government Savings Bank of New South Wales-Rural Bank Department. Advances are made by the Rural Bank to eligible applicants in the following ways:-

(1) Long-term loans repayable by equal hall-yearly instalments, including interest and part of the principal, spread over terms up to 31 years. (2) Fixed loans for definite terms not exceeding five years, during which interest only is payable, the loan being repayable at the end of the term. (3) Overdrafts on current account, interest being charged on the daily balance. Such accounts will be operative by cheque and may be overdrawn up to the limit fixed in each case. (4) A combination of the above giving the advantages of each.

(b) Long-term Loans and Fixed Loans. The security for loans under this heading must be first mortgage of land, either Freehold (Old System or Torrens Title) or any of the tenures created by the Crown Lands Acts. Stock, plant, machinery, crops, etc., are not acceptable security for these classes of loans.

Advances may be obtained-( 1) To pay off existing encumbrances on, or to purchase the land offered as security. (2) To make improvements on the land, or to improve and develop or utilize the agricultural or pastoral resources of the land, or to enable the applicant to carry on agricultural or pastoral pursuits. (3) To build a home upon the land. (4) To pay off money owing to the Crown in respect of the land.

Advances are limited to a maximum amount of 2,000. Advances on Freeholds or any certificated tenures under the Crown Lands Acts will not exceed two-thirds of the Bank’s valuation of the security, whilst on uncertificated tenures under the Crown Lands Acts advances will not exceed three-fourths of the Bank’s valuation of the improvements thereon, nor two-thirds of the sale value of the security as determined by the Bank's Valuator. Advances on Orchard and/or Poultry Farm securities will be on a more conservative basis. At present the rate of interest for long-term and fixed loans is 6 per cent. per annum.

(c) Overdrafts. Overdrafts on current account must, under the Bank Act, be granted only to agricultural or primary producers, or to persons carrying on industries immediately associated with rural pursuits. As the objects of the Rural Bank are to promote settlement, and assist primary production, the purpose for which overdrafts are required must Come within the scope of those objects.

For overdrafts the Commissioners prefer as the principal security land, either freehold (Old System or Torrens Title) or any of the tenures under the Crown Lands Acts, but any other security may be submitted as collateral. On land the limit of advance will be the same as for long-term loans, but a larger margin will generally be required for other classes of security. Interest at 6 per cent. will be charged on the daily balance.

(d) Advances to facilitate Subdivision of Private Estates under Section 64-Government Savings Bank Act 1906. The Commissioners, through the Rural Bank Department, are prepared to finance to the extent hereinafter set out, the subdivision of private estates suitable for Closer Settlement, the title to which is either Freehold under the Real Property Act or Certificated Conditional Purchase.

lt is essential that estates offered for subdivision should, from the quality of soil, average rainfall and distance from existing railway line or shipping port (not exceeding 15 miles), be suitable for closer settlement and approved as such by the Land Settlement Board.

lf the proposition is satisfactory, the Commissioners will issue certificates under Section 64 of the Bank Act stating the amount they are prepared to advance on each farm, subject to the conditions specified therein. If these certificates are used as the basis of negotiations between buyer and seller, the parties will know before committing themselves to a contract the amount they can expect from the Rural Bank by way of an advance and the conditions attaching thereto.
The maximum advance that may be made on a fully improved farm will not exceed 66 2/3 per cent. of the Bank’s value. If a farm is not fully improved, further improvements will be prescribed-to be effected by the purchaser at his own expense-and in these cases the maximum advance will not exceed 80 per cent, of the present value, or 66 2/3 per cent, of the value when the prescribed improvements are made, whichever is the less.

The maximum sum that may be advanced by the Bank on any farm will be 3,000. Interest will be at the rate of 6 per cent. Loans will be repayable by equal hall-yearly instalments of interest and part principal over a term of 31 years.

(iii) Returned Soldiers’ Settlement Act. Advances up to 625 may be made to returned soldiers for prescribed purposes, principal and interest being repayable on easy terms.

(iv) Amount of Advances. The following table gives particulars respecting advances etc., to 30th June, 1928:-


Advances made
during 1927-28
Total Advances
at 30th June, 1928
Amount outstanding
at 30th June, 1928

Government Savings Bank Advances
Soldier Settlement Advances
Advances for Purchase of Wire Netting
Advances to Necessitous Farmers
Advances to Civilian Settlers on Irrigation Areas
Shallow Boring Advances




2. Victoria

(i) General. The principal institution which advances money to settlers is the State Savings Bank. The Closer Settlement Board is also authorized to make such advances, and the Government may lend money to Cool Stores Trusts, and under special drought circumstances, make advances to settlers for the purchase of seed, cattle, etc., for which purpose separate Acts have been and are passed from time to time as required.

(ii) State Savings Bank Act. The Credit Foncier Department of the State Savings Bank was created for the purpose of making advances to settlers and others, and is authorized to borrow up to 29,000,000 for that object. The Commissioners may lend money to farmers, etc., on the security of any agricultural, horticultural, viticultural, or pastoral land held in fee-simple or on conditional purchase. Such loans are secured by a first mortgage on the property. No advance may be less than 50, or more than 4,000, and each advance is limited to three-fourths of the value of the land. For leasehold land the maximum advance of three-fourths of value will be reduced by the amount of rent which would be payable to the Crown to make it freehold; but if this would prevent any leaseholder from obtaining a loan of 15s. per acre, the Commissioners may advance that sum, provided the valuator certifies that there are improvements on the land to the value of at least 1 per acre, and that the value of the land and improvements exceeds 2 per acre. in the case of land which has acquired a special increase of value by reason of being cultivated as vineyards, hop-grounds, orchards, etc., advances may be made on the following terms :-(a) the amount of allowable advance may be increased by one-hall of such special increase of value, but not to a greater amount than 50 per acre; and (b) no advance may be made for a longer period than 20 years. Repayment of advances must be made in 63 half-yearly instalments of principal and interest, a slight reduction in the amount being made in the case of returned soldiers. The Commissioners may also advance money to companies in country districts for the erection of works for freezing, packing, or storing any commodities which are included in the Primary Products Act or in the Fruit Act, provided that shares equal in value to not less than two-thirds of the proposed expenditure have been taken up, and one-third thereof paid for in cash. The loan is granted upon such terms and conditions as the Commissioners may think fit.

(iii) Closer Settlement Act. The Closer Settlement Board may advance money to (a) lessees of workmen’s homes and agricultural labourers’ allotments in aid of the cost of fencing and erecting dwelling-houses; (b) lessees of Crown land for carrying on farming or grazing pursuits, or for adding to improvements; (c) municipalities, for making roads to any land acquired by the Board; and (d) owners of land for the purchase of wire-netting. An advance may not exceed 625, or, in the case of land which is suitable mainly for grazing, 1,000, and is repayable in 40 half-yearly instalments, with 5 per cent. interest. Where a lessee has, after not less than 6 years, obtained his compliance certificate or Crown grant, the amount of loan may be increased to 1,000. but must not exceed 60 per cent. of the value of the improvements and amount of purchase-money paid.

(iv) Discharged Soldiers’ Settlement Act. The Closer Settlement Board may advance to a discharged soldier up to 625, or, if he is the owner or lessee of land in the mallee country or of grazing land only, up to 1,000. The rate of interest is fixed by the Minister, and is 3 per cent. for the first year, increasing by per cent. annually until the rate determined is reached. Repayment is as prescribed.

(v) Primary Products Advances Act. A company registered under the Companies Act, or a society registered under the Provident Societies Act, which is undertaking the establishment of abattoirs and freezing works, or cool storage for fish, or dried or canned fruit, or jam factories, tobacco-curing, or fruit-works, may be granted by the State Savings Bank a loan for the purpose of constructing such works. No loan may be granted unless at least one-third in number and value of the shareholders are persons engaged in the production of the primary products supplied to the company and full particulars of the proposed undertaking are furnished. The loan is repayable at such times and with such interest as the Commissioners may determine, the property must be mortgaged to the Bank, and a sum, not exceeding 5 per cent. of the value of the buildings, etc., paid annually into a depreciation fund.

(vi) Fruit Act. A Cool Stores Trust may be granted a loan by the Treasurer for the purchase of land and for the erection of a cool store thereon. Such loan must be a first charge on the property and revenue of the Trust, be for an agreed term of years, and provide for repayment with interest at 4 per cent. in 40 half-yearly instalments. The State Savings Bank Commissioners may also advance money to a company for the purpose of constructing fruit.works, provided that at least one-third in number and value of the shares are held bona fide by shareholders being owners or occupiers of orchards within the locality. The terms of the loan are the same as those under the Primary Products Advances Act.

(vii) Amount of Advances. The following table gives particulars respecting advances etc., to 30th June, 1928:-


Authority Making Advances.Advances made to-
Advances made
during 1927-28.
Total Advances
at 30th June, 1928.
Amount Outstanding
at 30th June, 1928.

State Savings Bank -Civilians
Discharged soldiers
Closer Settlement Board -Closer Settlement settlers
Soldier settlers
TreasurerCool stores, canneries, etc.

3. Queensland

(i) General. The principal institution which makes advances to settlers is the Agricultural Bank, established by the Agricultural Bank Act of 1923. Advances are also made by the Bank on behalf of the Minister for Lands under the Discharged Soldiers’ Settlement Acts. In addition, assistance is granted by the following authorities :-Irrigation Commissioner; Department of Public Lands, in respect to water facilities and wire-netting; Department of Agriculture and Stock, in respect to seed wheat and drought relief.

(ii) Agricultural Bank Act. The Agricultural Bank makes advances on the security of a first mortgage over property which is used for agricultural, dairying, grazing, horticultural or viticultural pursuits, poultry or pig raising. or other approved rural pursuits. Further security may be required by way of stock mortgage, bill of sale, lien on crops, etc. The limit of advance to one person is 1,700, and, subject to the succeeding paragraphs, no advance may exceed 16s. in the 1 of the fair estimated security value of the land with its permanent improvements, together with those, if any, to be made by means of the advance applied for.

The purposes for which advances are granted are as follow :-(a) Payment of liabilities already existing with respect to the land or payment of the balance of any purchase money in respect of the purchase of the land or any stock, machinery, or implements therefor; (b) effecting improvements on the land; (c) purchase of stock, machinery, or implements; (d) generally in respect of agricultural, dairying, grazing, horticultural, or viticultural pursuits, poultry or pig raising, or other rural pursuits on the land; (e) relief in case of drought, flood, tempest, fire, or other adverse conditions or happenings beyond the control of the borrower; (f) not exceeding 400 for unspecified purposes in connexion with the land, provided that the applicant is a bonafide settler residing on and working the land as farm land.

Advances to beginners on the land may be granted within the before-mentioned limit of 1,700 to the full value of the improvements proposed to be made for any one or more of the following objects, but not exceeding in the aggregate 500 at that special rate Buildings, ringbarking, clearing, fencing, draining, water conservation (including a well or bore together with lifting power), dairy house and yards, accommodation for pigs, silos, haysheds.

The term for repayment of any advance shall be the term fixed by the Bank, not exceeding 20 years, exclusive of any initial period allowed by the Bank (not exceeding 5 years) during which interest only is payable.

After the expiration of the initial interest-only period, the loan is repayable by equal half-yearly instalments of an amount sufficient to redeem the loan including interest within the term of years fixed. Advances made on the security of terminating Crown leaseholds must be repaid within a term not later than the date upon which the Iease will expire. Special advances for the purchase of dairy stock, sheep, pigs, dairying plant, etc., may be made to settlers on the security of a chattel mortgage over such purchases.

Provision is made for advances under easy terms to groups of settlers for the co-operative purchase of necessary machinery ; such groups must be registered as co-operative companies or associations. The limit of advance in these cases is 1,700 to any one company or association, and must not exceed two-thirds of the cost of the machinery.

Mortgage advances are made under prescribed conditions to co-operative companies and associations for factories and other works for the manufacture, storage, or treatment of primary produce and resultant products.

The rate of interest on any loan under the Agricultural Bank Act is fixed by the Bank when the application for the advance is approved; the present rate is 5 per cent per annum, except in cases where the loan is discharging liabilities on the land offered as security .when the rate is 6 percent.

The advances outstanding under the Agricultural Bank Act, as set out in the table below, include advances originally made by the Bank’s predecessors under the following legislation and taken over under The Agricultural Bank Act of 1923 :-The Agricultural Bank Act of 1901 ; The Queensland Government Savings Bank Act of 1916 ; The State Advances Act of 1916; The Co-operative Agricultural Production and Advances to Farmers Acts 1914 to 1919.

(iii) Discharged Soldiers’ Settlement Act. Advances may be made by the Minister to discharged soldiers who are owners of land in fee-simple or holders of land under tenure from the Crown. The provisions of this Act are similar in most respects to those of the Agricultural Bank Act. As the settlement of soldiers in this State has been practically completed only a limited number of applications are now being received arid these mostly from existing borrowers, while the advances approved are generally limited to purposes connected with further improvements, the purchase of stock, etc. The maximum term of advance is 33 years exclusive of an initial period of 7 years during which interest only is payable. The rate of interest for the first year is 3 per cent., and it increases annually by per cent up to a maximum of 5 per cent.

(iv) Amount of Advances. The following table gives particulars of advances, etc., to 30th June, 1928:-


Act under which Advances were made
Advances made
during Year 1927-28.
Total Advances
made to 30th June, 1928.
Amount oustanding
at 30th June, 1928.

Agricultural Bank Act
Discharge Soldiers' Settlement Act (a)
Water Facilities
Wire Netting
Seed Wheat
Drought Relief
. .
(b) 51,122

(a) Includes advances to group settlements through the Land Department as well as advances through the Agricultural Bank. (b) Includes accrued interest to 30th June, 1928.

4. South Australia

(i) General. Advances may be made to settlers and others for the purchase of discharging of mortgages. making improvements,etc., under the provisions of the State Bank Act 1925-1928, which are briefly summarized hereunder. Loans may be made under the Loans for Fencing Act and the Vermin Act for the purchase of fencing materials in vermin-infested districts. Advances may be made to homestead block-holders (a) for erecting buildings; or (b) for making improvements on their land. A loan must not exceed in the case of (a) the cost of existing improvements, and in the case of (b) one-half the value of the improvements to be effected; and in no case may a loan exceed 50. Repayment is to be made in 20 equal annual instalments at the rate of 7 7s. 2d. per cent. of the amount advanced. The State Bank may make advances to any settler on the security of his land and improvements (a) for making improvements to a value of 1,000; or (b) for stocking his holding, up to 200; or (c) for discharging an existing mortgage, up to three-fourths of the value of his lease or agreement and improvements ; or (d) for any other purpose, up to the same amount. Repayment of a loan extends over a period of years as is fixed by the Bank at the time of making the advance. Interest only is payable during a period-in no case exceeding five years-as fixed by the Bank, and the advance is repaid by equal half-yearly instalments, not exceeding 70, together with simple interest on the balance outstanding.

(ii) State Bank Act 1926. Under this Act the State Bank of South Australia makes advances under prescribed conditions to farmers and other producers, to local authorities, to persons possessed of the necessary securities, and in aid of industries. The Bank and the borrower may agree upon the term of years, not exceeding 30, over which repayment may be spread, as well as the interest to be paid. The bank may, on the security of a mortgage on the property, make loans to any registered co-operative society three-fourths of the members of which are engaged in or are about to be engaged in rural production, for purposes prescribed.

(iii) Irrigation Act. Settlers under this Act are entitled, under prescribed condition, to loans under the Irrigation Act not exceeding 30 per irrigable acre. Advances may be made only on the security of a first mortgage. During the first 5 years interest only is payable, but thereafter the advance must be repaid in 70 equal half-yearly instalments, with interest.

(iv) Discharged Soldiers’ Settlement Act. Advances are made to soldiers settlers for prescribed purposes on liberal terms in regard to payment of principal and interest.

(v) Agricultural Graduates Land Settlement Act. Under the provisions of this Act, the Minister may (a) purchase land with a view to the settlement thereon of agricultural graduates, the value of which land, with improvements, must not exceed 3,000 for each graduate, and is repayable with interest; (b) the State Bank may advance to any agricultural graduate settler up to 500 for the purpose of purchasing seeds implements, stock, etc., such advance being repayable on easy terms.

(vi) Amount of Advances. The following table gives particulars of advances, etc.. to 30th June, 1928:-


Advances made
during 1927-28.
Total Advances
at 30th June, 1928.
Amount outstanding
at 30th June, 1928.

Department of Lands and Survey
Advances to soldier settlers
Adcances to blockholders
Advances for sheds and tanks
Advances in drought-affected areas
Advances under Closer Settlement Acts
Advances under Agricultural Graduates Settlement Act
State Bank of South Australia
Advances to Settlers for improvements
Advances under Vermin and Fencing Act
Advances under Loans to Producers Act
Irrigation Commission
Soldier settlers
. .
. .




(a) since June,1927, a considerable sum has been written off advances to soldier settlers under Section 8 of the Discharge Soldiers Settlement Relief Act 1925.

5. Western Australia

(i) General. Advances to settlers are made by the Agricultural Bank, which was established in 1895. Special advances are also made to returned soldiers.

(ii) Agricultural Bank. This Bank makes advances to a limit of 2,500 on the security of a first mortgage to persons engaged in agricultural pursuits. The borrower must pay the interest on the amount advanced for the first 10 years, and after the expiration of that term the advance with interest must be repaid within 20 years in half-yearly progressive instalments. The interest is at such rates as may be prescribed, the present figure being 7 per cent. per annum.

(iii) Amount of Advance. The following table gives particulars of advances, etc.. to 30th June, 1928:-


Year ended
Advances made
during Year 1927-28
Total Advances
at 30th June 1928
Amount outstanding
at 30th June, 1928
(inclusive of interest)

Development loans
Soldier settlement loans
Advances to rural industries
Cropping advances
. .

6. Tasmania

(i) General. Advances to farmers and producers may be made under the State Advances Act, to closer settlement settlers under the Closer Settlement Act, to fruit-growers formed into a registered company under the Advances to Fruit-growers Act, and to returned soldiers under the Returned Soldiers’ Settlement Act.

(ii) State Advances Act. The Agricultural Bank of Tasmania, constituted under this Act, is authorized to borrow up to 370,000 on debentures or stock for the purpose of advancing money to farmers and other primary producers who own land in fee-simple or under purchase from the Crown on credit. Advances are secured on first mortgages, and may be made for any of the purposes prescribed. The trustees reserve the right to fix the period for repayment of any loan with a maximum term of 30 years. Interest at 6 per cent. and instalment of principal are payable half-yearly.

(iii) Closer Settlement Act. Under this Act the Minister may make advances to lessees in aid of the cost of improvements. The total amount advanced may not exceed for of the sum expended by the lessee in such improvements. Loans are repayable by equal half-yearly instalments with interest, not exceeding 7 per cent., extending over a period not exceeding 21 years.

(iv) Advances to Fruit-growers Act. The Minister may make advances for prescribed purposes to registered companies on a first mortgage on freehold land or on a lien on other property. Generally, the amount of advance must not exceed 75 per cent. of the value of the land or plant, but, in. the case of a company desiring to purchase grading machinery, it must not exceed 50 per cent. of the value thereof. Liberal terms have been arranged for repayment of principal and interest.

(v) Returned Soldiers’ Settlement Act. Advances up to 625, on easy terms as regards repayment, may be made to discharged soldiers to assist in making improvements and purchasing requisites. The Minister may in certain cases remit wholly or in part the payment of rent or instalments on the purchase-money.

A returned soldier, who has not exercised his option of acquiring a free selection, and who is already a selector of land on credit purchase, is entitled to a remission of his instalments up to 100 if he made application for same before 31st March, 1922.

(vi) Amount of Advances -The following table gives particulars respecting advances etc., to 30th June, 1928:-


ParticularsAdvances made to-
Advances made
during Year 1927-28
Total Advances
at 30th June 1928
Amount outstanding
at 30th June, 1928

Agricultural Bank
Agricultural Bank
Minister for Lands
Minister for Lands
Minister for Lands
Soldier Settlers
Closer Settlers
Fruit Growers
. .

7. North Australia and Central Australia

(i) Wire and Wire Netting Act 1927 The Advances to Settlers Act 1923 has been superseded by the Wire and Wire Netting Act 1927, which, subject to the regulations, provides that the Minister for Markets may out of moneys paid into a “ Wire and Wire Netting ” Trust Account, make advances, to settlers in North Australia and Central Australia for the purchase of wire and/or wire netting.

Applicants must offer security for the repayment of advances and fulfil the prescribed conditions.

An advance cannot be made on unimproved land or on land on which the rent is overdue.

(ii) Encouragement of Primary Production Ordinance 1927. Under this Ordinance Primary Producers Board may, out of moneys voted by Parliament, expend such sums as it deems necessary for the carrying out of its powers under this Ordinance, particularly as regards the granting of assistance to producers for the purposes prescribed. Principal and interest are repayable under easy terms.

(iii) Amount of Advances. During the financial year 1927-28 the sum of 632 was advanced, making the total amount advanced to the 30th June, 1928, 9,863 (approximately). The balance outstanding at 30th June, 1928, including interest, was 9,436.

8. Summary of Advances
The following table gives a summary for each State to the 30th June, 1928:-


Advances made
during 1927-28.
Total Advances
at 30th June, 1928.
Amount outstanding
at 30th June, 1928.

New South Wales
South Australia
Western Australia
North and Central Australia