Commonwealth Consolidated Acts Commonwealth Consolidated Acts
The Parliament may take over from the States their public debts as existing at
the establishment of the Commonwealth , or a proportion thereof according to
the respective numbers of their people as shown by the latest statistics of
the Commonwealth, and may convert, renew, or consolidate such debts, or any
part thereof; and the States shall indemnify the Commonwealth in respect of
the debts taken over, and thereafter the interest payable in respect of the
debts shall be deducted and retained from the portions of the surplus revenue
of the Commonwealth payable to the several States, or if such surplus is
insufficient, or if there is no surplus, then the deficiency or the whole
amount shall be paid by the several States.