- SECT 105
Taking over public debts of States
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.