Just prior to the declaration of war in September 1939, an officer with audit experience from the Treasury was appointed as liaison officer between the Treasury and the Defence Departments.Following the entry of Japan into the war, in December 1941, the machinery for the higher direction of the war was re-organised. A Defence Division was formed in the Department of the Treasury and took over from the Department of Defence Co-ordination (CA 37) its function of financial co-ordination and review and the co-ordination of civil defence staffs (other than the Public Service). The Finance Section, Staff Section and the services provided for the Board of Business Administration and the Treasury Finance Committee were transferred from Defence Co-ordination to the Defence Division of Treasury.The Treasury Liaison Officer became the Treasury representative in charge of Defence Division (Assistant Secretary) and Chairman of the Treasury Finance Committee.The functions of the Defence Division of Treasury were to examine and coordinate major financial and accounting proposals affecting the Departments of Navy, Army and Air and to consult with the services and advise them on the financial aspects of matters of joint service interest.It also provided executive assistance and accounting inspection services for the Board of Business Administration and became responsible for most of the executive Treasury work connected with Defence and War Industry, liaison with the War Departments in Melbourne, reciprocal lend-lease finance, disposals, overseas war adjustments and other Treasury aspects of war administration.The end of the war brought with it new financial and Treasury problems, some of which were handled by the Defence Division. These included: . the breakdown of war production and compensation to contractors for cancelled contracts; . disposal of war assets; . liquidation of canteen assets and establishment of the post war Canteens Service; . war gratuity administration; . surveillance of Department of Post-war Reconstruction activities in connection with rehabilitation of ex-service personnel; . review of service demobilisation activities and the pay and service conditions; and . other financial matters in relation to the interim and post-war forces.The Defence Division remained in Melbourne until early 1959 when it was relocated with the Central Office of the Department of Treasury in Canberra. It continued to operate a separate registry system until 1962 when the Division was merged into the Department of the Treasury. It existed as a Division of the Treasury until late 1976/early 1977. Sources1. Paul Hasluck, Government and the People 1939-41, Canberra, 1965 2. Committee of Review of Civil Staffing of Wartime activities, Report on the Department of Treasury, Defence Division, June 19453. Commonwealth Government Directory, 1961 (p.149); 1970 (p.236)
See also:The Australian War Memorial: AWM70, 141 [Official War History, 1939-45 War: Records of Sydney J Butlin:] Departmental History – Treasury, c1948-c1953, folios 101-104. (Note the item is cited in RecordSearch.)
Historical agency address
1941-by1959: Victoria Barracks, Melbourneby1959- 1977: West Block, Canberra