Today we have locked in reforms to modernise the Reserve Bank.
We’re ensuring Australia’s central bank remains world class with a monetary policy framework fit to meet our current and future economic challenges.
These laws will reinforce the Reserve Bank’s independence, clarify its mandate, and modernise its structures.
This is one of the 11 Treasury bills that passed the Senate this week and show we can maintain a primary focus on inflation and the cost of living while we keep the reform wheels turning.
This legislation will deliver the biggest set of reforms undertaken at the Reserve Bank in more than three decades.
The Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 implements the recommendations of the RBA Review that require legislation, including to:
- Mandate that the RBA’s overarching objective is to “promote the economic prosperity and welfare of the people of Australia, both now and into the future”
- Confirm that monetary policy should have dual objectives of price stability and contributing to full employment
- Clarify the RBA’s responsibility to contribute to financial system stability.
This legislation also establishes robust governance arrangements for the RBA.
Despite years of detailed consultation with the Opposition, the Liberals and Nationals refused to support these important reforms, forcing the government to pass this legislation with the support of the crossbench.
These changes are part of the Albanese Government’s broader efforts to reform, renew and refocus the nation’s key economic institutions so that they can help meet current and future challenges.