Treasurer Jim Chalmers appears set to seek Greens deal for RBA reform
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The news: Treasurer Jim Chalmers has hit back at the Coalition as the opposition prepares to block his planned and historic reforms of the Reserve Bank.
He has put all options on the table, including a deal with the Greens, accepting more changes from the Coalition or shelving the changes. But his commentary suggested he would seek a deal with the minor parties.
The context: The RBA reforms have been a source of major political discussion since a historic review into the central bank was handed down in 2023. Opposition treasury spokesperson Angus Taylor told the Australian Financial Review that he was questioning the government's commitment to the independence of the RBA following recent comments from Chalmers that high rates are "smashing the economy".
Chalmers said the Coalition’s approach to the reforms was “irresponsible” and “disappointing” but “not especially surprising” and he had demonstrated efforts to deal with issues raised by the opposition.
In August, Chalmers offered a deal on the RBA reforms to the Coalition to progress the stalled plans. Labor is seeking to pass the bill so it kicks in for early-2025. Part of the deal was retaining section 11 — not replacing members of the interest rate board but instead keeping all current members.
He also noted that RBA governor Michele Bullock supports the reforms.
What they said: “The Reserve Bank reforms are all about making the RBA more independent, not less independent,” Chalmers said.
“I dealt with [Angus Taylor] in good faith for the best part of a couple of years. I did genuinely put a premium on bipartisanship, but there's only so much that you can do. I'd even started to consult him on possible appointments to the boards, and so he knows that I have absolutely no intention of making political appointments to these boards,” Chalmers said.
Chalmers noted that he had not, to date, been seriously negotiating with the Greens as he had been seeking bipartisanship between the major parties.
“Unfortunately, the position that the Coalition has taken deals the minor parties into the conversation more than they should be, in my view, and that’s an unfortunate development.”
The sources: Treasurer Jim Chalmers press conference, Australian Financial Review
