Risk of political stacking
Coalition speakers argued the reforms could let the government remake the Reserve Bank's new boards in its own interests, undermining confidence in an institution that is supposed to be independent of day-to-day politics.
Treasury Laws Amendment (Reserve Bank Reforms)
Current status
This bill became law on Nov 29th, 2024.
Policy area
Budget, tax & economy
What does this bill do?
The bill replaced the old Reserve Bank Board with a new Monetary Policy BoardThe new board that decides interest-rate policy and the Reserve Bank's monetary settings after this reform. and Governance BoardThe new board that handles the Reserve Bank's corporate governance, accountability and internal management matters., while the existing Payments System BoardThe board that continues to set policy for how Australia's payment systems operate. continues to handle payments system policy.
Why was it introduced?
An independent review found the Reserve Bank’s governance, monetary policy framework, structures and systems needed strengthening. This bill responds by splitting the old board into specialist boards, tightening the Bank’s objectives and governance, and removing its power to direct private bank lending.
Broader context
Australia’s central bank had long operated with one main Reserve Bank Board, while the Payments System BoardThe board that continues to set policy for how Australia's payment systems operate. separately handled payments system policy. Labor first promised an independent review before the 2022 election, and that review later found the Reserve Bank’s governance, monetary policy framework, structures and systems needed strengthening. The government responded by introducing legislation in November 2023 to replace the old Reserve Bank Board with specialist Monetary Policy and Governance Boards, tighten the Bank’s objectives and remove its power to direct private bank lending. Parliament completed passage on 28 November 2024, and Royal AssentThe final approval a bill receives from the Governor-General before it becomes law. followed on 29 November 2024.
Key criticism
The main criticism was that the bill could weaken the Reserve Bank's independence by letting the government reshape the new boards for political reasons, while also removing elected ministers' ability to step in on interest-rate decisions. These objections came from Coalition speakers and some crossbench critics, but they were not a single shared case because others mainly attacked politicised appointments while the Greens focused on lost democratic control.
Who supported it?
Hon Dr Jim Chalmers MP introduced this bill. In the House final vote, support came from Labor, some crossbench members; opposition came from Liberal Party, Nationals, Greens, Centre Alliance, some crossbench members.
Introduced in House 29 Nov 2023
Passed House 12 Sept 2024 Aye 82 No 59
Passed Senate 28 Nov 2024 Aye 31 No 26
Became law 29 Nov 2024
Did it become law?
Yes
Became law 29 Nov 2024
Final passage
Recorded final vote
2 counted final-passage votes were recorded.
Passage speed
366 days
From introduction to the latest recorded parliamentary step
Meaning
What does this bill do?
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The bill replaced the old Reserve Bank Board with a new Monetary Policy BoardThe new board that decides interest-rate policy and the Reserve Bank's monetary settings after this reform. and Governance BoardThe new board that handles the Reserve Bank's corporate governance, accountability and internal management matters., while the existing Payments System BoardThe board that continues to set policy for how Australia's payment systems operate. continues to handle payments system policy.
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The Reserve Bank must use all of its powers with the goal of promoting Australians' economic prosperity and welfare now and into the future.
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The Monetary Policy BoardThe new board that decides interest-rate policy and the Reserve Bank's monetary settings after this reform. now sets monetary policy around stable prices and full employmentOne of the Reserve Bank's policy goals on this page, meaning as many people as possible who want work can find it., and it also sets Reserve Bank policy for supporting financial system stability outside payments.
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The Governance BoardThe new board that handles the Reserve Bank's corporate governance, accountability and internal management matters. now runs the Reserve Bank's governance and accountability, while monetary policy and payments policy stay with the specialist policy boards.
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The Reserve Bank can no longer direct private banks on how they lend money.
Show source excerpts
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The amendments replace the existing Reserve Bank Board with a new Monetary Policy Board and Governance Board.
Treasury Laws Amendment (Reserve Bank Reforms) explanatory memorandum -
(1) The overarching objective of the Bank is to promote the economic prosperity and welfare of the people of Australia both now and into the future.
Treasury Laws Amendment (Reserve Bank Reforms) Act 2024 final Act text -
The amendments clarify that the RBA’s objectives for monetary policy are a dual mandate to contribute to price stability and full employment. The Monetary Policy Board must exercise its function to determine the monetary policy of the RBA in a way that best contributes to price stability and full employment in Australia. [Schedule 1, item 17, paragraph 9B(1)(a)]
Treasury Laws Amendment (Reserve Bank Reforms) explanatory memorandum -
The Governance Board is the accountable authority of the RBA for the purposes of the PGPA Act. It determines the policy of the RBA with respect to matters relevant to the functions of the RBA but not within the remit of the Monetary Policy Board or the Payments System Board.
Treasury Laws Amendment (Reserve Bank Reforms) explanatory memorandum -
The amendments repeal the RBA’s power to direct the lending activity of private banks under section 36 of the Banking Act, so that the RBA can no longer determine lending policies for private banks.
Treasury Laws Amendment (Reserve Bank Reforms) explanatory memorandum
Context
Broader context for this bill
Australia’s central bank had long operated with one main Reserve Bank Board, while the Payments System BoardThe board that continues to set policy for how Australia's payment systems operate. separately handled payments system policy. Labor first promised an independent review before the 2022 election, and that review later found the Reserve Bank’s governance, monetary policy framework, structures and systems needed strengthening. The government responded by introducing legislation in November 2023 to replace the old Reserve Bank Board with specialist Monetary Policy and Governance Boards, tighten the Bank’s objectives and remove its power to direct private bank lending. Parliament completed passage on 28 November 2024, and Royal AssentThe final approval a bill receives from the Governor-General before it becomes law. followed on 29 November 2024.
- 2022
Labor commits to an independent review of the Reserve Bank
Government speakers later said this bill followed a pre-election commitment to examine how the Reserve Bank was governed and how it made monetary policy decisions.
Hansard ↗ - 29 Nov 2023
Government introduces Reserve Bank reform bill
The TreasurerThe federal minister responsible for economic policy, who introduced and defended the bill and is mentioned as having some oversight powers. said the bill would strengthen the Reserve Bank’s independence, clarify its mandate and modernise its structures by putting key review recommendations into law.
Hansard ↗ - 12 Sept 2024
House passes the bill
After debate resumed in September 2024, the House agreed to the bill in principle, considered it in detail and completed its passage through the chamber.
Parliamentary timeline ↗ - 28 Nov 2024
Senate passes the bill with amendments
The Senate agreed to the bill at second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. and then approved amendment packages, sending it back to the House in an amended form.
Parliamentary timeline ↗ - 28 Nov 2024
Parliament passes Reserve Bank reforms
The House agreed to the Senate amendments on 28 November 2024, settling the bill in the same form in both chambers. Royal AssentThe final approval a bill receives from the Governor-General before it becomes law. followed on 29 November 2024.
Parliamentary timeline ↗
Legislative route
How did it move through Parliament?
House Senate
Introduced 29 Nov 2023
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. opened 29 Nov 2023
A minister or sponsoring member moved the second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., opening the main debate on the bill's purpose and principles.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. moved
Economics Legislation Committee; Committee report (22/03/2024) review 07 Dec 2023
Referred to Committee (07/12/2023): Senate Economics Legislation Committee; Committee report (22/03/2024)
Referred to committee
APH bill page notesSecond readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. debate 10 Sept 2024
The bill reached this recorded parliamentary step.
Sent to Federation Chamber for debate 10 Sept 2024
The bill reached this recorded parliamentary step.
Referred to Federation Chamber
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. debate 11 Sept 2024
The bill reached this recorded parliamentary step.
Returned from Federation Chamber 12 Sept 2024
The bill reached this recorded parliamentary step.
Reported from Federation Chamber
House second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed Aye 83 No 60 12 Sept 2024
Recorded vote: 83 to 60.
The chamber agreed to the bill at second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., meaning it accepted the bill in principle and allowed it to continue.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed to
Consideration in detail 12 Sept 2024
The chamber considered the bill in detail and dealt with amendments before the next stage.
Consideration in detail debate
House third reading agreed Aye 82 No 59 12 Sept 2024
Recorded vote: 82 to 59.
The chamber agreed to the bill at third reading, which completed passage through that chamber. Later message exchanges with the other chamber were still recorded afterwards.
Third reading agreed to
Introduced 16 Sept 2024
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
Introduced and read a first time
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. opened 16 Sept 2024
A minister or sponsoring member moved the second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., opening the main debate on the bill's purpose and principles.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. moved
Senate second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed Aye 31 No 26 28 Nov 2024
Recorded vote: 31 to 26.
The chamber agreed to the bill at second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., meaning it accepted the bill in principle and allowed it to continue.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed to
Senate agreed to amendment packages Aye 31 No 26 28 Nov 2024
Recorded vote: 31 to 26.
The chamber considered amendments before the bill moved to the next stage.
Third reading agreed to :
House agreed to Senate amendments on rule-making limits 28 Nov 2024
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form. The main amendments were: Observed text changed from "Part 2—RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page.’s power to determine the lending policy of banks 5 Banking Act 1959 5 Part 3—RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page.’s overarching objective and…" to "Part 3—RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page.’s overarching objective and functions 4 Reserve Bank Act 1959 4 Part 4—RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page.’s Boards and governance 5 Reserve…".
Consideration of Senate message
Passed both houses 28 Nov 2024
Both houses passed the bill in the same form, completing parliamentary passage.
Finally passed both Houses
Assent 29 Nov 2024
The Governor-General gave Royal AssentThe final approval a bill receives from the Governor-General before it becomes law., turning the bill into an Act.
Key criticism
The main case against this bill
The main criticism was that the bill could weaken the Reserve Bank's independence by letting the government reshape the new boards for political reasons, while also removing elected ministers' ability to step in on interest-rate decisions. These objections came from Coalition speakers and some crossbench critics, but they were not a single shared case because others mainly attacked politicised appointments while the Greens focused on lost democratic control.
Criticism was real but divided, with different opponents worried about opposite kinds of political control.
Less democratic oversight of interest rates
Some opponents said the bill went too far in removing the TreasurerThe federal minister responsible for economic policy, who introduced and defended the bill and is mentioned as having some oversight powers.'s power to override the Reserve Bank, arguing this would leave major interest-rate decisions further from democratic accountability even when households are under severe cost-of-living pressure.
Trust and process concerns
Several Coalition MPs said the government's handling of the reform process had broken bipartisanUsed here to mean both major parties working together, especially on how the Reserve Bank reforms were negotiated. trust and politicised central-bank reform, making it harder to support parts of the package they might otherwise have accepted.
Further sources
Votes
Recorded votes
How the bill itself passed
The chamber-passage votes come first. Expand a vote to see the party breakdown.
Carried House passed the bill
Passed 82 to 59. Support came from Labor. Opposition came from Liberal Party, Nationals, Greens, and Centre Alliance. Minor-party and independent votes were split.
Carried
House passed the bill
Party Aye / No
Labor 66 / 0
Unknown 10 / 25
Liberal Party 0 / 19
Nationals 0 / 12
Independent 6 / 1
Greens 0 / 1
Centre Alliance 0 / 1
Carried Senate passed the bill
Passed 31 to 26. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal Party, Nationals, Australia's Voice, and One Nation. Minor-party and independent votes were split.
Carried
Senate passed the bill
Party Aye / No
Liberal Party 0 / 16
Labor 14 / 0
Greens 11 / 0
Unknown 4 / 3
Nationals 0 / 4
Independent 2 / 0
Australia's Voice 0 / 1
One Nation 0 / 1
UAP 0 / 1
Earlier bill-stage votes
Carried House cleared second reading
Passed 83 to 60. Support came from Labor. Opposition came from Liberal Party, Nationals, Greens, and Centre Alliance. Minor-party and independent votes were split.
Carried
House cleared second reading
Party Aye / No
Labor 66 / 0
Unknown 10 / 25
Liberal Party 0 / 20
Nationals 0 / 12
Independent 7 / 1
Greens 0 / 1
Centre Alliance 0 / 1
Carried Senate cleared second reading
Passed 31 to 26. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal Party, Nationals, Australia's Voice, and One Nation. Minor-party and independent votes were split.
Carried
Senate cleared second reading
Party Aye / No
Liberal Party 0 / 16
Labor 15 / 0
Greens 11 / 0
Unknown 3 / 3
Nationals 0 / 4
Independent 2 / 0
Australia's Voice 0 / 1
One Nation 0 / 1
UAP 0 / 1
Amendments at a glance
Amendments grouped by chamber. These cards include amendment outcomes recorded without a counted division.
House
Defeated Remove bank lending policy powers
Defeated 6 to 69. Support came from Greens and Centre Alliance. Opposition came from Labor, Liberal Party, and Nationals. Minor-party and independent votes were split.
Defeated
Remove bank lending policy powers
The House rejected an attempt to remove a central part of the Reserve Bank reform package, so the bill kept those provisions.
Party Aye / No
Labor 0 / 49
Unknown 3 / 14
Independent 1 / 4
Greens 1 / 0
Centre Alliance 1 / 0
Liberal Party 0 / 1
Nationals 0 / 1
Carried House accepted Senate RBA amendments
Passed 79 to 35. Support came from Labor, Greens, and minor parties and independents. Opposition came from Liberal Party, Nationals, and Centre Alliance. Minor-party and independent votes were split.
Carried
House accepted Senate RBA amendments
The House agreed to the Senate amendments, completing parliamentary passage in the same form.
Party Aye / No
Labor 62 / 0
Unknown 12 / 15
Liberal Party 0 / 12
Nationals 0 / 7
Independent 4 / 0
Greens 1 / 0
Centre Alliance 0 / 1
Carried House accepted all Senate amendments
The House agreed to the amendments made by the Senate, so the bill could pass both chambers in the same form.
Carried
House accepted all Senate amendments
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
Senate
Defeated Oppose bank lending policy powers
Defeated 23 to 30. Support came from Liberal Party, Nationals, and UAP. Opposition came from Labor, Greens, Australia's Voice, and One Nation. Minor-party and independent votes were split.
Defeated
Oppose bank lending policy powers
The Senate rejected the attempt to delete those reform provisions from the bill.
Party Aye / No
Liberal Party 15 / 0
Labor 0 / 13
Greens 0 / 11
Unknown 3 / 3
Nationals 3 / 0
Independent 1 / 1
Australia's Voice 0 / 1
One Nation 0 / 1
UAP 1 / 0
Carried Carry three Greens RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page. amendments
The Senate agreed on voices to three Australian Greens amendments to the Reserve Bank reform bill.
Carried
Carry three Greens RBAAustralia's central bank, which sets interest-rate policy and oversees parts of the financial system on this page. amendments
Carried on voices
The chamber decided this amendment without a counted division, so there is no list of individual Aye and No votes.
This list includes amendment votes, procedural votes and votes on the bill itself.
The parliamentary record also shows 3 Australian Greens amendments agreed without a counted division.
Parliamentary debate
Who spoke, and what they said
Start here — lead voices
Sponsor speech Supports
Jim Chalmers
Chalmers supports the bill and presents it as a major reform that will strengthen Reserve Bank independence, clarify its dual mandate, and modernise its governance.
Read in Hansard ↗ Lead opposing voice Opposes
Angus Taylor
Taylor says the opposition will not back the bill because Labor is using it to sack and stack the Reserve Bank board, which he says undermines the bank's independence and credibility.
Read in Hansard ↗ Lead voice Supports
Graham Perrett
Graham Perrett supports the bill and says it will strengthen the Reserve Bank by making it more independent, efficient and modern.
Read in Hansard ↗ Lead voice Opposes
Simon Kennedy
Simon Kennedy opposes the bill because he says it weakens the Reserve Bank’s independence and creates scope for political interference in interest rates.
Read in Hansard ↗All speeches by bloc
Labor
3 speakers · 4 contributions · 3 support
Labor
3 speakers · 4 contributions · 3 support
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Graham Perrett ★ Graham Perrett supports the bill and says it will strengthen the Reserve Bank by making it more independent, efficient and modern.
“I rise to support the Treasury Laws Amendment (Reserve Bank Reforms) Bill as brought to the House by the Treasurer, my good friend, my neighbour, the honourable member for Rankin. The bill seeks to implement reforms to strengthen the Reserve Bank of Australia and make it more independent, efficient and ready for the rest of the 21st century.”
Read the full speech in Hansard ↗ -
Jim Chalmers ★ 2 contributions Chalmers supports the bill and says it will strengthen the Reserve Bank's independence, clarify its mandate, and modernise its governance.
Hansard records 2 separate contributions by Jim Chalmers on this bill. They are grouped here so the speaker is listed once.
Minister's second reading speech
Chalmers supports the bill and presents it as a major reform that will strengthen Reserve Bank independence, clarify its dual mandate, and modernise its governance. He says the changes are intended to make monetary policy work better for the Australian economy now and into the future.
“This bill is our opportunity to reform and renew the monetary policy and governance framework of the RBA to ensure it works in the interests of the Australian people and in the interests of their economy.”
Read this contribution in Hansard ↗Second reading speech
Chalmers supports the bill and says it will strengthen the Reserve Bank's independence, clarify its mandate, and modernise its governance. He presents it as an overdue reform based on the independent review and says the government remains committed to getting the changes passed.
“The government is committed to strengthening the independent Reserve Bank in an increasingly complex and changing world. Our reforms are timely and measured, and they should be enduring. To support sustainable growth in our economy and to support a better future, we need an RBA that is transparent, strong and independent, an RBA that draws on more expertise to make its important decisions, an RBA that is at the forefront of international best practice and an RBA that remains world class, and that's what these reforms are all about. That's why I commend the bill to the House.”
Read this contribution in Hansard ↗ -
Anne Stanley Stanley says Labor supports the bill because it implements the Reserve Bank reviewThe independent review that examined the Reserve Bank's structure, decision-making and governance and led to these reforms. and strengthens the central bank’s independence, mandate and governance so it is fit for current and future economic challenges.
“The task for this parliament is to ensure that our institutions, not least our central bank, are up to speed and fit for purpose to meet these challenges. This bill does that. I commend the bill to the House.”
Read the full speech in Hansard ↗
Coalition
8 speakers · 9 contributions · 8 oppose
Coalition
8 speakers · 9 contributions · 8 oppose
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Angus Taylor ★ 2 contributions Taylor says the opposition will not back the bill because Labor is using it to sack and stack the Reserve Bank board, which he says undermines the bank's independence and credibility.
Hansard records 2 separate contributions by Angus Taylor on this bill. They are grouped here so the speaker is listed once.
Second reading speech
Taylor says the coalition will not support the bill because Labor's approach has undermined confidence in the Reserve Bank and risks a political stitch-up of appointments. He argues the government has mishandled the reforms and attacked the bank instead of protecting its independence.
“The coalition will not be supporting this Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023. The coalition engaged in this process seeking to reach a bipartisanship position for over 18 months. However, unfortunately, after the Treasurer and Labor surrogates used the past week to wage war on the Reserve Bank, we cannot support these changes. We believe in a stable, credible, capable, independent Reserve Bank of Australia. I consistently and clearly raised the issue of the transition of the existing board members to the new interest-rate-setting board.”
Read this contribution in Hansard ↗Second reading speech
Taylor says the opposition will not back the bill because Labor is using it to sack and stack the Reserve Bank board, which he says undermines the bank's independence and credibility.
“No. I'll take the interjection. Those opposite are bringing in a new piece of legislation to reform the Reserve Bank that allows them to sack and stack the board. In the week leading up to that, you sent the dogs out. You sent the surrogates out to say that the Reserve Bank is filled with barbarians, weirdos and bizarre groupthink and that the governor is a nutter. What sort of an outfit is this? It's an economic joke! What sort of a treasurer is this? He is helpless and hapless.”
Read this contribution in Hansard ↗ -
Simon Kennedy ★ Simon Kennedy opposes the bill because he says it weakens the Reserve Bank’s independence and creates scope for political interference in interest rates.
“The fundamental fault of this legislation is that it doesn't transition existing board members into the monetary policy board. Further, and less importantly, the section 11 test of 'extreme circumstances' has not been defined, leaving a back door for political decisions on what should not be political. Managing our economy is too important. We on this side of the House care about it, and we're not about to let the government wreck it. There's also an opportunity for Labor to stack the board, which they've already jumped at by appointing two former union officials to the board earlier in their term.”
Read the full speech in Hansard ↗ -
Garth Hamilton Hamilton opposes the bill, arguing it is really about giving the government more influence over the Reserve Bank and weakening its independence.
“When going through this piece of legislation and the intent that is clearly behind it, I think it's important for people who believe in the independence of the RBA to stand up and say, 'Things are bad, but it is not the fault of the RBA.' The RBA have a very clear mandate, a very clear target band that they have to bring inflation down to. That is their job. This side of the House absolutely stands by any measures that can be made to improve the board, the functioning and the way that the RBA works. We have been committed to that all the way through, and the shadow Treasurer's patience in working with the Treasurer on this bill all the way through is a demonstration of our willingness to engage in that process. But we must make this point very clear to Australians: this is not the RBA's fault. We are not here because of the RBA. The challenges you are facing in your economy are not because of the RBA. Do not listen to these attacks. These attacks were done as a prelude to this legislation coming through. They have a clear purpose, and it is not a purpose that aligns with the betterment of Australia. It is not a purpose that will help bring inflation down. It is not a purpose that'll make life easier for Australians and Australian households and businesses. It is purely a political purpose. It will enable the government of the day to influence and put pressure on the decisions of the RBA. I think that is a terrible situation.”
Read the full speech in Hansard ↗ -
Anne Webster Webster says the coalition will oppose the bill because it wants certainty and stability at the Reserve Bank, and it argues Labor is trying to interfere with an independent institution.
“The coalition does not support this bill. We worked on a bipartisan position for over 18 months, but we are now at a point where, as the shadow Treasurer said this week, we need certainty and stability, not more change, at the Reserve Bank. The RBA is under unprecedented attack from this Albanese the Labor government and some of their proxies in the retired Labor operative space, as I will go into later. Even Gough Whitlam acknowledged the need for his ministers to fly economy, not first class, during a cost-of-living crisis his government faced. This government would make Gough Whitlam blush, such is the Albanese Labor government's bluster, trickery and gaslighting of Australians.”
Read the full speech in Hansard ↗ -
Michael McCormack McCormack says the coalition will not support the bill because it goes too far in opening the door to government interference in the Reserve Bank’s independence and could enable a stitch-up of the new board.
“Following this and what I would say are extraordinary interventions of the Treasurer and his surrogates in just the past week, the coalition will not be supporting this bill.”
Read the full speech in Hansard ↗ -
James Stevens James Stevens says the opposition will not support the bill because the government has pushed Reserve Bank reform without bipartisanship and is politicising an institution that should stay independent.
“We regret that we're not having a debate where there is genuine bipartisan support for reform to the Reserve Bank Act. That's very disappointing because it's the sort of thing that should have bipartisan support. When the Hawke-Keating government undertook the reforms that they undertook, that included central bank reform and, most importantly, things like floating the Australian dollar and having a market mechanism for the determination of the Australian dollar, which was politically difficult terrain to traverse. That was done with the support of the then opposition. Whilst what's in this bill is not in the league of those dramatic reforms, it's in the category of them, and it's really disappointing that the government's attitude is that they don't want to work with us in reform that everyone can support to something as significant in our economy as the governance of the Reserve Bank. With those comments, I urge the House not to support the second reading of this bill.”
Read the full speech in Hansard ↗ -
Keith Wolahan Wolahan says the coalition cannot back the bill because the government broke trust in the negotiations and is trying to blame the Reserve Bank instead of fixing the economic pressures driving higher rates and weaker living standards.
“It would have been nice to have worked together on this, but trust was obliterated when the government and the Treasurer sought to avoid responsibility for the very thing they have been elected to deal with.”
Read the full speech in Hansard ↗ -
Bert Van Manen Van Manen opposes the bill because he says it would hand too much power to an unelected body and weaken democratic accountability over the Reserve Bank.
“Hence I fully support the position that we as a coalition have now taken to oppose this bill, because I believe that the structure of the Reserve Bank should be retained, along with section 11. While I accept it has never been used, I believe fundamentally, for the protection of our democracy, that that provision should be retained because we never can say categorically in the future that we know that at some point that won't need to be used, heaven forbid. I hope it never has to be used. I hope that the cordial working relationship between the government of the day and the Reserve Bank is maintained and strengthened for the benefit of our country as a whole. I think the words from the 1935 royal commission report remain as valid and prescient today as they were then. I oppose the bill, and I am pleased that as a coalition we have taken the position that we have.”
Read the full speech in Hansard ↗
Greens
2 speakers · 2 oppose
Greens
2 speakers · 2 oppose
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Max Chandler-Mather Chandler-Mather opposes the bill because he says it would strip the federal government of its power to override the Reserve Bank and cut interest rates, leaving mortgage holders and renters to bear the cost of inflation.
“The Greens are fighting hard to protect the current power that the federal government has to override the Reserve Bank of Australia and cut interest rates, because that is an important element of a democracy.”
Read the full speech in Hansard ↗ -
Elizabeth Watson-Brown Watson-Brown opposes the bill because she says it strips away democratic oversight of the Reserve Bank and leaves renters and mortgage holders worse off.
“This bill, in its current form, again illustrates Labor's failure to stand up to the banks and the corporations—indeed, its comprehensive capture by them.”
Read the full speech in Hansard ↗
Record
Full record
- Act title
- Treasury Laws Amendment (Reserve Bank Reforms) Act 2024
- Act number
- Act No. 96, 2024
- Became law
- 29 Nov 2024
- Takes effect
- The whole of this Act 01 Mar 2025
- Registered
- 05 Dec 2024
- Administered by
- Department of the Treasury
- Final law metadata was collected from the APH progress table; commencement rows were parsed from the bill text.
- Status
- Act -- Collected from the APH bill page.
- Originating house
- House of Representatives
- 29 Nov 2023
House · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 29 Nov 2023
House · Second reading moved
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. opened
A minister or sponsoring member moved the second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., opening the main debate on the bill's purpose and principles.
- 10 Sept 2024
House · Second reading debate
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. debate
The bill reached this recorded parliamentary step.
- 10 Sept 2024
House · Referred to Federation Chamber
Referred to Federation Chamber
The bill reached this recorded parliamentary step.
- 11 Sept 2024
House · Second reading debate
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. debate
The bill reached this recorded parliamentary step.
- 12 Sept 2024
House · Reported from Federation Chamber
Reported from Federation Chamber
The bill reached this recorded parliamentary step.
- 12 Sept 2024
House · Second reading agreed to
Recorded vote: 83 to 60.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed
The chamber agreed to the bill at second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., meaning it accepted the bill in principle and allowed it to continue.
- 12 Sept 2024
House · Consideration in detail debate
Consideration in detail
The chamber considered the bill in detail and dealt with amendments before the next stage.
- 12 Sept 2024
House · Third reading agreed to
Recorded vote: 82 to 59.
Third reading agreed
The chamber agreed to the bill at third reading, which completed passage through that chamber.
- 16 Sept 2024
Senate · Introduced and read a first time
Introduced
The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.
- 16 Sept 2024
Senate · Second reading moved
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. opened
A minister or sponsoring member moved the second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., opening the main debate on the bill's purpose and principles.
- 28 Nov 2024
Senate · Second reading agreed to
Recorded vote: 31 to 26.
Second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work. agreed
The chamber agreed to the bill at second readingThe stage where Parliament votes on whether it agrees with the bill in principle before detailed amendment work., meaning it accepted the bill in principle and allowed it to continue.
- 28 Nov 2024
Senate · Amendments considered
Recorded vote: 31 to 26.
Amendment packages agreed
The chamber considered amendments before the bill moved to the next stage.
- 28 Nov 2024
House · Consideration of Senate message
House agreed to Senate amendments
The House dealt with Senate amendments or requests so both chambers could settle the bill in the same form.
- 28 Nov 2024
Parliament · Finally passed both Houses
Passed both houses
Both houses passed the bill in the same form, completing parliamentary passage.
- 29 Nov 2024
Assent · Assent
Assent
The Governor-General gave Royal AssentThe final approval a bill receives from the Governor-General before it becomes law., turning the bill into an Act.
Senate Economics Legislation Committee; Committee report (22/03/2024)
Referred to committee
Referred to Committee (7 Dec 2023): Senate Economics Legislation Committee; Committee report (22 Mar 2024)
APH bill page notes