Jim Chalmers, Treasurer, is willing to negotiate with Greens on RBA legislation.

Treasurer Jim Chalmers stated that he is willing to negotiate with the Greens to secure the passage of Reserve Bank of Australia (RBA) reforms through the Senate, as the Coalition declined to support the bill due to concerns about board stacking.

Chalmers mentioned that while he still prefers a bipartisan agreement for passing the legislation, he is now open to exploring all options.

“We will assess the next steps. All possibilities are being considered, but my preference remains the same. I would prefer a bipartisan result in the Senate.”

In a press conference, Chalmers criticized the opposition for politicizing the RBA legislation, pointing to previous statements by Shadow Treasurer Angus Taylor, who had previously endorsed the reforms.

He accused Taylor of being “rolled again” by his Coalition colleagues. Chalmers highlighted that he has had numerous discussions with the opposition and the RBA governing board over the past year and a half, accommodating all amendments proposed by Taylor.

The opposition’s requests included appointing the RBA governor as the chair of the governance board, allowing flexibility in term limits, ensuring senior RBA executives oversee operations, and modifying section 11 while keeping it intact.

They also aimed to remove references to equal weight in the dual mandate and transition all current RBA board members to the monetary policy board unless they choose otherwise.

“The Shadow Treasurer raised six concerns, and I have taken his stance into account on every one of those six issues,” Chalmers stated.

Meanwhile, Liberal Senator Simon Birmingham voiced reservations, suggesting that the reforms appear to be focused on stacking the board with individuals close to the government.

“There was always a sense that this reform was more bureaucratic and administrative in nature, setting up separate boards and introducing additional complexities,” he remarked.

Birmingham also noted that Labor’s recent criticisms of the RBA have made their intentions “clear and transparent.”

However, Chalmers emphasized that RBA Governor Michele Bullock publicly endorsed the reforms, citing her November speech where she expressed full support for the changes.

On August 24, Taylor issued a statement affirming that the Coalition is committed to continuing negotiations in good faith but raised concerns about what he referred to as a “sack and stack strategy.”

Chalmers remains focused on establishing a new Governance Board and a new Monetary Policy Board.

“The recommendations from the review will clarify the Reserve Bank’s role in monetary policy, enhance its governance structures, improve decision-making transparency, and deepen economic expertise,” he added.