Treasurer Jim Chalmers has come out swinging at the Coalition after failing to find common ground on a significant Reserve Bank (RBA) overhaul. At a press conference, Chalmers blasted Shadow Treasurer Angus Taylor and Opposition Leader Peter Dutton for blocking the reforms. He accused Dutton of his usual “pathological negativity” and Taylor of being “weak” for not convincing his party to back the changes.
The proposed reforms were intended to give the RBA more independence by establishing two separate boards: one to handle governance and another to set monetary policy, such as interest rates. The plan was initially welcomed by Taylor, but last night, the Coalition confirmed it would not support the changes, fearing the government might “stack” the RBA board with its own picks.
Chalmers didn’t mince words, stating Taylor had been “rolled” by Dutton and was unable to push through the necessary support. According to Chalmers, he had made several efforts to work with Taylor, including three meetings and multiple written exchanges. The treasurer had even offered to tweak the legislation to address Taylor’s concerns, but it wasn’t enough to win over the Coalition.
The RBA reforms had received backing from the bank’s new governor, Michele Bullock, who supported the move 100%. However, Chalmers emphasised that he preferred bipartisan agreement on such a critical issue, even though the Greens expressed interest in negotiating their own deal. Chalmers acknowledged the option of directly talking with Dutton but said it was “for better or worse” more appropriate to deal with Taylor.
While the Coalition remains concerned about the possibility of board stacking, Chalmers isn’t giving up. He’s still looking for a way to push the reforms forward but insists that a bipartisan agreement is the best way to ensure the RBA’s independence is strengthened for the future.
In contrast, Taylor fired back during a radio interview, claiming the government had dropped the ball and was now just playing the blame game. According to him, the Coalition is open to reforms that truly enhance the RBA’s independence, but the current draft leaves the door open for political interference, something the Coalition won’t accept. The debate over the future of Australia’s central bank is far from over, with both sides digging in for a continued standoff.