Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Jim Chalmers MP)General outline and financial impact
Implementation of Government response to the RBA Review
Outline
The Bill amends the RB Act and the Banking Act to implement the Government's response to the RBA Review. The amendments strengthen the RBA's governance framework, monetary policy framework, structures and systems. The Bill establishes a separate Monetary Policy Board and Governance Board and reinforces the independence of the RBA in the operation of monetary policy.
Date of effect
The amendments commence on the later of:
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- the first day of the next calendar month following the end of the period of three months starting on the day after Royal Assent; and
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- 1 July 2024.
Proposal announced
This Bill partially implements the Government's response to the RBA Review, announced on 20 April 2023.
Financial impact
The changes will have a financial cost for the RBA, which it will manage through its internal budget. This includes the remuneration of additional statutory appointees.
The RBA does not receive an annual appropriation, and is not currently expected to pay a dividend to Government for a number of years (however, transfers from the RBA's earnings in the future will be formally determined by the Treasurer after consulting the RBA each year). It is therefore unlikely that the proposed changes will have a direct Budget impact.
Human rights implications
This Bill does not raise human rights issues. See Statement of Compatibility with Human Rights - Chapter 2.
Compliance cost impact
This measure does not have any impact on compliance costs.