Treasury Laws Amendment (Reserve Bank Reforms) Act 2024 (96 of 2024)

Schedule 1   Amendments

Part 4   RBA's Boards and governance

Reserve Bank Act 1959

17   Sections 8A to 10

Repeal the sections, substitute:

Division 3 - The Boards of the Bank

Subdivision A - Overview

9 Overview

(1) The Bank has 3 Boards:

(a) the Monetary Policy Board (see Subdivision B); and

(b) the Payments System Board (see Subdivision C); and

(c) the Governance Board (see Subdivision D).

(2) The Governor is to resolve any disagreements between the Boards.

Subdivision B - The Monetary Policy Board

9A Establishment of the Monetary Policy Board

The Monetary Policy Board of the Reserve Bank is established by this section.

9B Functions of the Monetary Policy Board

(1) The functions of the Monetary Policy Board are:

(a) to determine the monetary policy of the Bank in a way that, in the Board's opinion, best contributes to:

(i) price stability in Australia; and

(ii) the maintenance of full employment in Australia; and

(b) to determine the policy of the Bank (other than the payments system policy of the Bank) for contributing to the stability of Australia's financial system; and

(c) to promote the proper, efficient and effective implementation by the Bank of the policies mentioned in paragraphs (a) and (b); and

(d) any other functions conferred on the Board by this Act; and

(e) to do anything incidental or conducive to the performance of any of the above functions.

Note: One way the Monetary Policy Board contributes to the achievement of the Bank's overarching objective is by determining the policies mentioned in paragraphs (a) and (b).

(2) The Monetary Policy Board has the power to do all things necessary or convenient to be done for or in connection with the performance of its functions.

(3) However, the Monetary Policy Board must perform its functions and exercise its powers having regard to the duties of the Governance Board as the accountable authority of the Bank for the purposes of the Public Governance, Performance and Accountability Act 2013.

(4) Without limiting section 87 (about the validity of acts of the Bank), any failure by the Monetary Policy Board to comply with subsection (3) of this section does not:

(a) affect the validity of the Board's performance of its functions or the exercise of its powers; or

(b) give rise to an action or other proceeding for damages.

Subdivision C - The Payments System Board