Treasury Laws Amendment (Reserve Bank Reforms) 2023

# Treasury Laws Amendment (Reserve Bank Reforms) 2023 ## What it does This law restructures how the Reserve Bank of Australia (RBA) operates by creating two separate boards — one focused on interest rates and monetary policy, and another handling overall governance. It also requires the RBA to keep the government informed about its decisions while maintaining its independence from political pressure. ## Why it matters The RBA makes decisions that affect your mortgage rates, inflation, and employment. These reforms aim to make the bank more accountable to the public and government while preventing politicians from directly controlling interest rate decisions — a balance between transparency and protecting the economy from short-term political interference. ## Key details - **Two-board structure**: A "Monetary Policy Board" sets interest rates (keeping day-to-day decisions independent), and a separate "Governance Board" handles the bank's overall running and must keep the Treasurer informed about major decisions. - **Commencement date**: The changes take effect on the later of July 1, 2024, or three months after the bill receives Royal Assent — giving the RBA time to reorganise before implementation. - **RBA still independent on rates**: The bank retains control over interest rate decisions without government veto, but must regularly report to the government about *why* it's making those decisions.

🔒 Voting closed — this bill has been decided by parliament