The Treasury Laws Amendment (Reserve Bank Reforms) Bill 2023 was passed by both Houses of Parliament and received Royal Assent on 29 November 2024. It will commence on 1 March 2025.

The Bill amends the Reserve Bank Act and the Banking Act to implement the Government’s response to the RBA Review.

The amendments replace the existing Reserve Bank Board with a new Monetary Policy Board and Governance Board.

The Monetary Policy Board is responsible for the monetary and financial system stability policies of the RBA.

The Governance Board is the accountable authority of the RBA. It determines the policy of the RBA with
respect to matters relevant to the functions of the RBA but not within the remit of the Monetary Policy Board or the Payments System Board.

The Payments System Board continues to set payments system policy.

The amendments modify the legislative objectives for monetary policy, to clarify the accountabilities of the RBA. The overarching objective of the Bank is to promote the economic prosperity and welfare of the people of Australia both now and into the future.

The amendments also remove the Government’s power to override decisions of the Reserve Bank Board, and remove the RBA’s power to determine the lending policy of banks.

The amendments commence on 1 March 2025.

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Author: David Jacobson
Principal, Bright Corporate Law
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The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.