Opposition also raises concerns over aged care fees
The Coalition has pulled out of talks with the Albanese government over proposed reforms to the Reserve Bank of Australia (RBA) and raised concerns about pending aged care fee increases.
Recent reports revealed that the Coalition would oppose Labor’s plan to establish a new board focused on setting interest rates at the RBA, citing fears that the government could influence the board’s composition.
In response, treasurer Jim Chalmers (pictured above) signalled that the government may seek the support of the Greens to push the RBA reforms through Parliament. The Greens have called for the government to retain the power to override the central bank and reverse recent interest rate hikes.
In a report by The Guardian on Tuesday, Chalmers criticised the opposition’s stance, labelling it “irresponsible” and “disappointing.” He accused opposition leader Peter Dutton of negativity and suggested House member Angus Taylor had backtracked from earlier support for the changes.
Chalmers defended the proposed reforms, stating they aimed to enhance the RBA’s independence, governance, and transparency. He added that six concessions had been made during negotiations with Taylor, including keeping the RBA governor as chair of the new governance board and ensuring current board members could transition to the new structure.
Despite these efforts, Chalmers indicated he would prefer to pass the reforms with Greens’ support rather than abandon the bill altogether.
Labor opens door to negotiating with Greens on RBA reforms after Coalition blocks proposal https://t.co/Gy17EMiWnh
— The Guardian (@guardian) September 10, 2024
Taylor, speaking separately, stressed that the RBA “needs stability and certainty” and accused the government of failing to tackle inflation effectively. He argued that Labor does not share the Coalition’s commitment to an independent and credible central bank.
Meanwhile, the Greens have expressed their desire to maintain government oversight of the RBA, with economic justice spokesperson Nick McKim warning against what he described as a surrender to neoliberal interests. He urged Chalmers to intervene, citing the impact of high interest rates on mortgage holders and renters.
The Coalition also remains in talks with the government over aged care reform, demanding more clarity on potential fee hikes for self-funded retirees in residential care and voicing concerns about union representation in the sector. A tentative agreement had been reached in August to increase accommodation and meal fees, but new issues have since emerged.
The aged care minister, Anika Wells, had previously secured the Coalition’s support after agreeing to drop proposed criminal penalties for substandard care. However, Dutton informed the Coalition party room that further details, including the definition of wealth thresholds for increased charges, needed to be addressed.
A Coalition spokesperson confirmed ongoing discussions but noted that significant questions remain unanswered, particularly around the content of subordinate regulations that are yet to be disclosed.
“The Coalition remains in good faith discussions with the government on their aged care legislation, but there remain significant details that the government has not confirmed,” the spokesperson was quoted as saying in The Guardian report.
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