Coalition accuses Treasurer Jim Chalmers of trying to put 'mates' on ...

Shadow Treasurer Angus Taylor has accused Jim Chalmers of seeking to politicise the Reserve Bank by "stacking the board with his mates".

Mr Chalmers has a bill before the parliament to reshape the RBA, in line with the recommendations of an independent review.

He has repeatedly stressed he wants bipartisan support for the bill, saying the RBA should be "above politics".

Mr Taylor was consulted for the review and initially spoke favourably about the prospects of bipartisanship.

But this has now fallen apart over the question of board membership.

The bill seeks to create two boards instead of one: a board to make interest rate decisions, and another board to take care of corporate governance.

Those on the interest rate board will have an expanded role, including regular speeches.

They will also have fresh selection criteria, prioritising a range of expertise including technical expertise, which the reviewers said was lacking under current arrangements.

But Mr Taylor objects to the fact that the current proposal would allow the government to decide who goes on which board.

"The transition of the existing RBA board … has been consistently raised with the treasurer and his office since the first meeting," he said.

"The treasurer should not be given the option of stacking the board with his mates. It is abundantly clear Jim Chalmers wants to spill the board and stack it with his mates."

The Coalition will seek to amend the government's bill to require that all current members transition onto the interest rate board. Mr Taylor envisages some could also serve on the governance board.

Treasury has already put out job ads for the new monetary policy board.

Mr Chalmers has downplayed the likelihood of making a large number of personnel changes.

A spokesperson for Mr Chalmers said he wanted "continuity", but that this meant "continuity on both the monetary policy board and the governance board".

That is similar language to that used by RBA governor Michele Bullock yesterday.

It leaves open the possibility that several of the current board members could end up on the governance board and lose their interest-rate setting role.

Governor of the Reserve Bank of Australia Michele Bullock speaks to the media during a press conference in Sydney, Tuesday, February 6, 2024.(AAP: Bianca De Marchi)

Mr Chalmers has said he plans to consult with Ms Bullock and the board members themselves.

"Whether that's a couple of people [moving to the] governance [board] or some other number, that remains to be seen," he said last week.

"I'd like to hear from them what they would like to do in the first instance."

With this language, he raised the prospect that some current board members may not even want to move across.

The Coalition amendment would mean board members in that position would transfer over but could then decide to resign, rather than leaving the decision up to the government.

The stance likely stems from Mr Taylor's objections to two recent part-time appointments to the current board: that of former Fair Work president Iain Ross and and Elana Rubin, who is on the board of Telstra and law firm Slater and Gordon.

Both are former union officials, whom Mr Chalmers said had "high levels of skill and experience".

A spokesperson for the treasurer rejected the suggestion the government wanted to stack out the board, but defended the government's right to make appointments based on its own assessment of relevant experience.

The government recognises that any sweeping changes could spook markets and undermine public confidence in the board. It also sees the same risk in a political fight over this bill.

"We will continue consulting with the opposition and are committed to working in a bipartisan way to pass this bill," the spokesperson said.

But the status of that bipartisanship is up in the air. Mr Taylor today called the government's commitment to bipartisanship "a lie" and it's unclear whether the Coalition will vote for the bill if it doesn't get its way.

Another possible sticking point is whether the treasurer should retain the power to override interest rate decisions. That power has never been used, but former RBA governors told a Senate inquiry last month they believed it should nonetheless remain.

That Senate inquiry is expected to hand down its final report on Friday.

The Coalition is expected to confirm its position on the bill after that.