Peter Dutton’s opposition has withdrawn from negotiations with the Albanese government over proposed changes to the Reserve Bank and thrown up new roadblocks to a potential deal on raising aged care fees.
On Tuesday the Australian Financial Review reported the Coalition would block Labor’s attempt to create a new specialist interest rate-setting board at the RBA, due to concerns the government could stack the committee. The shadow treasurer, Angus Taylor, later confirmed the report.
In response, the treasurer, Jim Chalmers, opened the door to seeking to pass RBA governance reforms with support instead from the Greens, who want Labor to retain a power to override the central bank and overturn recent interest rate rises.
Chalmers told reporters in Canberra that the opposition’s position was “irresponsible … [and] disappointing but it’s not especially surprising given Peter Dutton’s pathological negativity and Angus Taylor’s weakness”.
Chalmers argued that Taylor had “been rolled once again”, citing his earlier support for the changes that the shadow treasurer had said “will clarify the Reserve Bank’s monetary policy role, strengthen its governance arrangements, improve the transparency of its decision-making and deepen its economic expertise”.
“The Reserve Bank’s reforms are all about making the RBA more independent, not less independent,” Chalmers said.
Chalmers outlined six concessions he had made in negotiations with Taylor, including that the chair of the governance board be the governor and an amendment so that all current board members move to the monetary policy board unless they don’t want to.
The treasurer said a bipartisan deal was still his “preference”, but he would prefer passing the bill with Greens’ support than dropping the bill.
Taylor told reporters in Canberra that the Reserve Bank “needs stability and certainty”, accusing the government of “losing the fight against persistent inflation”.
“The government clearly doesn’t share our commitment to an independent, credible, capable Reserve Bank,” he claimed.
The Greens want the government to retain the power to override the RBA and a separate provision in the Banking Act that allows the RBA to direct banks where to lend money it creates through quantitative easing.
The Greens’ economic justice spokesperson, Nick McKim, said “removing democratic oversight over the RBA would be Labor’s final capitulation to the power of capital, and to the neoliberal agenda”.
“High interest rates are crushing mortgage holders and renters,” he said. “Jim Chalmers needs to step in now to give them relief.”
Coalition ‘seeking clarification’ on aged care reforms
The Coalition is still negotiating on the government’s aged care reforms, now demanding to see proposed regulations relating to whether self-funded retirees in residential care could be slugged more and raising objections to “surprise new provisions” about union representation in the sector.
The aged care minister, Anika Wells, had hoped the Coalition would help Labor pass its aged care reforms, after reaching an in-principle agreement in August to changes expected to increase charges for residential accommodation and food.
Labor has made concessions including dropping its proposal for criminal penalties for directors for sub-standard care.
An update to the Coalition party room on Tuesday from Dutton revealed the opposition will raise further issues including regulations defining how wealthy residents have to be before greater charges apply.
A Coalition spokesperson said: “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.
“With the opposition having only received the government’s 550 page bill a week ago, we are seeking clarification from the government on the details that will be contained in so-far-unseen subordinate regulations, and on surprise new provisions.
“This is the kind of detail that older Australians and their families deserve to know.”
