Reserve Bank (Governance Board Chair and Deputy Chair) Appointments (No. 1) 2024

Overview

The Reserve Bank (Governance Board Chair and Deputy Chair) Appointments (No. 1) 2024 instrument, enacted by the Treasurer, Jim Chalmers, under the authority granted by subsection 25NC(1) of the Reserve Bank Act 1959 and subsection 4(2) of the Acts Interpretation Act 1901, serves to appoint Ms Michele Bullock as the Chair of the Governance Board for a term beginning on 1 March 2025 and ending on 28 February 2030. Additionally, it appoints Ms Carol Schwartz AO, an external member of the Governance Board, as Deputy Chair for a term beginning on 1 March 2025 and ending on 28 February 2027. This legislative instrument addresses the need for clear and timely appointments to key positions within the Reserve Bank’s Governance Board, ensuring continuity and stability in leadership during a critical period for the Bank’s governance and oversight functions.

Scope and Application

The Reserve Bank (Governance Board Chair and Deputy Chair) Appointments (No. 1) 2024I appoints Ms Michele Bullock as Chair and Ms Carol Schwartz AO as Deputy Chair of the Governance Board, applicable to the Reserve Bank Act 1959 and Acts Interpretation Act 1901. The appointments pertain to the roles within the Governance Board, governing the Reserve Bank of Australia, and are in effect from 1 March 2025 to specified dates in 2030 and 2027, respectively. This legislation applies to the individual appointments themselves and the operational framework of the Reserve Bank, impacting the roles of the Chair and Deputy Chair within the Governance Board. The geographic reach of this Act is national, as it pertains to the central banking system of Australia. There are no exclusions, exemptions, or specific thresholds outlined in the text of the instrument itself. The application and enforcement of this appointment may be further detailed or extended through subordinate instruments issued under the authority of the Reserve Bank Act 1959.

Key Provisions

The key operative sections of the Reserve Bank (Governance Board Chair and Deputy Chair) Appointments (No. 1) 2024I include the appointment of Ms Michele Bullock as the Chair of the Governance Board, effective from 1 March 2025 until 28 February 2030, and the appointment of Ms Carol Schwartz AO as the Deputy Chair, effective from 1 March 2025 until 28 February 2027. These appointments are made under the authority of subsection 25NC(1) of the Reserve Bank Act 1959 and subsection 4(2) of the Acts Interpretation Act 1901, ensuring that the appointments are made in accordance with legislative requirements (sections 1(a) and 1(b)). The Act imposes specific obligations on the appointed individuals, Ms Michele Bullock and Ms Carol Schwartz AO, as they assume their roles as Chair and Deputy Chair, respectively. Their duties will include overseeing the governance of the Reserve Bank, ensuring compliance with relevant laws and regulations, and participating in strategic decision-making processes. Both appointees must act in the best interests of the Reserve Bank and its stakeholders, maintaining the integrity and stability of the Australian financial system (sections 1(a) and 1(b)). In the event of any breach of the terms and conditions associated with their appointments, the Act does not explicitly outline specific offences, penalties, or consequences. However, given the nature of their roles and responsibilities, any failure to adhere to their obligations could potentially lead to disciplinary actions, including removal from office. The seriousness of such breaches would likely be assessed on a case-by-case basis, with potential repercussions including reputational damage and loss of trust in the Reserve Bank’s governance structure (sections 1(a) and 1(b)). Overall, the Act ensures that the appointments of Ms Michele Bullock and Ms Carol Schwartz AO are clearly defined, with specific terms and conditions that align with the broader governance framework of the Reserve Bank. While the Act does not specify particular penalties for breaches, the high-stakes nature of their roles implies that any failures to meet their obligations could have significant implications for both the individuals and the institution they serve (sections 1(a) and 1(b)).