Reforming the RBA so it gives equal weight to inflation targets and full employment when setting interest rates is a hugely important step for our nation, says ACOSS.
The RBA review released today recommends that price stability and full employment be given "equal consideration" when setting monetary policy.
ACOSS has long pushed for this change and welcomes the Treasurer's commitment to supporting it.
ACOSS CEO Cassandra Goldie said: "This change will help avoid harsh economic downturns that put hundreds of thousands of people out of paid work and make it harder for people to find jobs.
"High inflation is a serious challenge for people on low incomes who are already struggling to afford basic necessities such as food and shelter.
"But hiking up interest rates risks driving up unemployment, making it even harder for those seeking paid work hours.
"There are still more than 500,000 people on unemployment payments for more than a year - people who are overlooked by employers even now because of their age, disability, or caring responsibilities.
"People should be given a chance to find employment, not thrown back to the end of a longer job queue – and this change will help them do that."
ACOSS congratulates Elana Rubin, representing business, and Ian Ross, as a labour market expert, on their appointments to the Monetary Policy Board.
Dr Goldie said: "We welcome the stronger focus on diversity in the governance, decision-making and leadership of the Board. The diversity must include representation of the interests of people who are the most disadvantaged, outside the labour market and struggling the most to deal with inflation and unemployment.
"We also need to see community and human services sector perspectives reflected, recognising that our sector is likely to be one of the major areas of growth in employment and the economy."
