The Coalition would object to the appointment of "somebody who is familiar" to the government as Reserve Bank of Australia governor, Opposition Leader Peter Dutton has warned.
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Adopting a position that could scuttle government attempts to secure bipartisan support for a possible successor to incumbent Philip Lowe, Mr Dutton said independence was the most important consideration "given the significance of the [central bank]".
"We can't have a situation where the government is appointing somebody who is familiar to the government, in the sense that they've worked very closely with Ministers, or with the Treasurer, or with the Finance Minister," the Opposition leader said. "We can't have somebody who has been appointed by the Labor Party, or indeed by the Coalition, to a senior position within government."
Climate Change and Energy Minister Chris Bowen condemned Mr Dutton's comments, describing them as an "insult" to public servants.
"Mr Dutton should respect that whoever is RBA governor at any given time will be governing themselves with all rigour and independence. I think Mr Dutton should reflect on his comments," Mr Bowen said.
The Opposition leader's remarks appear to rule out the possibility of bipartisan support for many of those considered to be frontrunners for the RBA governor position if the government decides to replace Dr Lowe.
Several of those thought to be on the shortlist, including Treasury secretary Steven Kennedy, Finance Department secretary Jenny Wilkinson and Australian Statistician David Gruen, are in positions that entail working closely with the government and so could fall foul of Mr Dutton's criteria.
Of the others who are most regularly talked about as possible successors to Dr Lowe and would meet the Opposition leader's demands, both are or have been senior RBA officials - current RBA deputy governor Michelle Bullock and former deputy governor Guy Debelle (who resigned from the central bank in March 2022).
The appointment of either would essentially continue the tradition of appointing an RBA insider to the governorship.
Dr Lowe's seven-year term at the helm of the RBA ends in September, and Treasurer Jim Chalmers has said a decision on the future of the position will be made by the end of this month.
Dr Chalmers said on Wednesday that he will be a taking a recommendation on the RBA governorship to federal cabinet "soon".
While decisions on the appointment of the RBA governor are solely up to the government, the Treasurer has consulted with Opposition treasury spokesman Angus Taylor and said he would take the Opposition's views "seriously".
"This is one of the biggest appointments that the government will make. It's a big job and it's a big call," Dr Chalmers said.
"I'm not obligated to consult with the Opposition on the appointment of the Reserve Bank governor but I want to be consistent with the spirit of the RBA review and that's why I have provided an opportunity for the Opposition to feed in their view.
"We will appoint someone who has the necessary experience and expertise and who can help bed down the recommendations of that really important Reserve Bank review - because our interest here is in ensuring we get the best possible central bank."
Mr Dutton said whoever was pointed to the "tough and thankless job" needed to be "somebody who is independent, who has the best interests of the Australian public in mind".
"The Coalition wants to be in a position where we can provide bipartisan support because we shouldn't underestimate the significance of the institution of the Reserve Bank of Australia," he said.
But the tight parameters set by the Opposition could make it hard for the government to achieve bipartisan support for its pick.
Senior Opposition figures have in recent weeks been vocal in their support of Dr Lowe.
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Opposition finance spokeswoman Jane Hume last week defended the current governor, who she said had been "unfairly demonised" by the government.
Dr Lowe was "one of the most qualified economists in the country," Senator Hume said. "I think he's done an exceptional job in difficult circumstances for many years."
She doubted the wisdom of changing the governor in the current circumstances, arguing that "consistency is very much the key to managing the economy".
The possibility of a change of governor comes at a significant time for the central bank, which is not only in the midst of an aggressive campaign of rate hikes to bring inflation down but is also implementing far-reaching changes to its board and how it manages and communicates monetary policy.
On Wednesday, Dr Lowe announced that from next year the RBA board would meet eight times a year - down from 11 - and each meeting would be followed by a media conference involving the governor.
The implementation of further changes, including the appointment of an expert advisory group and the publication of board votes, has been deferred.