{"id":23154,"date":"2026-02-19T06:45:12","date_gmt":"2026-02-19T06:45:12","guid":{"rendered":"https:\/\/microvibenews.com\/?p=23154"},"modified":"2026-02-19T06:45:12","modified_gmt":"2026-02-19T06:45:12","slug":"tim-wilson-walks-back-suggestion-liberals-would-rethink-rba-full-employment-mandate-australian-politics","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=23154","title":{"rendered":"Tim Wilson walks back suggestion Liberals would rethink RBA full employment mandate | Australian politics"},"content":{"rendered":"

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The new shadow treasurer, Tim Wilson<\/a>, says he does support the Reserve Bank\u2019s twin objectives after his call for a more targeted focus on taming inflation was decried as a strategy to drive up interest rates and unemployment.<\/p>\n

Just two days into the new role, Wilson signalled to the Nine papers<\/a> that the opposition would review the legislated mandate that requires the bank to maintain equal focus on two goals: keeping inflation within its 2% to 3% target band and achieving full employment.<\/p>\n

Wilson suggested the RBA\u2019s \u201ccore purpose\u201d should be to lower inflation, after an unexpected jump in prices growth prompted Michele Bullock\u2019s board<\/a> to hike rates for the first time in two years earlier this month.<\/p>\n

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The comments were immediately seized upon by the treasurer, Jim Chalmers<\/a>, and the Australian Council of Trade Unions secretary, Sally McManus, who said Wilson\u2019s approach would mean higher interest rates and unemployment.<\/p>\n

\u201cThe dual mandate has been a mainstay of Australian economic policy since it was formalised by John Howard and Peter Costello and has been supported by both sides of politics and the independent Reserve Bank,\u201d Chalmers said.<\/p>\n

\u201cThis radical departure from that bipartisanship is an early sign of Tim Wilson\u2019s extreme ideology on the economy that would see more people out of work if ever he got his hands on the levers.\u201d<\/p>\n

McManus said Wilson\u2019s \u201cdisgraceful\u201d suggestion echoed the view of sections of big business, which wanted a large pool of unemployed workers in order to suppress wages.<\/p>\n

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In an interview with Guardian Australia, Wilson said he \u201ccertainly support(s) the dual mandate\u201d.<\/p>\n

But the Goldstein MP argued the bank was failing to deliver on that mandate, insisting it was not putting enough emphasis on curtailing inflation.<\/p>\n

The headline monthly inflation rate was 3.8% in the year to December<\/a>, up from a low of 1.9% in June of last year.<\/p>\n

\u201cThey have got it wrong, and I think they\u2019ve got it wrong in multiple periods where we\u2019ve ended up in a situation where we\u2019ve got inflation that has been led to be out of control. And you know, Australia, to be blunt, doesn\u2019t have an unemployment problem presently,\u201d Wilson said.<\/p>\n

\u201cThey\u2019ve clearly misread inflation, so they\u2019re clearly not putting enough emphasis on inflation. And they basically had to admit publicly that they thought inflation was under control.\u201d<\/p>\n

Wilson was open to some form of review of the RBA\u2019s mandate but is not proposing to remove the employment objective.<\/p>\n

\u201cThe dual mandate is about balance, and the objective isn\u2019t to crash the private economy, but that is what Australians are now living through higher inflation, lower annual wage growth and rising prices,\u201d he said.<\/p>\n

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The unemployment rate remained steady at 4.1% in January, according to Australian Bureau of Statistics figures published on Thursday.<\/p>\n

The new opposition leader, Angus Taylor, did not respond directly when asked if the bank\u2019s dual mandate should be scrapped but backed Wilson\u2019s argument that inflation was too high.<\/p>\n

\u201cI absolutely support Tim Wilson\u2019s opinion that inflation is too high in this country and everything reasonable should be done to make sure that we get that inflation down and we get interest rates down, we restore our standard of living, and we give Australians hope again,\u201d Taylor said.<\/p>\n

\u201cThat\u2019s what Tim wants to see, and he has made a strong point that there needs to be a very strong focus from the Reserve Bank and, more importantly, the government, that has been letting Australians down on getting inflation down.\u201d<\/p>\n

In a separate intervention on Thursday, Wilson told The Australian that the 47% top marginal tax rate \u2013 which applies to incomes above $190,000 \u2013 was \u201cpunitive\u201d and a disincentive to work, leaving the door open to changes as part of a wider vision to lower income taxes.<\/p>\n

Wilson called for a \u201crobust conservation\u201d about the tax settings, which he said should be geared towards encouraging Australians to \u201ctake risks\u201d such as setting up small businesses.<\/p>\n

\u201cIf you tax something, you are going to discourage it. If you lift the tax or reduce the tax, or provide tax relief, you will incentivise that behaviour,\u201d he said.<\/p>\n