The plan to comprehensively reform the Reserve Bank of Australia, including splitting its board into two, is almost certain to become law. The government led by Australian Prime Minister Anthony Albanese will push for dozens of bills to be passed on the last parliamentary working day of the Senate this year.

After earlier negotiations broke down, the government and the minority Green Party reached a last-minute agreement on Thursday (November 28) to restart stalled legislation. The Green Party has been demanding that Finance Minister Jim Chalmers force the Reserve Bank of Australia to immediately cut interest rates, which would undermine its independence.

Chalmers initially sought to reach an agreement with the center right Liberal National Party alliance on central bank amendments, but negotiations broke down.

Nick McKim, spokesperson for the Green Party's Treasury Department, announced the agreement on Thursday afternoon, stating that the government has agreed to retain the power of the Treasury Minister to veto interest rate decisions, in accordance with Section 11 of the Reserve Bank of Australia Act.

McKim told reporters, "We now urge the Labour Party to effectively use this power to reduce mortgage loans and provide some relief for mortgage holders in Australia

The Green Party holds a large number of seats in the upper house of parliament, the Senate, which makes their support crucial for the passage of most major legislation.

An independent evaluation report on the central bank released last year recommended the repeal of Article 11, a power not used since the establishment of the Reserve Bank of Australia in 1960. But the former Minister of Finance and Chairman of the Central Bank later stepped forward and stated that the government should retain this veto power because it is important for elected representatives to maintain ultimate power over the central bank.

The Reserve Bank of Australia amendment is one of dozens of bills that the Labour government hopes to push through in the Senate within the next 24 hours (which could be the last parliamentary working day before next year's election).

This week, some lawmakers stated that they do not expect to return to parliament before the May elections, making Thursday Albanese 'last chance to pass its agenda as much as possible in both houses of Congress.

Albanese can launch a five week campaign at any time before May 17th. Given that the Australian economy is struggling under the pressure of high interest rates and the budget is expected to fall back into deficit, it is increasingly expected that Albanese will take swift action to avoid a further decline in Labour Party support.

According to the reform, the Board of Governors of the Reserve Bank of Australia will be divided into two institutions, one is the Monetary Policy Committee, and the other is the Board of Governors that manages the daily operations of the central bank. Although some review recommendations have been issued, including Chairman Brock holding a post meeting press conference and reducing policy meetings, the division of the board requires legislative changes.

Last September, the agreement reached with the Liberal National coalition broke down after Shadow Finance Minister Angus Taylor expressed concern that the government would fill the new Monetary Policy Committee with Labour supporters.

Brock will give a speech in Sydney on Thursday evening and answer questions after the speech.