The Reserve Bank of Australia is an independent central bank with responsibility for monetary, financial system and payments system policies, and other financial matters. The Bank has two boards: the Reserve Bank Board, which has responsibility for monetary policy and financial stability and the Bank's policy on other matters excluding payments system policy; and the Payments System Board, which has responsibility for matters relating to payments system policy. This governance structure is set out in the Reserve Bank Act 1959. Subject to those matters, the Bank is managed by the Governor. The Public Governance, Performance and Accountability Act 2013 (PGPA Act) also imposes particular responsibilities on the Governor concerning management of the Bank.
The Reserve Bank Board has an Audit Committee and a Remuneration Committee. The primary objective of the Audit Committee is to report to the Board on matters relevant to the fulfilment of the Bank's statutory financial reporting and other obligations in terms of the Reserve Bank Act and the PGPA Act. The Committee assists the Governor and the Board in fulfilling their obligations relating to financial reporting, risk management and fraud control, and regulatory compliance. The Remuneration Committee makes recommendations to the Board on the remuneration of the Governor and Deputy Governor in terms of the Reserve Bank Act and the framework and guidelines set by the Remuneration Tribunal, and is also kept informed of the general remuneration arrangements for Reserve Bank staff.
Following appointment to the Reserve Bank Board or Payments System Board, each member is required under the Reserve Bank Act to sign a declaration to maintain secrecy in relation to the affairs of the particular Board and the Reserve Bank. Further, by law, members must comply with the general duties of officials of Commonwealth entities, as set out in the PGPA Act. Over and above these requirements, members of each Board have also adopted a Code of Conduct in recognition of their responsibility for maintaining a reputation for integrity and propriety on the part of the Reserve Bank Board, the Payments System Board and the Reserve Bank.