New details of Reserve Bank of Australia Governor Philip Lowe’s $1million salary package

The man responsible for setting interest rates in Australia is being paid more than $1 million a year as borrowers face another super-big rate hike next week.

The Reserve Bank of Australia’s latest annual report has revealed that Governor Philip Lowe received a total compensation package of $1,037,709 in the past fiscal year.

His base salary alone of $890,252 in 2021-22 would have been enough to buy a Brisbane home outright at an average price, while his total seven-figure salary would buy a typical home in Melbourne or Canberra.

On top of that, Dr. Lowe $8,870 in “benefits and other allowances” plus an additional $115,171 in pension contributions and $23,416 in long-service leave.

The governor praised the Reserve Bank’s “quiet professionalism” in its annual report after a scorching year in which he faced fierce criticism for suggesting that cash interest rates would remain at an all-time low of 0.1 percent “at the earliest” until 2024. . .

“The Reserve Bank is staffed by people who are strongly committed to serving the public interest,” he said.

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‘They do their job with a calm professionalism and with a very high standard.

‘Last year was another challenging year, but the staff has done more than well.’

The Reserve Bank has raised interest rates in six consecutive monthly board meetings since May, pushing the cash interest rate to a nine-year high of 2.6 percent.

Borrowers are experiencing the strongest rate hike since 1994.

The major banks are all expecting another rate hike on November 1, with inflation rising 7.3 percent in the year to September — the strongest rise since 1990.

The consumer price index is more than double the RBA’s 2 to 3 percent target, with Westpac forecasting a larger rate hike of 0.5 percentage points on Tuesday, pushing the spot rate to a new 10-year high of 3.1 percent. .

A borrower with an average mortgage of $600,000 would see his monthly repayments increase by $181 to $3,236 if Westpac’s prediction of a half-point increase comes true.

Just over six months ago, the same borrower owed $2,306 per month on their mortgage, meaning that with another big rate hike, someone will owe $930 more per month compared to early May.

In the table of remuneration reports, the total package of Dr. Lowe estimated at $1,037,709, but his reimbursement reference rate was estimated at $1,061,210 in the annual report.

His base salary of $890,252 in 2021-2022 alone would have been enough to buy a mid-price home in Brisbane. In addition, he was awarded $8,870 in “benefits and other allowances” plus an additional $115,171 in pension contributions and $23,416 in long-service leave

“No performance payments have been made to any person while holding these positions in 2021-22,” the annual report said.

Treasury also released its annual report Thursday, with department secretary Steven Kennedy paying a total of $809,496.

That compensation includes a base salary of $775,193 plus “other benefits and allowances” of $2,736 and $117,878 in pension contributions minus $86,312 in long-serving leave taken.

The heads of the Reserve Bank and Treasury are paid more than Prime Minister Anthony Albanese at $564,356 and Treasurer Jim Chalmers at $406,988.

A Member of Parliament has a base salary of $217,060, a level more than double the Australian’s average full-time salary of $92,030.

Former Reserve Bank vice governor Guy Debelle received $575,418, while former Coca-Cola Amatil chief executive Alison Watkins, appointed to the RBA board for a five-year term in December 2020, received $85,382 to attend 11 board meetings and an additional $12,342 to serve on the Reserve Bank’s audit committee.

Former Coca-Cola Amatil CEO Alison Watkins, appointed to the RBA board for a five-year term in December 2020, was paid $85,382 to attend 11 board meetings and an additional $12,342 to serve on the audit committee of the Reserve Bank

Reappointed board member Mark Barnaba, the former vice chairman of Fortescue Metals Group, was paid $81,533 to attend 11 board meetings as well, plus an additional $23,561 to chair the RBA’s audit committee.

His five-year term was set to expire in August, but Dr. Chalmers extended it for another year in July.

Carolyn Hewson, the ex-wife of former Liberal leader John Hewson and a director of CSL, was paid $85,382 to attend 11 board meetings.

The new Labor government launched a review of the Reserve Bank’s monetary policy-making operations in July.

dr. Lowe in the report welcomed the assessment.

“Reserve Bank staff has continued to work tirelessly over the past year in the public interest as they have dealt with the disruption caused by the pandemic,” he said.

“Once again the Board joins in thanking the Bank’s staff for their dedication and contribution to the well-being of the Australian people.”