The newest member of the Reserve Bank board, Ian Harper, is returning to the institution where he began his working career three decades ago.

The man who headed the Abbott government's competition review, the Howard government's Fair Pay Commission and sat on the Wallis Inquiry into the financial system will take up a five-year term on the board from July 31, controversially replacing Dr John Edwards who Labor treasury spokesman Chris Bowen said would have been a "suitable candidate for a second term".