Treasurer Jim Chalmers may be forced to secure the support of the Greens to legislate his planned overhaul of the RBA, after rejecting the Coalition’s demand that all existing board members be appointed to the new interest-rate setting board.

The independent RBA review’s signature recommendation was the creation of separate boards for interest rate setting and governance. While the Coalition supports the recommendation in principle, the major parties are at loggerheads over which board the six current external RBA board members should serve on.