Reserve Bank of Australia Governor Michele Bullock secures $100,000 pay rise, annual report shows

Reserve Bank of Australia boss Michele Bullock — who has warned that average Australians may be forced to sell their homes for the greater good — will be paid $100,000 more than her predecessor.

Ms Bullock’s base salary of $1.081 million was $107,000 more than her predecessor, Philip Lowe, was paid in the 2023-2024 financial year, according to fresh filings by the central bank.

This makes the RBA governor’s pay rise alone just above the average Australian wage — of $103,700, according to official ABS data.

It comes amid a cost of living crisis, in which the RBA has kept interest rates at a punishing 4.35 per cent in an effort to tame inflation.

Ms Bullock, who will receive $14,142 in other benefits and allowances — such as car and health perks— warned last month that, despite sluggish economic growth of 0.2 per cent in the June quarter, the bank was not ruling out yet another rate rise.

“If inflation doesn’t come down, then it might be that the best medicine is, in fact, that we have to end up putting more restriction into the economy,” the Governor said.

And she made the dire warning that those who fell behind on mortgage payments could be forced to sell their homes.

“Some may ultimately make the difficult decision to sell their homes,” she said.

The details of Ms Bullock’s salary — and those of other Reserve Bank executives — were made public in the central bank’s annual report, released on Friday.

The RBA has imposed 13 rate hikes since May 2022.

Those changes occurred under Dr Lowe, with career central banker Ms Bullock — appointed to the top job in September last year after 15 months as deputy governor — keeping the cash rate unchanged.

Ms Bullock defended the bank’s tough love approach, saying the alternative was higher inflation for longer.

“We know the (high interest rates) that are necessary to bring inflation down are causing hardship to some households and businesses,” she said.

“We are very conscious of that . . . but inflation causes hardship, too. If we don’t get inflation down, it’s bad for everyone, absolutely everyone.”

Deputy governor Andrew Hauser was appointed in February and received a base salary of $336,204 for his first few months in the role to the end of June.

Ms Bullock was paid $701,739 in 2022-2023 as deputy.

Pay and conditions for the governor and RBA board members are determined by the independent Remuneration Committee.

The Reserve Bank was contacted for comment.

Inflation data on Wednesday could prove decisive on the RBA’s next move.

Treasurer Jim Chalmers has warned those figures could be higher than hoped due to the impact of conflict in the Middle East on global oil supplies.

“We expect in the inflation figures next week that we will see some of the first parts of that elevated global oil prices reflected,” Dr Chalmers said last week.