Australia’s central bank may be reforming many of its ways, inspired largely by the report of the 2023 Review, but cost discipline isn’t one of them.

Staff costs at the Reserve Bank of Australia ballooned by 12 per cent to $335 million over the year to June 2024, while general operating costs (excluding depreciation) leapt 26 per cent to $555 million, the RBA’s 2024 annual report shows.

By function, costs increased modestly to support policy work and business services (including its banking business).

Costs allocated to executive and corporate support rocketed by one third last year, to $407 million, only a portion of which can be pinned on the relocation from 65 Martin Place to the bank’s temporary headquarters at Chifley Square.

‘Project costs’, which at $157 million were equal to 28 per cent of total costs, soared from $66 million in FY2023.

‘Our capital expenditure reflects our program of investment to maintain the value of our property portfolio and technology assets, and supporting the delivery of new capabilities and services” the annual report explains. 

“In 2023/24, this investment was focused on the renovation of 65 Martin Place, modernising our core technology infrastructure and migrating one of our two in-house primary data centres to a co-location centre. Despite this, capital expenditure was lower in 2023/24. 

“This was due in part to delays with the 65 Martin Place renovation following the identification of extensive hazardous materials.”

Capital expenditure is expected to increase in 2024/25 as the investments mentioned above progress.

The ‘upgrade’ – a euphemism – of the bank’s head office at Martin Place is beset by difficulties and delays.

It is expected to be completed by 2030, the RBA says.

In June 2024, the RBA (excluding Note Printing Australia) had 1774 employees. With almost 7 per cent of employees working part time, its workforce comprised 1735 full-time equivalent employees.

Staff turnover looks high at around 25 per cent. The RBA hired 409 employees during the year.