Additionally, the government plans to introduce a 'right-to-repair' rule to address consumer complaints regarding the stifling effects of multinational firms' intellectual property rights.

In an effort to ensure high-caliber candidates for the new Reserve Bank boards, Chalmers intends to consult the Coalition on appointments.

The report also highlights that 'golden handcuffs' imposed by employers could be costing the economy up to $5.1 billion, suggesting that increased labor mobility could provide significant economic benefits.

Some Reserve Bank reforms have already been initiated, including changes to meeting frequency and communication strategies implemented by Governor Michele Bullock, following an independent review.

Furthermore, the Commission found that simplifying occupational licenses across states could generate an additional economic boost ranging from $5.1 billion to $10.3 billion.

Federal Treasurer Jim Chalmers has unveiled a significant overhaul of the Reserve Bank and economic reforms, aiming to reduce interest rates by half a percentage point and enhance household finances by as much as $5,000 annually.

The proposed reforms are expected to benefit every household by approximately $750 a year through increased competition, which could also help alleviate the ongoing housing crisis in Australia.

Chalmers noted that improved competition in the banking sector, especially for mortgages and small business loans, could lead to a reduction in interest rates by up to 0.5 percentage points, potentially saving homeowners around $200 monthly on a $600,000 mortgage.

According to the Productivity Commission, these reforms could yield economic gains between $26 billion and $45 billion, translating to annual benefits of $3,000 to $5,000 per household while also reducing inflation by 0.7 to 1.5 percent.

Chalmers emphasized that these reforms are part of a long-term competition policy designed to deliver lasting benefits to consumers and businesses over the next decade.

However, a key reform to establish a committee dedicated solely to interest rate decisions has faced delays, having been stalled in the Senate for six months due to opposition from the Coalition party.

Shadow Treasurer Angus Taylor has criticized the government's reliance on the Greens for support on RBA reforms, warning that it could lead to the adoption of 'radical' economic policies after the upcoming election.