Two new members have been selected to sit on the Reserve Bank board, bringing industrial and business experience.
The appointment of Iain Ross and Elana Ruben follows the release of a wide-ranging review of the economic institution that recommended setting up a separate board solely responsible for setting interest rates.
The new recruits will replace outgoing members Wendy Craik and Mark Barnaba who are not seeking reappointment.
Dr Ross retired last November after 11 years as president of the Fair Work Commission.
He was also a judge of the Federal Court of Australia and a Victorian Supreme Court judge.
Earlier in his career, he was assistant secretary of the Australian Council of Trade Unions.
Ms Rubin has more than two decades of experience as a non-executive company director across diverse sectors and has also worked for the ACTU.
"Iain Ross and Elana Rubin are highly capable people and I have absolutely no doubt that they will make important and excellent contributions to the Reserve Bank board going forward," Treasurer Jim Chalmers said on Thursday.
ACTU secretary Sally McManus said there was a need for a greater diversity of viewpoints on the board and labour market expertise, in particular.
"The board needs members such as former Fair Work Commission president Iain Ross who understand real-world wage setting systems and the relationship between wages, unemployment and inflation," she said.
Australian Council of Social Service chief Cassandra Goldie said the appointments were welcome and necessary, but other expertise was also needed on the board.
"The diversity must include representation of the interests of people who are the most disadvantaged, outside the labour market and struggling the most to deal with inflation and unemployment," she said.
"We also need to see community and human services sector perspectives reflected, recognising that our sector is likely to be one of the major areas of growth in employment and the economy."
Shadow treasurer Angus Taylor said the report included good work on improving the "intellectual diversity" of the board.
"We think that the appointments, and reappointments for that matter, should follow the recommendations laid out in the review," Mr Taylor said.
"They should be merit-based and we want the process followed."
A two-tier board structure was one of several recommendations aimed at strengthening the board's governance structure and improving the transparency of monetary policy decisions.
Mr Taylor said the two boards would require people with different skill sets.
"We need the very best people to make tough monetary policy decisions around the table, and - on the governance board - the people with the appropriate board experience and capability."
