Federal Treasurer Jim Chalmers has thrown his support behind calls for the Reserve Bank (RBA) board to be more representative of the broader Australian community, following scathing criticism that it is out of touch with workers demanding wage increases.

During the week, ACTU Secretary Sally McManus took aim at RBA governor Philip Lowe, accusing him of indulging in a "boomer fantasy" in warning that wage growth beyond 3.5 per cent would further fuel inflation across the country.

Ms McManus's assessment extended to the RBA board, when she argued there were no members with experience "in negotiations for wages, or the wage setting system from the workers' side."

"Now, that's a pretty big problem if you're making assumptions or trying to understand, trying to analyse how things work," she told the ABC on Thursday.

Mr Chalmers has already committed to a review of the RBA, and said the terms of reference were still being finalised.

"There has been, I think, a welcome conversation about whether or not the Reserve Bank board is broad enough, representative enough, whether it's the right size," he told the ABC's Insiders.

"When I announce the terms of reference for the Reserve Bank review, I think one of the key considerations should be board representation — whether it's broad enough, in geographic terms and gender and all the important considerations, but to also make sure that the right voices are represented around the table."

As Australians continue to grapple with the cost of living crisis, the Treasurer said he would provide an update on inflation forecasts when Parliament meets in late July, for the first time since the federal election.

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"Inflation will be significantly higher than what was expected in the last government's most recent budget, what was expected at election time as well — certainly higher than the 5.1 per cent we saw in the March quarter," he said.

"This inflation problem will get more difficult before it starts to ease.

"The Reserve Bank said something around 7 per cent [by the end of the year], that doesn't seem to me to be wildly off the mark."

Dutton's push for pensioners

New Opposition Leader Peter Dutton is urging the government to allow older Australians to earn more money without their pensions being cut back, in a bid to tackle workforce shortages across the country.

Currently, pensioners can earn $300 a fortnight before their payments are cut back.

Mr Dutton said that should be increased to $600, to encourage pensioners to pick up casual work in areas such as retail and hospitality.

"And this allows them to do that work, to get a bit of extra money.

"It might mean that they're grey nomads travelling around, and they want to work in a regional town, and it's going to make a big difference to those businesses," he said.

Treasurer Jim Chalmers questioned why the Coalition had not implemented such a policy before the election if it thought it was such as a good idea.

He argued it was a matter deserving consideration, but may be difficult to achieve given budget constraints.

"When it comes to this issue, I've had good productive conversations with National Seniors and others about whether or not we could do something here," he said.

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