Leslie Massey
Australia changed its currency from the Australian pound to the Australian dollar in 1966. The decision to switch from the imperial system of pounds, shillings and pence to a decimal currency was made in 1963, following a long period of contemplation since the beginning of the 20th century. The introduction of decimal currency simplified calculations and increased financial efficiency, but it also represented a significant change for the nation. The new currency was designed and produced by the Reserve Bank of Australia, with the first decimal series capturing the emerging diversity of Australia.
| Characteristics | Values |
|---|---|
| Year of change | 1966 |
| Date of change | 14 February |
| Name of the day of change | C-Day or Changeover Day |
| Previous currency | Pounds, shillings and pence |
| New currency | Decimal currency |
| Names of new units | Dollar (major unit) and cent (minor unit) |
| Value of one dollar in old currency | Ten shillings |
| Value of one cent in old currency | One hundredth of a dollar, or 1.2 pence |
| Name of the bank that oversaw the change | Reserve Bank of Australia |
| Name of the committee that recommended the change | Decimal Currency Committee |
| Politician who promised to consider decimalisation | Robert Menzies |
| Year of the promise | 1958 |
| Act that set the change | Currency Act 1963 |
| Transition period | Two years |
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What You'll Learn
The Australian government considered changing currency in the 1950s
In the 1950s, the Australian government considered changing the country's currency. At the time, Australia used the imperial system of pounds, shillings, and pence, which was based on the number 12. The idea of switching to a decimal currency had been contemplated since the beginning of the 20th century as it simplified calculations and increased financial efficiency. However, it also represented a radical change to the customary daily transactions of the nation.
In 1958, Robert Menzies, a staunch monarchist, made an election promise to seriously consider decimalisation. The argument for switching was that the imperial system was awkward and unwieldy. Under this system, one Australian pound was divided into 20 shillings, with each shilling comprising 12 pence. Menzies believed that the new currency should be named the 'royal', maintaining a symbolic kinship with Britain.
The Decimal Currency Committee, which included Economic Advisor Sir Leslie Melville and Commission Secretary John 'Jock' Phillips, provided recommendations for the introduction of decimal currency. In 1963, the Australian government announced that it would introduce a decimal currency in 1966, with the major unit to be named the 'dollar' and the minor unit to be named the 'cent'. The Reserve Bank of Australia oversaw the design and production of the new decimal banknotes for the $1, $2, $10, and $20 denominations.
The transition to the new currency was carefully planned, with a large-scale public awareness campaign featuring the cartoon character Dollar Bill, who educated Australians about the decimal system. A stockpile of one billion coins was minted and distributed across Australia, and bank machinery, parking meters, cash registers, and petrol pumps were converted. The new currency was successfully introduced on 14 February 1966, known as 'C-Day' or 'Conversion Day', with a two-year transition period during which both the old and new currencies could be used.
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The new currency was introduced in 1966
Australia's new currency, the Australian dollar, was introduced on 14 February 1966, a date that became known as 'C-Day' or 'Conversion Day'. The new currency replaced the old system of pounds, shillings, and pence with a decimal currency system. The idea of a decimal currency had been contemplated since the beginning of the 20th century, as it simplified calculations and increased financial efficiency.
In 1958, Robert Menzies made an election promise to seriously consider decimalisation. The argument for switching was that the imperial system, with one Australian pound divided into 20 shillings, each containing 12 pence, was awkward and unwieldy. The new decimal system would be based on the number 10, with the major currency unit, named the dollar, equal to ten shillings, and the minor currency unit, the cent, equal to one hundredth of the dollar.
In 1963, the Australian government announced its plan to introduce the new currency in 1966, and the design process for the new banknotes began. During 1965, the Reserve Bank of Australia's Note Printing Branch produced almost 153 million new decimal currency banknotes. An extensive public awareness campaign, featuring the cartoon character Dollar Bill, was also launched to familiarise Australians with the new currency.
The introduction of the new currency on 14 February 1966 was a success, with the Sydney Morning Herald reporting on the smoothness of the changeover and the good humour of the public. A two-year transition period followed, during which both the old and new currencies could be used, and any change received would be in dollars and cents.
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The new currency was called the dollar
Australia has changed its currency more than once in its history. One notable change was the transition from the Australian pound to the Australian dollar, which took place in the 1960s. This shift to decimal currency had been contemplated since the beginning of the 20th century, as the imperial system of pounds, shillings, and pence was considered awkward and unwieldy. The idea of decimal currency, based on the number 10, would simplify calculations and increase financial efficiency.
In 1958, Robert Menzies, a staunch monarchist and supporter of maintaining symbolic kinship with Britain, made an election promise to seriously consider decimalization. This led to the formation of the Decimal Currency Committee, which guided the Australian Government in its practical considerations for the new currency. The committee recommended that the major currency unit be named the "dollar" and be equal to ten shillings, while the minor currency unit, named the "cent," would be one-hundredth of the major unit, equal to 1.2 pence.
The Currency Act of 1963 officially set 'C-Day' (Conversion Day) for February 14, 1966, marking the introduction of the new decimal currency. A two-year transition period followed, during which both pounds and dollars could be used. To prepare for this significant change, the Reserve Bank of Australia oversaw the design and production of new decimal banknotes in denominations of $1, $2, $10, and $20. The bank also ensured the distribution of the new coins and banknotes to 5,000 bank branches across Australia.
The public was educated about the new currency through campaigns like the cartoon character Dollar Bill, who starred in a jingle based on 'Click go the shears'. This campaign was well-received, and there was a general air of optimism and positivity surrounding the change. On C-Day, the smoothness of the transition delighted officials, and the new currency was considered a success. This marked a pivotal moment in Australia's monetary history, as the nation embraced the dollar as its new currency unit.
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The Reserve Bank of Australia oversaw the design and production of new banknotes
Australia has changed its currency multiple times in the past. One notable change occurred on Monday, 14 February 1966, known as "C-Day" (Conversion Day). On this day, Australia introduced a decimal currency system, replacing the previous Australian pound with the Australian dollar.
The Reserve Bank of Australia played a crucial role in this transition by overseeing the design and production of new decimal banknotes. The process began in April 1964 when the concept designs by Gordon Andrews were accepted, and detailed design work commenced. The Bank's Note Printing Branch was responsible for producing almost 153 million new decimal currency banknotes during 1965.
The new banknotes featured denominations of $1, $2, $10, and $20. They were designed to enhance Australia's distinctive identity and featured bold and bright colours, a variety of security features, and depictions of the country's unique fauna. Dr H. C. Coombs, the Governor of the Reserve Bank of Australia, described the new banknotes as having "lighter and brighter colours" that were attractive and appropriate for the Australian environment.
The production techniques used for these new banknotes were significantly different from the old system. One notable difference was the printing process used for the background, which had never been used before by the Reserve Bank. This process involved a series of precise overprintings, resulting in a complex and detailed background that was challenging to imitate, thus enhancing the security of the banknotes.
The Reserve Bank of Australia has continued to play an active role in maintaining public confidence in the security of Australia's banknotes. They have regularly upgraded the security features and designs of the banknotes to combat the increasing threat of counterfeiting due to advancements in graphic reproduction technology. One such initiative was the establishment of the Next Generation Banknote program in 2007, which aimed to enhance the security features of Australia's banknotes further.
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An educational campaign familiarised the public with the new currency
On 14 February 1966, Australia transitioned from the Australian pound to a decimal currency, the Australian dollar. This shift presented an opportunity for the nation to forge a new currency that reflected its self-image. A public competition was held to choose a name for the new currency, generating suggestions such as 'Austral', 'Roo', 'Koala', and 'Digger'. Ultimately, the name 'dollar' was chosen, with the currency being subdivided into 100 cents.
The transition to the new currency was overseen by the Decimal Currency Board, led by Sir Walter Scott. Scott's regular television appearances provided reassurance to the public about the technical aspects of the change. The board's publicity campaign also featured Dollar Bill, a cartoon character who appeared in various media formats, including a TV advertisement and newspaper comic strips. Dollar Bill helped to familiarise Australians with the new currency and played a crucial role in the two years leading up to the introduction of the Australian dollar.
The public had ample time to adjust to the concept of decimalisation, and any concerns or potential challenges were addressed proactively. The new currency's design reflected Australian culture and included themes such as Aboriginal culture, women, the environment, architecture, and aeronautics. The introduction of the Australian dollar was a significant logistical achievement, requiring the training of finance sector staff and the conversion of cash registers and petrol pumps.
The Australian dollar was introduced at a conversion rate of two dollars to the pound, making it much easier for calculations compared to the previous system of shillings and pence. The new currency also had a similar colour scheme to the notes they replaced, providing a sense of familiarity. The $1, $2, $10, and $20 denominations had exact exchange rates with pounds, while the $5 note, worth £2 10s, was introduced later in May 1967, once the public had become more comfortable with the decimal system.
The Australian dollar became the official currency and legal tender in Australia and its external territories, including Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It also serves as the official currency in three independent Pacific Island states: Kiribati, Nauru, and Tuvalu. The successful introduction of the Australian dollar is considered one of the most seamless and well-executed government reforms in the country's history.
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Frequently asked questions
Yes, Australia switched from the imperial system of pounds, shillings and pence to decimal currency in 1966.
The idea of a decimal currency had been considered since the beginning of the 20th century. It simplified calculations and increased financial efficiency.
Australia changed its currency on 14 February 1966, also known as 'C-Day' or 'Changeover Day'.
The process of changing the currency in Australia involved minting and distributing a stockpile of one billion coins, converting bank machinery, parking meters, cash registers and petrol pumps, and conducting a large-scale public awareness campaign.
