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The Australian dollar has been the country's currency since 1966, when it replaced the pound. At that time, coins were introduced in denominations of 1 and 2 cents, 5, 10, and 20 cents, and 50 cents. So, it's simple – 100 Australian cents make up 1 Australian dollar!
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What You'll Learn
100 cents make 1 Australian dollar
The Australian dollar is made up of 100 cents. In 1966, coins were introduced in denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel; 75% copper, 25% nickel); and 50 cents (silver, then cupronickel). The 50-cent coins in 80% silver were no longer minted after March 1968 due to the intrinsic value of the silver content rising to exceed the face value of the coins. Commemorative 50-cent coins were first issued in 1970, commemorating James Cook's exploration of the east coast of Australia. Since then, other commemorative designs have been featured on the circulating two-dollar, one-dollar, and 20-cent coins.
In 1984, aluminium bronze (92% copper, 6% aluminium, 2% nickel) 1-dollar coins were introduced, followed by aluminium bronze 2-dollar coins in 1988, replacing the banknotes of that value. These coins are commonly referred to as "gold coins" in everyday Australian parlance. The 1 and 2-cent coins were discontinued in 1991 and withdrawn from circulation in 1992. Since then, cash transactions have been rounded to the nearest 5 cents.
The Royal Australian Mint, located in Canberra, is responsible for producing Australia's coins. The Mint has an international reputation for producing quality numismatic coins. In early 2013, Australia introduced its first triangular coin to commemorate the 25th anniversary of the opening of Parliament House.
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Coins below 5 cents discontinued
In Australia, 100 cents make up 1 dollar. Coins of denominations less than 5 cents, such as 1 and 2 cent coins, were discontinued in 1991 and withdrawn from circulation in 1992. This was likely due to reasons such as the high cost of production, low purchasing power, and low utility. Since then, cash transactions in Australia have been rounded to the nearest 5 cents.
The withdrawal of low-denomination coins can be done by either removing the coins from circulation or ceasing to mint them. In the case of Australian 1 and 2 cent coins, they were likely withdrawn due to a combination of factors, including the cost of production exceeding the value of the coins, as well as their low purchasing power after years of inflation.
Other countries have also discontinued their lowest-denomination coins. For example, Canada phased out its 1-cent coin in 2012, as the production cost had reached 1.6 cents per penny. Switzerland stopped producing its 1 Rappen coin in 2006, even though it had fallen into disuse decades earlier.
There are ongoing discussions in Canada about potentially withdrawing the 5-cent coin due to declining interest from the public. A 2016 study suggested that within five years, Canada should transition to a mix of 10-, 20-, and 50-cent coins. While some Canadians support this idea, others oppose it, especially women, who make up only 33% of supporters, compared to 47% of men.
In Singapore, there is a similar sentiment towards 5-cent coins, with some people expressing annoyance at receiving them as change and preferring to waive a 10-cent charge rather than accept a 5-cent coin. However, others argue that 5-cent coins are still useful for cash transactions and that discontinuing them would lead to price increases for certain goods and services.
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Cash transactions rounded to nearest 5 cents
Australia's currency system involves dollars and cents, with 100 cents making up 1 dollar. In 1966, coins were introduced in denominations of 1 and 2 cents, 5, 10, and 20 cents, and 50 cents. However, the 1 and 2 cent coins were discontinued in 1991 and withdrawn from circulation in 1992. As a result of this, cash transactions in Australia are now rounded to the nearest 5 cents.
This rounding system is also known as "Swedish rounding" or "penny rounding" in other parts of the world. It involves rounding down to the nearest multiple of 5 cents for sales ending in 1 cent, 2 cents, 6 cents, or 7 cents. For instance, a price ending in 1 or 2 cents is rounded down to 0 cents, while a price ending in 6 or 7 cents is rounded down to 5 cents. On the other hand, prices are rounded up to the nearest multiple of 5 cents for sales ending in 3 cents, 4 cents, 8 cents, or 9 cents. So, a price ending in 3 or 4 cents is rounded up to 5 cents, and a price ending in 8 or 9 cents is rounded up to 10 cents. Values ending in 0 cents or 5 cents remain unchanged.
This rounding system is currently used in several other countries, including New Zealand and Hong Kong. In New Zealand, they eliminated their 5-cent coin in 2006, and in Hong Kong, the 5-cent coin was eliminated in 1989. Additionally, in Canada, cash rounding to the nearest 5 cents was introduced in 2013 when they eliminated the penny.
It is important to note that rounding is typically applied to the total bill and not to individual items on the bill. This rounding process is only necessary for cash sales, as electronic transactions can still process payments like $9.99 without needing to round up to $10.00.
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Coins made of bronze, cupronickel, silver
Australian coins are made from a variety of metals, including bronze, cupronickel, and silver. In 1966, when the Australian dollar was introduced, coins were issued in denominations of 1 and 2 cents, made of bronze (an alloy of 97% copper, 2.5% zinc, and 0.5% nickel or tin); 5, 10, and 20 cents, made of cupronickel (an alloy of 75% copper and 25% nickel, sometimes referred to as Copper/Nickel or CuNi); and 50 cents, originally made of silver (an alloy of 80% silver and 20% copper), but later changed to cupronickel. The 50-cent silver coins were discontinued in March 1968 due to the intrinsic value of the silver content exceeding the face value of the coins.
The Royal Australian Mint (RAM) and the Perth Mint release a large number of coins for collectors each year, and these coins are technically legal tender but not intended for everyday use. These collector coins have been made from a range of metals, including platinum, gold, silver, copper nickel, aluminium bronze, bronze, and copper. Commemorative coins with designs commemorating special events have also been produced for various denominations, replacing the usual design on the reverse side of the coin.
In 1984, aluminium bronze (an alloy of 92% copper and 8% aluminium, also known as AlBr) 1-dollar coins were introduced, followed by aluminium bronze 2-dollar coins in 1988, replacing the banknotes of those values. These coins are referred to as "gold coins" in everyday Australian parlance. The 1 and 2 cent coins were discontinued in 1991 and withdrawn from circulation in 1992, with cash transactions now being rounded to the nearest 5 cents.
Today, circulating Australian coins are made from two different metal alloys. The 5, 10, 20, and 50 cent coins are silvery grey in colour and made from cupronickel (75% copper and 25% nickel). The 1 and 2 dollar coins are pale gold in colour and made from aluminium bronze (92% copper and 8% aluminium).
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Royal Australian Mint produces the coins
One hundred Australian cents make up 1 Australian dollar. Coins in Australia are produced by the Royal Australian Mint, which is located in the country's capital, Canberra. It is the national mint of Australia and the primary production facility for the country's circulating coins. It is a Commonwealth Government entity operating within the portfolio of the Treasury.
The Royal Australian Mint was opened in 1965 by the Duke of Edinburgh, coinciding with the introduction of the Australian decimal currency in 1966. It was designed by the Chief Designing Architect in the Commonwealth Department of Works, Richard Ure, in the International style. The mint project cost £4.5 million. The first tasks of the Royal Australian Mint were to produce distinctively Australian coins and facilitate a smooth transition from British imperial pounds, shillings, and pence to Australia's own decimal dollars and cents.
The Royal Australian Mint is also responsible for creating bi-metallic and colour-printed coins. It has an international reputation for producing quality numismatic coins. The mint has issued commemorative 50-cent coins, such as for James Cook's exploration of the Australian continent's east coast and the Australian Bicentenary in 1988. Commemorative designs have also been featured on circulating one-dollar coins. The mint has produced over 15 billion coins and can produce up to 2 million coins per day.
In addition to Australian coins, the Royal Australian Mint also produces medals, medallions, and tokens for domestic and international clients. It has struck coins for several Asian and South Pacific nations, including New Zealand, Papua New Guinea, Tonga, and Fiji. The mint also plays a role in educating local and international visitors on the history of Australian coinage and the contemporary coin production process.
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Frequently asked questions
100 cents make up 1 Australian dollar.
The composition of Australian cents depends on their denomination. 1 and 2-cent coins are made of bronze, 5, 10, and 20-cent coins are made of cupronickel (75% copper and 25% nickel), and 50-cent coins were originally made of silver but were later also made of cupronickel.
Yes, the 1 and 2-cent coins were discontinued in 1991 and withdrawn from circulation in 1992. Since then, cash transactions have been rounded to the nearest 5 cents.
