Damon Mcknight
The Australian dollar is the official currency of Australia, and it is also legal tender in its external territories, such as Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. The dollar was introduced as a decimal currency in 1966, replacing the Australian pound. Australian money comes in both coins and notes, with the Royal Australian Mint producing the coins and the Reserve Bank of Australia printing the notes.
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What You'll Learn
- The Australian dollar was introduced in 1966
- Australian coins are produced by the Royal Australian Mint
- Australian notes are printed by the Reserve Bank of Australia
- Australia was the first country to print notes on polymer plastic
- The Australian dollar is also the official currency in Kiribati, Nauru, and Tuvalu
The Australian dollar was introduced in 1966
The Australian dollar was introduced on the 14th of February 1966, replacing the non-decimal Australian pound. The conversion rate was set at two dollars to the pound (A£1 = A$2).
The introduction of the Australian dollar, also known as the dollar or Aussie dollar, was a significant moment in the country's monetary history. It marked Australia's transition to a decimal currency system, which had been proposed by the Decimal Currency Committee in 1960. The new currency was modelled on South Africa's replacement of the South African pound with the rand.
The Australian dollar was introduced in denominations of $1, $2, $10, and $20 notes, with the $5 note following in 1967. The $1 and $2 banknotes were later replaced by coins in 1984 and 1988, respectively. In 1966, coins were introduced in denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel); and 50 cents (silver, later cupronickel).
The introduction of the Australian dollar was accompanied by a public education campaign featuring the character "Dollar Bill," who appeared in television advertisements, brochures, and leaflets explaining the new decimal currency system. The transition period lasted around 18 months, during which pounds, shillings, and pence were in dual circulation with the new decimal currency.
The Australian dollar is now the official currency and legal tender of Australia, including its external territories, and it is also used in three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu.
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Australian coins are produced by the Royal Australian Mint
Australia's currency is the Australian dollar, which is subdivided into 100 cents. Australian coins are produced by the Royal Australian Mint, which is located in the nation's capital, Canberra. The Royal Australian Mint 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 Mint is also the custodian of the National Coin Collection and plays a role in preserving Australian history by recognising significant events and organisations through coins.
The Royal Australian Mint opened in 1965, with the first tasks of producing distinctively Australian coinage and facilitating the changeover from British imperial pounds, shillings, and pence to Australia's own decimal dollars and cents. Australia's decimal coins were introduced in 1966, with denominations of 1 and 2 cents (bronze); 5, 10, and 20 cents (cupronickel); and 50 cents (silver, later cupronickel). The 50-cent coins in 80% silver were discontinued in March 1968 due to the rising value of silver.
Most coins produced by the Royal Australian Mint are basic circulating coins under the decimal denomination. Their resale value usually does not exceed their face value. The Mint's coin values are determined by factors such as weight, metal purity, rarity, condition, and labour and distribution costs. The Mint does not produce bullion coins as it does not refine silver or gold. However, it creates bi-metallic and colour-printed coins and is known for its top-tier numismatic commemorative coins.
The Royal Australian Mint has produced over 14 billion circulating coins since its opening, with a capacity of more than two million coins per day. It also manufactures collector coins, medals, medallions, and tokens for domestic and international clients. The Mint is a major tourism attraction in Canberra, educating visitors on the history of Australian coinage and modern coin production.
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Australian notes are printed by the Reserve Bank of Australia
The Australian dollar is the official currency of Australia, and it is also the legal tender in its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It is subdivided into 100 cents. Australian notes are printed by the Reserve Bank of Australia.
The Reserve Bank of Australia owns a subsidiary called Note Printing Australia Limited (NPA), which is based in Craigieburn, Melbourne. NPA produces currency notes for Australia and also exports them to other countries. It was corporatized in July 1998 and has been in operation since 1913, initially as a subsidiary of the Commonwealth Bank.
NPA was the first printer in the world to issue a complete circulating currency note series on polymer substrate. It has printed more than 10 billion banknotes for 19 countries in more than 80 denominations. In 2005-06, NPA produced 220 million notes for the Reserve Bank and 161 million export notes.
The polymer substrate used by NPA is supplied by Securency Pty Ltd, a joint venture between the Reserve Bank and Innovia Films, a global supplier of polypropylene films. Securency applies unique coatings and security features to the specialized films supplied by Innovia, creating three types of substrates: Guardian®, Sentinel®, and Sentrii®.
In addition to currency notes, NPA also produces passports and other security products, such as academic transcripts for universities and secure cards.
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Australia was the first country to print notes on polymer plastic
The Australian dollar is the legal tender of Australia. It was introduced as a decimal currency on 14 February 1966, replacing the non-decimal Australian pound. Australia's coins are produced by the Royal Australian Mint, which is located in the nation's capital, Canberra.
The development and introduction of polymer banknotes in Australia was a collaborative effort involving the Reserve Bank of Australia (RBA), the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and The University of Melbourne. The idea of using polymer for banknotes was the result of years of research, culminating in the early 1980s with the development of a polymer substrate suitable for banknote use. The 1988 commemorative polymer banknotes featured advanced security features, including optically variable devices, intaglio and offset printing, and watermarks.
The benefits of polymer banknotes are significant. They offer enhanced security features not available in paper banknotes, such as the use of metameric inks and other security devices. Polymer notes also last significantly longer than paper notes, reducing environmental impact and lowering production and replacement costs. The durability of polymer banknotes also makes them less susceptible to counterfeiting. Additionally, during the COVID-19 pandemic, the use of polymer banknotes gained further attention as they can be sanitized with less damage compared to paper notes.
Following Australia's lead, several other countries have since adopted polymer banknotes. As of 2009, Securency International Pty Ltd was exporting polymer notes to 25 countries, with over three billion polymer notes in circulation. Some of the countries that have fully transitioned to polymer banknotes include New Zealand, Romania, Vietnam, Brunei, Nigeria, Papua New Guinea, Canada, and the Maldives.
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The Australian dollar is also the official currency in Kiribati, Nauru, and Tuvalu
The Australian dollar is the official currency of Australia and its external territories: Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. Interestingly, it is also the official currency of three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu.
Nauru, officially the Republic of Nauru, is a small island country and microstate in the South Pacific Ocean. It is one of the most densely populated Westernized countries in the South Pacific, with around 10,800 to 12,511 residents. English is widely spoken and is the language of government and commerce. Nauru has never had its own currency and has used the Australian dollar as legal tender since 1966.
Kiribati, a neighbouring country to Nauru, also uses the Australian dollar as its official currency. Kiribati previously had its own currency, the Kiribati dollar, which was at par with the Australian dollar. However, Kiribati no longer produces its own coinage and has adopted the Australian dollar as the dominant currency.
Tuvalu, another Pacific Island state, follows a similar story. The Tuvaluan dollar was once used, but the country now relies primarily on the Australian dollar. Like Kiribati and Nauru, Tuvalu's official currency is the Australian dollar.
The Australian dollar was introduced as a decimal currency on 14 February 1966, replacing the non-decimal Australian pound. It is subdivided into 100 cents, and the $ symbol precedes the amount. Australian notes and coins are legal tender in Australia and its external territories, as well as in Kiribati, Nauru, and Tuvalu.
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Frequently asked questions
The Australian dollar is the legal tender in Australia. It is subdivided into 100 cents.
Australian money comes in both coins and notes. Each Australian coin has two sides: one side features a picture of Queen Elizabeth II or King Charles III, along with the year it was made, and the other side features a special Australian design indicating the amount. Each coin is a different size, so they can be told apart by touch. Australian notes are made from polymer plastic, which is stronger, harder to copy, and longer-lasting than paper notes.
Australian coins are produced by the Royal Australian Mint in Canberra, and notes are printed by the Reserve Bank of Australia.
