Lyla Lindsey
Australia's first official currency was the Australian pound, introduced in 1910. Before this, the six colonies that comprised Australia had separate currencies, which closely replicated the British currency system. In 1966, Australia introduced its first decimal series of banknotes, and in 1984, the $1 banknote was replaced by a $1 coin. Australia was the first country to introduce polymer banknotes in 1988, which are made of polypropylene polymer and produced by Note Printing Australia. Today, the Australian dollar is the official currency and legal tender of Australia, including all of its external territories, and three independent sovereign Pacific Island states: Kiribati, Nauru, and Tuvalu.
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What You'll Learn
The first Australian banknote was printed in 1913
The history of Australian currency dates back to the early 19th century, when it was fixed to the British pound. However, it wasn't until 1913 that the first Australian banknote was printed. This marked a significant milestone in the country's monetary history.
Following the passing of the Australian Notes Act in 1910, which assigned responsibility for issuing banknotes to the Commonwealth Treasury, Australia began the process of creating its own federal government-issued banknotes. The first step was to discourage private banks from issuing their own banknotes, which was achieved through the Bank Notes Tax Act of 1910, which imposed a 10% tax on all banknotes issued by any bank in the Commonwealth.
In 1911, as a transitional measure, the government received blank note forms from 16 banks, which were overprinted as redeemable in gold and circulated as the first Commonwealth notes. Thomas Samuel Harrison, an Englishman with expertise in security printing, was appointed as Australia's first banknote printer in 1912. He worked to acquire machinery and set up production facilities, and on 1 May 1913, the first Australian banknote, a ten-shilling denomination, was ready for numbering.
The introduction of this first banknote laid the foundation for Australia's subsequent series of banknotes. Over the years, Australia has continued to innovate its currency, transitioning from non-decimal to decimal currency and adopting polymer technology. The first polymer series of Australian banknotes was issued between 1992 and 1996, making Australia the first country to introduce polymer banknotes.
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The Australian pound was introduced in 1910
The Australian Notes Act of 1910, which assigned responsibility for the issue of banknotes to the Commonwealth Treasury, made it an offence for any bank to circulate banknotes issued by a state and withdrew their status as legal tender. The Bank Notes Tax Act, also of 1910, imposed a tax of 10% per annum on all banknotes issued, effectively ending the use of private currency in Australia.
As a transitional measure, blank note forms of 16 banks were supplied to the government in 1911 to be overprinted as redeemable in gold and issued as the first Commonwealth notes. Some of these banknotes were overprinted by the Treasury and circulated as Australian banknotes until new designs were ready for Australia's first federal government-issued banknotes, which commenced in 1913.
The Australian pound was initially at par from 1910 with the British pound, but from 1931 it was devalued to A£1 = 16s sterling. This reflected its historical ties as well as a view about the stability in value of the British pound. The Australian pound was replaced by the Australian dollar on 14 February 1966, with a conversion rate of two dollars to the pound (A£1 = A$2).
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The Australian dollar was introduced in 1966
The Australian dollar was introduced on 14 February 1966 as a decimal currency, replacing the Australian pound at a conversion rate of two dollars to the pound. The introduction of the Australian dollar, or the Aussie dollar, was a significant step towards establishing a unique and independent monetary system for the country.
Prior to the adoption of the Australian dollar, the country had a complex monetary system that consisted of various forms of currency. The Australian pound, introduced in 1910, was the national currency until 1966. During this period, the country also used British silver and copper coins, Australian-minted gold sovereigns and half sovereigns, locally minted copper trade tokens, and private bank notes.
The move towards decimalisation gained momentum in 1959 with the establishment of the Decimal Currency Committee, chaired by Walter D. Scott. The committee's report in 1960 recommended decimalisation and proposed the introduction of a new currency modelled on South Africa's replacement of the South African pound with the rand.
The Australian dollar was introduced with denominations of $1, $2, $10, and $20 notes, followed by a $5 note in 1967. Over the years, higher denominations of $50 and $100 were also introduced. The $1 and $2 notes were eventually replaced by coins in 1984 and 1988, respectively.
The design and production of Australian currency have also evolved over time. The country transitioned from paper notes to polymer banknotes, becoming the first country to introduce polymer banknotes in 1988. Australian coins, produced by the Royal Australian Mint, feature images of the reigning monarch and Australian flora and fauna.
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The $1 banknote was replaced by a $1 coin in 1984
The history of Australian currency dates back to the early 19th century, when it was fixed to the British pound. Over the years, various foreign coins, gold sovereigns, copper trade tokens, and private bank notes were used. In 1910, the Australian Notes Act introduced a national currency, the Australian pound. The first Australian banknote, a ten-shilling denomination, was printed in 1913.
In 1966, Australia issued its first decimal series of banknotes, including the $1 banknote. However, on May 14, 1984, a significant change was made. The $1 banknote was replaced by a $1 coin, marking the first major alteration to the Australian circulating decimal coinage since its inception in 1966. This transition represented a milestone in the country's currency history.
The $1 coin was struck by the Royal Australian Mint and crafted from aluminium-bronze. Its design featured a Mob of Kangaroos, created by the renowned numismatic craftsman Stuart Devlin. Devlin had previously designed Australia's first six decimal coins, solidifying his connection with the country's currency. The $1 coin also bore the original decimal portrait of Queen Elizabeth II, designed by Arnold Machin.
The introduction of the $1 coin was motivated by its greater durability and cost-effectiveness compared to the $1 banknote. This shift towards a more durable and economical option reflected Australia's continuous innovation in the field of currency. Notably, Australia became the first country to introduce polymer banknotes in 1988, showcasing its commitment to advancements in the field.
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Australian money is made of polymer
Australia's banknotes are made of polymer, a synthetic material that gives the notes a waxy feel. They were the first country in the world to introduce polymer banknotes in 1988, coinciding with Australia's bicentennial year. By 1996, the Australian dollar was switched completely to polymer notes, and by 1998, all Australian banknotes were issued in polymer.
Polymer banknotes were developed by the Reserve Bank of Australia (RBA), the Commonwealth Scientific and Industrial Research Organisation (CSIRO), and the University of Melbourne. They are made from synthetic polymers such as biaxially oriented polypropylene (BOPP) and incorporate many security features not available in paper banknotes, including the use of metameric inks and optically variable devices (OVDs). Polymer banknotes also tend to last two to three times longer than paper notes, reducing replacement costs. For example, the US $10 bill, made of cotton fiber paper, is replaced every four and a half years.
The longer lifespan of polymer notes more than offset the slight increase in production costs. By 1998, the savings over paper notes were estimated to be more than $20 million per annum. Polymer notes are also waterproof, making them relatively cleaner as they are resistant to moisture and dirt. They are also more secure, as they are harder to counterfeit.
Australia has continuously innovated with its banknotes. For example, the new A$5 banknote boasts a rolling colour effect, and when moved a certain way, an image of an eastern spinebill (a native bird) appears to move its wings and change colours. In 2015, the Reserve Bank of Australia announced it would add a tactile feature to the notes to help visually impaired individuals determine the value of the note.
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Frequently asked questions
The Australian dollar was introduced on 14 February 1966 as a decimal currency, replacing the Australian pound.
Australia started making its own money in 1913, when the first Australian banknote was printed.
Australian coins are made from metals such as copper, aluminium, and nickel. Australian banknotes are made of polymer, which has a waxy feel.
The Royal Australian Mint in Canberra makes the coins, and the Reserve Bank of Australia prints the notes.
