Australian dollar facts for kids

Quick facts for kids

Australian dollar


$100 banknote (2020, obverse)	$1 coin (reverse)

ISO 4217 Code

AUD

User(s)

Australia

7 external territories

Ashmore and Cartier Islands

Australian Antarctic Territory

Christmas Island

Cocos (Keeling) Islands

Coral Sea Islands Territory

Heard Island and McDonald Islands

Norfolk Island

3 other countries

Kiribati (alongside Kiribati dollar)

Nauru

Tuvalu (alongside Tuvaluan dollar)

Inflation

3.2% (Australia only)

Source

Reserve Bank of Australia, September quarter 2025.

Pegged by

Tuvaluan dollar and Kiribati dollar at par

Subunit

1⁄100

Freq. used

5c, 10c, 20c, 50c, $1, $2

Rarely used

1c, 2c (no longer in production)

Banknotes

Freq. used

$5, $10, $20, $50, $100

Rarely used

$1, $2 (no longer in production)

Printer

Note Printing Australia

The Australian dollar (sign: $; code: AUD) is the official money of Australia. It is also used in Australia's external territories. These include Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. Three independent Pacific Island countries also use it: Kiribati, Nauru, and Tuvalu.

In April 2022, the Australian dollar was the sixth most traded currency in the world. It was also the sixth most held currency in global reserves in early 2024.

Australia introduced the dollar on February 14, 1966. It replaced the old Australian pound. One Australian pound was worth two dollars. The dollar is divided into 100 cents. We use the '$' symbol before the amount, like $5.

In 2023, there were about A$4.4 billion in coins and A$101.3 billion in notes. This is roughly A$6,700 per person in Australia. This total includes money held by banks and cash used in other countries.

How Australia Makes Money Rules

The Australian Parliament has the power to make laws about money. This includes currency, coins, and legal tender. States in Australia cannot make their own money. They can only use gold and silver coins for payments. Today, the Royal Australian Mint in Canberra makes Australian coins.

The Story of the Australian Dollar

Money Before the Dollar

Before 1901, Australia was made up of six separate colonies. Each colony had its own money. This money was very similar to the British currency. After Australia became a federation in 1901, colonial money was still used for about 10 years.

In 1902, a group in Parliament suggested a single, national currency. They wanted a decimal system. This idea was not put into action at the time.

The Australian pound was introduced in 1910. It was worth the same as the British pound. Like the British pound, it was divided into 240 pence. Or, it had 20 shillings, with each shilling having 12 pence. In 1931, the Australian currency lost some of its value.

Choosing the Dollar

In 1959, a committee was formed to study changing to a decimal currency. They suggested a new currency based on 10 shillings. The government agreed in 1961.

A public competition was held to name the new currency. Over 1,000 names were suggested! A shortlist included "austral," "crown," "dollar," and "royal." In June 1963, the government announced the name would be "royal." However, many people did not like this name. Three months later, they changed it to the "dollar."

The dollar officially replaced the pound on February 14, 1966. For example, £A9 16s 6d became $19.65. At first, the Australian dollar's value was linked to the US dollar. In 1967, Australia decided to keep its value against the US dollar. This meant it became more valuable compared to the British pound.

The Australian dollar is also official money in Kiribati, Nauru, and Tuvalu. It was once used in Papua New Guinea and the Solomon Islands. These countries later introduced their own currencies.

Australian Coins

Meet the Coins

In 1966, Australia introduced new coins. These included 1 and 2 cent coins (made of bronze). There were also 5, 10, and 20 cent coins (made of copper and nickel). A 50 cent coin was also made. The first 50 cent coins were silver, but this changed to copper and nickel.

In 1984, $1 coins were introduced. These were made of a mix of copper, aluminum, and nickel. In 1988, $2 coins were also introduced. These replaced the $1 and $2 banknotes. Australians often call these $1 and $2 coins "gold coins." The 1 and 2 cent coins stopped being made in 1991. They were removed from use in 1992. Now, cash payments are rounded to the nearest 5 cents.

**Australian Coins**
Reverse Image	Value	Composition	Obverse Design	Reverse Design	First Minted
	1c	97% copper, 2.5% zinc, 0.5% tin	Queen Elizabeth II	Feathertail glider	1966–1991 (no longer issued)
	2c	97% copper, 2.5% zinc, 0.5% tin	Queen Elizabeth II	Frill-necked lizard	1966–1991 (no longer issued)
	5c	Cupronickel (75% copper, 25% nickel)	Queen Elizabeth II, King Charles III (since 2024)	Echidna	1966
	10c			Superb lyrebird
	20c			Platypus
	50c			Coat of arms	1969
	$1	92% copper, 6% aluminium, 2% nickel	Queen Elizabeth II, King Charles III (since 2023)	Five kangaroos	1984
	$2	92% copper, 6% aluminium, 2% nickel	Queen Elizabeth II, King Charles III (since 2024)	Aboriginal elder and Southern Cross	1988
These images are to scale at 2.5 pixels per millimetre. For table standards, see the coin specification table. Source: Royal Australian Mint.

Making Australian Coins

The Royal Australian Mint makes all of Australia's coins. It is located in Canberra, the nation's capital. Since opening in 1965, the Mint has made over 14 billion coins. It can produce more than two million coins every day.

Fun Coin Facts

The Australian 5, 10, and 20 cent coins are similar in size to older British and New Zealand coins. This sometimes caused confusion. The Australian 50-cent coin is quite large. It weighs 15.55 grams (0.549 oz) and has a diameter of 31.51 millimetres (1+1⁄4 in). It is one of the largest coins used in the world.

Special Commemorative Coins

The Royal Australian Mint also makes special collector coins. These coins celebrate important events or people. For example, a 50-cent coin in 1970 marked James Cook's exploration. Other coins have celebrated royal events, the Commonwealth Games, and Australia's bicentenary. These special designs are also sometimes found on regular $1, $2, and 20 cent coins.

Australian Banknotes

From Paper to Polymer

The first paper Australian dollar notes were issued in 1966. These included $1, $2, $10, and $20 notes. Later, $5, $50, and $100 notes were added.

The $1 banknote was replaced by a $1 coin in 1984. The $2 banknote was replaced by a $2 coin in 1988. Even though they are no longer printed, all old Australian dollar notes are still legal tender.

After the changeover, some fake $10 notes appeared. This led the Reserve Bank of Australia to create new note technology. This resulted in the first polymer banknote in 1988.

The First Polymer Series

Australia was the first country to make banknotes from polymer plastic. These notes are cleaner, last longer, and can be recycled. Note Printing Australia makes them.

The first polymer note was a $10 note in 1988. It celebrated 200 years since Europeans settled in Australia. One side showed a young Aboriginal person and Aboriginal culture. The other side showed the ship Supply from the First Fleet and people representing Australia's diverse history.

The first full series of polymer notes began in 1992.

The $100 note features opera singer Dame Nellie Melba and soldier General Sir John Monash.
The $50 note features Aboriginal writer David Unaipon and Australia's first female politician, Edith Cowan.
The $20 note features Reverend John Flynn, who started the Royal Flying Doctor Service. It also shows Mary Reibey, a former convict who became a successful businesswoman.
The $10 note features poets Banjo Paterson and Dame Mary Gilmore. It includes tiny printed parts of their poems.
The $5 note features Queen Elizabeth II and Parliament House, Canberra.

Newer Polymer Notes

In 2012, the Reserve Bank of Australia decided to update the banknotes. The new notes have improved security features. They also include tactile features, like Braille dots, for people with vision impairment. The same people are featured on this second polymer series. However, after the death of Queen Elizabeth II, the $5 note will be redesigned. It will feature Indigenous history and culture.

Banknote Series (since 2016)
Value	Image		Design		Main colour	Window image	Issued
Value	Front	Back	Front	Back	Main colour	Window image	Issued
$5			Queen Elizabeth II	Parliament House	Purple	Top to Bottom window	1 September 2016
$10			Banjo Paterson	Dame Mary Gilmore	Blue	Top to bottom window	20 September 2017
$20			Mary Reibey	Reverend John Flynn	Red	Top to bottom window	9 October 2019
$50			David Unaipon	Edith Cowan	Yellow	Top to bottom window	18 October 2018
$100			Dame Nellie Melba	Sir John Monash	Green	Top to bottom window	29 October 2020
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table. Source: Reserve Bank of Australia.

Australia Helps Other Countries Print Money

Australia also prints polymer banknotes for many other countries. This is done through Note Printing Australia. Countries like Bangladesh, New Zealand, and Vietnam use Australian polymer technology.

How the Australian Dollar's Value Changes

The cost of one Euro in Australian Dollar

A Changing Value

Before 1983, the Australian dollar had a fixed value. Its value was tied to other currencies, like the British pound or the US dollar. This meant its value did not change much.

In December 1983, the Australian government decided to "float" the dollar. This means its value now changes freely. It depends on how much people want to buy or sell it on international money markets.

The dollar's value has changed a lot since then. In April 2001, it was at its lowest against the US dollar. In July 2011, it reached a record high. This was partly due to Australia's strong trade with Asian countries, especially China. Since 2013, its value has generally decreased. In 2024, it traded between $0.63 and $0.68 against the US dollar.

Why the Australian Dollar is Popular

The Australian dollar is one of the most traded currencies in the world. It is popular for several reasons:

Australia often has higher interest rates than many other countries.
The Australian economy and political system are generally stable.
The Australian dollar is seen as a good way to diversify investments. This is because it is closely linked to Asian economies and commodity prices.

Australia exports many raw materials like minerals and farm products. So, the dollar's value often goes up when global demand for these goods is high. It tends to fall when commodity prices drop. The Australian dollar is also a reserve currency. This means other countries hold it as part of their financial reserves. For example, the Central Bank of Russia started holding Australian dollar reserves in 2011.

Using Australian Money

Legal Tender in Australia

Australian banknotes are always considered legal tender in Australia. This means they are valid for any amount. Australian coins are also legal tender, but with some limits:

Old 1c and 2c coins (no longer made) are valid for payments up to 20c.
5c, 10c, 20c, and 50c coins are valid for payments up to $5.
$1 coins are valid for payments up to $10.
$2 coins are valid for payments up to $20.

However, businesses do not always have to accept cash. They can choose to accept other payment methods, like card payments.

Legal Tender Outside Australia

Australian notes and coins are also legal tender in Kiribati, Nauru, and Tuvalu. Nauru has never had its own currency. Tuvalu and Kiribati have their own dollars, but they are worth the same as the Australian dollar. These countries no longer make their own coins or banknotes. So, the Australian dollar is the main currency used there.