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	3.8% (Australia only)
Source	Reserve Bank of Australia, June quarter 2024.
Pegged by	Tuvaluan dollar and Kiribati dollar at par
Subunit
1⁄100	cent
Symbol	$
cent	c
Coins
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: $; code: AUD) is the official money of Australia. It is also used in Australia's territories and three independent Pacific Island countries: Kiribati, Nauru, and Tuvalu. You might also see it called A$ or AU$ to tell it apart from other types of dollars.

As of April 2022, the Australian dollar was the sixth most traded currency in the world. This means it's one of the most popular currencies used for buying and selling between countries. It was also the seventh most-held currency by countries as a reserve.

The Australian dollar was introduced on 14 February 1966. It replaced the old Australian pound system, which was not based on tens. The new dollar made things simpler, with two dollars being equal to one pound (A£1 = A$2). Each dollar is divided into 100 cents. The dollar symbol ($) is placed before the amount, like $5.

How Australia's Money System Works

Australia's government has the power to make laws about money. This is written in the country's main rule book, the Constitution. States in Australia are not allowed to make their own money. Only the federal government can do this.

Australian coins are made at the Royal Australian Mint in Canberra.

A Brief History of the Australian Dollar

Before 1901, Australia was made up of six separate colonies. Each colony had its own money, which was very similar to the British money system. After the colonies joined together to form Australia, they still used these different types of money for about 10 more years.

In 1902, a group of lawmakers suggested that Australia should have one national money system based on tens. However, this idea was not put into action at that 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 20 shillings. In 1931, the Australian pound became worth less than the British pound.

Another suggestion for a decimal money system came in 1937, but it was also not accepted.

Why Australia Chose the Dollar

In 1959, a committee was set up to study if Australia should switch to a decimal currency. They suggested a new currency, similar to how South Africa changed its money. In 1961, the government agreed to switch to a decimal system.

A public competition was held to name the new currency. Over 1,000 names were suggested! A few popular choices were "austral," "crown," "dollar," and "royal." In 1963, it was announced the new currency would be called the "royal." But many people didn't like this name. So, a few months later, the name was changed to the "dollar."

The Australian dollar officially replaced the pound on 14 February 1966. For example, if something cost £9 16s 6d (nine pounds, sixteen shillings, and sixpence) before, it would cost $19.65 after the change.

At first, the Australian dollar's value was linked to the British pound. But in 1967, Australia decided to link its dollar to the US dollar instead. This meant the Australian dollar became stronger compared to the British pound.

The Australian dollar is also official money in Christmas Island, Cocos (Keeling) Islands, and Norfolk Island. It was also used in Papua New Guinea until 1975 and in the Solomon Islands until 1977.

Australian Coins

The Australian 50-cent coin is one of the largest coins in the world.

In 1966, Australia introduced coins in different values: 1 and 2 cents (bronze), 5, 10, and 20 cents (silver-coloured), and 50 cents (silver, then later silver-coloured). The silver 50-cent coins were stopped because the silver in them became worth more than the coin's face value.

Later, $1 coins were introduced in 1984, followed by $2 coins in 1988. These new coins replaced the paper banknotes of the same value. In Australia, people sometimes call the $1 and $2 coins "gold coins" because of their colour.

The 1 and 2 cent coins were stopped in 1991 and removed from circulation in 1992. Since then, cash payments are usually rounded to the nearest 5 cents.

Australian Coins

Image		Value	Technical details				Description			First made
Front	Back		Diameter	Thickness	Weight	Material	Edge	Front side	Back side
		1c	17.65 mm	>1.4 mm	2.60 g	97% copper 2.5% zinc 0.5% tin	Smooth	Queen Elizabeth II	Feathertail glider	1966–1991 (not made anymore)
		2c	21.59 mm	<1.9 mm	5.20 g				Frill-necked lizard
		5c	19.41 mm	1.3 mm	2.83 g	Cupronickel 75% copper 25% nickel	Grooved	Queen Elizabeth II, King Charles III (since 2024)	Echidna	1966
		10c	23.60 mm	1.5 mm	5.65 g				Superb lyrebird
		20c	28.65 mm	2.0 mm	11.3 g				Platypus
		50c	Dodecagon 31.65 mm (across flats)	2.0 mm	15.55 g		Smooth		Coat of arms	1969
		$1	25.00 mm	2.8 mm	9.00 g	92% copper 6% aluminium 2% nickel	Broken grooves	Queen Elizabeth II, King Charles III (since 2023)	Five kangaroos	1984
		$2	20.50 mm	3.0 mm	6.60 g			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.

The Royal Australian Mint in Canberra makes Australia's coins. Since it opened in 1965, it has made billions of coins. It can make over two million coins every day!

Some Australian coins are similar in size to older coins from New Zealand and the UK. This sometimes caused confusion, but New Zealand and the UK have since changed their coin sizes.

The Australian 50-cent coin is quite large. It weighs about 15.55 grams and is about 31.51 mm wide.

Special Commemorative Coins

The Royal Australian Mint also makes special coins for collectors. These are called commemorative coins. They celebrate important events or people.

For example, the first special 50-cent coin was made in 1970. It celebrated James Cook's journey along Australia's east coast. Other coins have celebrated royal events, sports games, and Australia's 200th birthday.

More recently, Australia made its first triangular coin in 2013. This $5 silver coin celebrated the 25th anniversary of Parliament House.

Australian Banknotes

The First Paper Notes

The first paper Australian dollar notes were printed in 1966. These included $1, $2, $10, and $20 notes. The $5 note came out in 1967, followed by the $50 in 1973 and the $100 in 1984.

The $1 and $2 banknotes were later replaced by coins in 1984 and 1988. Even though they are not printed anymore, all old Australian dollar notes are still legal to use.

Soon after the dollar was introduced, some fake $10 notes were found. This led the Reserve Bank of Australia to create new, safer banknote technology.

The First Polymer Notes

Australia was the first country to make banknotes out of a special type of plastic called polymer. These plastic notes are cleaner, last longer, and can be recycled.

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

The first full series of polymer notes came out starting in 1992. Each note featured important Australians:

• The $100 note shows famous 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 shows Reverend John Flynn, who started the Royal Flying Doctor Service, and Mary Reibey, a successful businesswoman.
• The $10 note features poets Banjo Paterson and Dame Mary Gilmore. You can even find tiny words from their poems printed on the note.
• The $5 note features Queen Elizabeth II and Parliament House, Canberra.

Australia also prints polymer banknotes for other countries. This is done by Note Printing Australia, a company owned by the Reserve Bank of Australia. Many countries now use or are interested in this plastic money technology.

The Second Polymer Series

In 2012, the Reserve Bank of Australia announced plans to update the banknotes. The new notes have improved security features to prevent fakes. They also include special raised dots for people who are visually impaired.

The people featured on the notes remained the same. However, after the death of Queen Elizabeth II, the government announced that the $5 note will get a new design. This new design will show Indigenous Australian history and culture.

Banknote series (since 2016)

Value	Image		Design		Size1 (mm)	Weight1 (g)	Main colour	Window image	Raised features3	Printed	Issued
	Front	Back	Front	Back
$5			Queen Elizabeth II	Parliament House4	130 × 65	unknown	Purple	Clear window (top to bottom)2	Federation star	Current	1 September 2016
$10			Banjo Paterson	Dame Mary Gilmore	137 × 65	unknown	Blue	Clear window (top to bottom)	Pen nib	Current	20 September 2017
$20			Mary Reibey	Reverend John Flynn	144 × 65	0.82g	Red	Clear window (top to bottom)	Compass	Current	9 October 2019
$50			David Unaipon	Edith Cowan	151 × 65	unknown	Yellow	Clear window (top to bottom)	Book	Current	18 October 2018
$100			Dame Nellie Melba	Sir John Monash	158 × 65	unknown	Green	Clear window (top to bottom)	Fan	Current	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.
Notes: The thickness and weight of notes can vary slightly. A new clear plastic window runs from the top to the bottom of the note. Raised features are found inside the small window. The back of the $5 note has tiny words from the Constitution of Australia.

How the Australian Dollar's Value Changes

Understanding Exchange Rates

The cost of one Euro in Australian Dollar.

Before 1983, the Australian dollar had a fixed exchange rate. This means its value was set against another currency, like the British pound or the US dollar. For example, in 1967, Australia decided to keep its dollar's value fixed against the US dollar.

In December 1983, the Australian government decided to let the dollar's value float. This means its value now changes based on how much people want to buy or sell it on international money markets. It also depends on how much Australia buys and sells with other countries.

After it started floating, the Australian dollar's value changed a lot. It reached a high of $0.88 against the US dollar in 1988. Its lowest point was 47.75 US cents in April 2001. In 2010, it reached the same value as the US dollar for the first time since floating. In 2011, it hit a record high of $1.1080 against the US dollar. This high value was partly because of economic problems in Europe and Australia's strong trade with Asian countries like China.

Since 2013, the Australian dollar's value has generally gone down against the US dollar. As of 2024, it usually trades between $0.63 and $0.68.

What Makes the Dollar's Value Change?

The Australian dollar is popular with currency traders around the world. This is because Australia often has higher interest rates than some other countries. Also, Australia's economy and government are generally stable. The Australian dollar is also seen as a good way to balance investments, especially because Australia trades a lot with Asian economies and has many natural resources.

Experts believe that the prices of raw materials (like minerals and farm products) are the main reason the Australian dollar's value changes. When global demand for these materials is high, Australia exports more, and the dollar's value goes up. When prices fall, the dollar's value tends to go down. This is different from some other major currencies, which might get stronger when stock markets are falling.

The Australian dollar is also a reserve currency. This means other countries hold it as part of their financial reserves. In 2011, Russia's central bank even announced it would start holding Australian dollar reserves.

Most traded currencies by value
Currency distribution of global foreign exchange market turnover

Rank	Currency	ISO 4217 code (symbol)	% daily share (April 2016)
1	United States dollar	USD ($)	87.6%
2	Euro	EUR (€)	31.4%
3	Japanese yen	JPY (¥)	21.6%
4	Pound sterling	GBP (£)	12.8%
5	Australian dollar	AUD ($)	6.9%
6	Canadian dollar	CAD ($)	5.1%
7	Swiss franc	CHF (Fr)	4.8%
8	Chinese yuan	CNY (¥)	4.0%
9	Swedish krona	SEK (kr)	2.2%
10	New Zealand dollar	NZD ($)	2.1%
11	Mexican peso	MXN ($)	1.9%
12	Singapore dollar	SGD ($)	1.8%
13	Hong Kong dollar	HKD ($)	1.7%
14	Norwegian krone	NOK (kr)	1.7%
15	South Korean won	KRW (₩)	1.7%
16	Turkish lira	TRY (₺)	1.4%
17	Russian ruble	RUB (₽)	1.1%
18	Indian rupee	INR (₹)	1.1%
19	Brazilian real	BRL (R$)	1.0%
20	South African rand	ZAR (R)	1.0%
Other			7.1%
Total Most traded currencies by value Currency distribution of global foreign exchange market turnover Rank Currency ISO 4217 code Symbol or abbreviation Proportion of daily volume, April 2019 Proportion of daily volume, April 2022 1 U.S. dollar USD US$ 88.3% 88.5% 2 Euro EUR € 32.3% 30.5% 3 Japanese yen JPY ¥ / 円 16.8% 16.7% 4 Sterling GBP £ 12.8% 12.9% 5 Renminbi CNY ¥ / 元 4.3% 7.0% 6 Australian dollar AUD A$ 6.8% 6.4% 7 Canadian dollar CAD C$ 5.0% 6.2% 8 Swiss franc CHF CHF 5.0% 5.2% 9 Hong Kong dollar HKD HK$ 3.5% 2.6% 10 Singapore dollar SGD S$ 1.8% 2.4% 11 Swedish krona SEK kr 2.0% 2.2% 12 South Korean won KRW ₩ / 원 2.0% 1.9% 13 Norwegian krone NOK kr 1.8% 1.7% 14 New Zealand dollar NZD NZ$ 2.1% 1.7% 15 Indian rupee INR ₹ 1.7% 1.6% 16 Mexican peso MXN $ 1.7% 1.5% 17 New Taiwan dollar TWD NT$ 0.9% 1.1% 18 South African rand ZAR R 1.1% 1.0% 19 Brazilian real BRL R$ 1.1% 0.9% 20 Danish krone DKK kr 0.6% 0.7% 21 Polish złoty PLN zł 0.6% 0.7% 22 Thai baht THB ฿ 0.5% 0.4% 23 Israeli new shekel ILS ₪ 0.3% 0.4% 24 Indonesian rupiah IDR Rp 0.4% 0.4% 25 Czech koruna CZK Kč 0.4% 0.4% 26 UAE dirham AED د.إ 0.2% 0.4% 27 Turkish lira TRY ₺ 1.1% 0.4% 28 Hungarian forint HUF Ft 0.4% 0.3% 29 Chilean peso CLP CLP$ 0.3% 0.3% 30 Saudi riyal SAR ﷼ 0.2% 0.2% 31 Philippine peso PHP ₱ 0.3% 0.2% 32 Malaysian ringgit MYR RM 0.1% 0.2% 33 Colombian peso COP COL$ 0.2% 0.2% 34 Russian ruble RUB ₽ 1.1% 0.2% 35 Romanian leu RON L 0.1% 0.1% … Other 2.2% 2.5% Total 200.0% 200.0% || style="text-align:right;" | 200.0%

Current Exchange Rates

What is Legal Tender?

In Australia

In Australia, all Australian banknotes are considered legal tender. This means they are official money and can be used to pay for things, with no limit on the amount.

Australian coins are also legal tender, but with some limits:

• 1c and 2c coins (which are no longer made) can be used for payments up to 20 cents.
• 5c, 10c, 20c, and 50c coins (any mix) can be used for payments up to $5.
• $1 coins can be used for payments up to $10.
• $2 coins can be used for payments up to $20.
• Special $10 coins (not for everyday use) can be used for payments up to $100.

However, even if something is legal tender, businesses don't always have to accept cash. The Reserve Bank says businesses can choose to only accept non-cash payments, like card payments. But if a business takes someone to court over a debt, they might be required to accept cash.

Outside Australia

Australian notes and coins are also legal money 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 local dollars are legal in their own countries but not in Australia.

Since the 1990s, Tuvalu and Kiribati have not made their own coins or banknotes. Because of this, the Australian dollar is the main currency used in both countries.

Tuvalu also makes special collector coins, but these are not used for everyday shopping.

See Also

In Spanish: Dólar australiano para niños

• Banking in Australia
• Brass razoo
• Coins of Australia
• Economy of Australia
• Note Printing Australia
• Section 51 (xii) of the Constitution of Australia