Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 158

We still care about real cash

Even as the world moves closer to becoming ‘cashless’, we seem to care deeply about our cash. Judging from the reaction to the announcement of the design of a new $5 note, we care passionately about how our cash looks.

For those who haven’t been caught up in the frenzy about the new note, let me briefly fill you in.

The Reserve Bank of Australia recently released images of the new $5 note that will be introduced into circulation from 1 September 2016 year, the beginning of a process of issuing new notes across the range of denominations. New artwork will be added on each new note including different species of wattle and Australian native birds.

The new series of notes will have some significantly improved security features to help prevent counterfeiting. Also, to assist the visually impaired, there is a new tactile element that will mean each denomination of note feels different.

Sounds good, no controversy there ... not!

No sooner had the pictures of the new $5 note gone up on the RBA’s website … controversy. Apart from some who simply want the picture of the Queen to go, most of the criticism was levelled at the wattle. Some think it looks like yellow caterpillars, others see bacteria or even … well, vomit. The tactile features are appreciated, though one comment suggested that “only the vision impaired will like this new note”. Not the reaction Glenn Stevens and his team were expecting.

It’s wonderful that we’ve finally done with notes what we did with coins more than 30 years ago – make them easier for the visually-impaired to use. Some of the simple things in life that most of us take for granted, like having a look at the change we’re given to make sure we haven’t been diddled, are difficult for a significant number of people.

A bit of coin history

I was part of the team at Treasury that introduced the $1 coin back in 1983-84 with an interrupted serrated edge to assist the visually-impaired identify it more easily. It might actually surprise a lot of people to realise that Australia did not always have a $1 coin. When decimal currency was first introduced on Valentine’s Day in 1966 the $1 denomination was a note. A rather drab, brown-coloured note, which had Queen Elizabeth and the Coat of Arms on it. The decision to switch to a coin meant that another denomination had to be redesigned so that the image of the Queen appeared somewhere on our paper currency. The $5 note, which originally had Joseph Banks on one side and Caroline Chisholm on the other, was chosen and redesigned for that purpose. There was, at that time, almost no opposition to the idea that Australia’s currency had to honour the Queen in such a way.

The design for the $1 coin triggered some amusing internal debate at Treasury. The Treasurer at the time was John Howard, who proposed that we should look for designers to portray Australian industry. The idea of being Aussie in some way was wholeheartedly embraced by staff, but we could not see how a picture of, say, a mining head poppet would distinguish us from any other country that had mines. Fortunately, Stuart Devlin, who’d designed the original decimal coins 18 years earlier, came up with the lovely image of five kangaroos that we still have on the $1 piece.

Many people simplistically assumed that the $1 coin would be bigger than the 50 cent piece since it’s worth twice as much. Apart from the fact that no coin is really ‘worth’ its face value except by the decree of the government, the critics overlooked that it was going to be gold in colour, rather than silver, and so didn’t need to be bigger. Besides, adding a coin larger than the 50 cent piece would have made people’s pockets ridiculously heavy. The size was set as very similar to the 10 cent piece.

Features for the visually-impaired

The easiest way to tell coins apart is from their size and colour. While most people could tell the difference between the gold coloured $1 and the silver coloured 10 cents, the visually-impaired don’t have that luxury. We devised a series of tests, using visually-impaired people and blind-folded staff members, to evaluate a range of physical features. We found that the interrupted serrations worked well.

I must share an anecdote about the tests. A lady who worked in the Treasury typing pool (sigh, yes, I’m old enough to have worked in the days before word processing and desktop computers) was blind. Her work was to type dictated recordings and she was astonishingly accurate.

When we tested the new coin with her she revealed that, though the interrupted serrations were helpful, she personally didn’t need it. She could distinguish every coin by the sound it made when dropped on the table. We rolled them all – 1 cent, 5 cent, 10 cent, etc – or we dropped them or we flipped them, and this lady identified them correctly every time.

A feature to assist the visually impaired was not included in the original note design, but it changed as a result of a campaign started by a young visually-impaired boy. To him and to the officers of the RBA who listened to his arguments, I say ‘well done’.

More goes into the design of notes and coins than meets the eye.

 

Warren Bird is Executive Director of Uniting Financial Services, a division of the Uniting Church (NSW & ACT). He has 30 years’ experience in fixed income investing. He also serves as an Independent Member of the GESB Investment Committee.

 

  •   2 June 2016
  • 2
  •      
  •   
banner

Most viewed in recent weeks

Testamentary trusts post-budget: Estate planning, tax reform and the ‘death tax’ debate

Proposed Budget changes to taxation are casting new uncertainty over testamentary trusts, prompting closer scrutiny of estate planning structures and the real implications of reforms still taking shape.

High quality businesses are on sale

Beneath the dominance of the ASX's largest stocks, much of the market has been left behind. High-quality companies are now trading at levels rarely seen, offering opportunities for investors willing to look deeper.

Meg on SMSFs: The CGT changes don’t impact super but what about Div 296 tax decisions?

New CGT rules could tip the scales in the super vs non-super debate. For those facing the Division 296 tax, the case for withdrawing has gotten more complex. A "comparison rate" tool may help assess decisions.

The strange effect of the 30% minimum capital gains tax

The 30% minimum tax on capital gains sits at the heart of the budget's proposed reforms. Yet the mechanics reveal anomalies that introduce unexpected distortions that raise questions about its design.

Ranking three common retirement strategies

The defining challenge of retirement isn't just about building wealth, it's about converting your lifetime savings into sustainable income. A holistic understanding of different strategies can improve long-term outcomes.

Welcome to Firstlinks Edition 667 with weekend update

The downfall of the giant and three lessons for investors.

  • 18 June 2026

Latest Updates

Planning

Does your will qualify for the discretionary testamentary trust exemption?

Treasury has confirmed the exemption many families were hoping for. But buried in the fine print are two conditions that could leave some wills on the wrong side of the exemption, despite years of careful planning.

Lithium's latest drop and what it means for ASX investors

Lithium's latest sell-off has punished ASX miners as prices remain hostage to shifting expectations. The key challenge is navigating a market prone to extreme volatility despite a strong case for the long-term demand outlook.

Investment strategies

CGT reform and fund turnover: who really feels the impact?

The implications of CGT reform are far and wide. As the 50% discount gives way to inflation indexation, turnover and return profiles may become critical drivers of after-tax performance. Some strategies face a far greater hit.

Superannuation

Super was built for a very different Australia

Our retirement system was built around assumptions that no longer hold. Lower homeownership, longer lifespans and changing expectations are exposing cracks that policymakers and super funds need to address.

Retirement

Retirement in reality - 4 months in

Many people spend years planning financially for retirement but little time preparing for what comes next. Four months in, here are the surprising lessons I've learnt on finding purpose, social connection and healthy habits.

Investment strategies

After the Budget, Australia needs its own definition of quality

As tax reforms reshape investment incentives, investors should rethink what quality investing means in the uniquely concentrated Australian market, where traditional frameworks may not translate as effectively.

Datacenters are the new shale oil

Why are tech giants pouring billions into datacentres when the economics look questionable? The most dangerous words in investing may be: "everyone else is doing it". Today's AI boom has striking parallels with the shale bust.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.