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

Retirement income expectations hit new highs

Younger Australians think they’ll need $100k a year in retirement - nearly double what current retirees spend. Expectations are rising fast, but are they realistic or just another case of lifestyle inflation?

Four best-ever charts for every adviser and investor

In any year since 1875, if you'd invested in the ASX, turned away and come back eight years later, your average return would be 120% with no negative periods. It's just one of the must-have stats that all investors should know.

Why super returns may be heading lower

Five mega trends point to risks of a more inflation prone and lower growth environment. This, along with rich market valuations, should constrain medium term superannuation returns to around 5% per annum.

The hidden property empire of Australia’s politicians

With rising home prices and falling affordability, political leaders preach reform. But asset disclosures show many are heavily invested in property - raising doubts about whose interests housing policy really protects.

Preparing for aged care

Whether for yourself or a family member, it’s never too early to start thinking about aged care. This looks at the best ways to plan ahead, as well as the changes coming to aged care from November 1 this year.

Our experts on Jim Chalmers' super tax backdown

Labor has caved to pressure on key parts of the Division 296 tax, though also added some important nuances. Here are six experts’ views on the changes and what they mean for you.        

Latest Updates

A speech from the Prime Minister on fixing housing

“Fellow Australians, I want to address our most pressing national issue: housing. For too long, governments have tiptoed around problems from escalating prices, but for the sake of our younger generations, that stops today.”        

Taxation

Family trusts: Are they still worth it?

Family trusts remain a core structure for wealth management, but rising ATO scrutiny and complex compliance raise questions about their ongoing value. Are the benefits still worth the administrative burden?

Exchange traded products

Multiple ways to win

Both active and passive investing can work, but active investment doesn’t in the way it is practised by many fund managers and passive investing doesn’t work in the way most end investors practise it. Here’s a better way.

Economy

The Future Fund may become a 'bad bank' for problem home loans

The Future Fund says it will not be paying defined benefit pensions until at least 2033 - raising as many questions as answers. This points to an increasingly uncertain future for Australia's sovereign wealth fund.

Investment strategies

Managed accounts and the future of portfolio construction

With $233 billion under management, managed accounts are evolving into diversified, transparent, and liquid investment frameworks. The rise of ETFs and private markets marks a shift in portfolio design and discipline. 

Property

Commercial property prospects are looking up

Commercial property is seeing the same supply issues as the residential market. Given the chronic undersupply and a recent pickup in demand, it bodes well for an upturn in commercial real estate prices.

Infrastructure

Private toll roads need a shake-up

Privatised toll roads in Australia help governments avoid upfront costs but often push financial risks onto taxpayers while creating monopolies and unfair toll burdens for commuters and businesses.

Sponsors

Alliances

© 2025 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.