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

How to minimise tax with a will

Inheritance tax implications in Australia may surprise some, as poor estate planning without proper wills or trusts can lead to costly tax bills and delays for beneficiaries.

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.

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.

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.

The investment mistake killing your returns

Retail investors face an increasingly complex product environment, but simplicity may be the most overlooked advantage in building a portfolio you can actually live with.

Welcome to Firstlinks Edition 667 with weekend update

The downfall of the giant and three lessons for investors.

  • 18 June 2026

Latest Updates

SMSF strategies

Meg on SMSFs: How wide is the ban on LRBAs?

The government's recent deal with the Greens has put SMSF property borrowing on the chopping block. The change raises tricky questions about timing, exceptions and what SMSFs will still be able to buy.

Shares

Why Australian shares are falling behind the world

Australia’s market boasts a long record of outperformance, but recent results tell a different story. Is the ASX’s lagging performance a temporary setback or evidence that structural forces will keep global markets ahead?

Taxation

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.

Shares

The next phase of Australian equity leadership

For years, banks have powered Australian sharemarket returns. But changing economic conditions, stretched valuations and global trends suggest the next generation of winners may not be found in familiar domestic sectors.

Economy

Global market growth hinges on Iran War and AI rollout

Global growth is facing mounting pressure from war, higher oil prices, inflation and trade tensions. But a wave of AI-related investment may prove powerful enough to support economic activity and reshape the outlook for markets.

Retirement

The retirees who can't spend

Why do so many retirees pass away with their wealth intact? Conventional wisdom blames pension rules for the reluctance to spend, but a case study from New Zealand shows that the answer may not be as predictable.

Investment strategies

Here’s my investment philosophy. What’s yours?

Investors often hear they need an “investment philosophy,” yet few know what that really means. Beneath the jargon sits a simple idea: a handful of core beliefs that shape every financial decision, for better or worse.

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.