A Guide to Collecting Australian Decimal Paper Notes

Australian decimal paper banknotes were issued from 1966 until the polymer transition beginning in 1992. They cover just over two decades of production, yet include a wide variety of designs, signature combinations, and printing variations. Whether you are new to collecting or building an advanced set, understanding what makes these notes collectible is the first step toward informed buying and selling.

What Are Australian Decimal Paper Notes?

The Decimal Changeover of 1966

On 14 February 1966, Australia replaced the pound system with decimal currency. The Reserve Bank of Australia adopted the Australian dollar at a conversion rate of two dollars to one pound and issued the first decimal paper banknotes in four denominations: $1, $2, $10, and $20. The $5 was withheld until May 1967 to allow the public time to adjust.

The RBA designed the first decimal notes to ease the transition. The $1 replaced the ten-shilling note and shared a similar dark brown-green colour. The $2 replaced the one-pound note in green. The $10 and $20 similarly echoed the colours of their pre-decimal predecessors. This colour continuity was a deliberate choice to minimise public confusion during the changeover.

The Paper Note Era: 1966 to 1988

The paper decimal series went through several design iterations and security upgrades over its lifespan. The core designs by Gordon Andrews remained largely consistent, but the RBA introduced incremental improvements. These included changes to paper composition, watermark designs, and printing techniques. Each change produced distinct varieties that collectors now catalogue and pursue.

The era ended when the RBA began issuing polymer notes in 1992, following the 1988 commemorative trial. The last paper notes continued circulating well into the 1990s.

Key Denominations and Series

The $1 Note (1966 to 1984)

The $1 note featured Queen Elizabeth II on the obverse and Aboriginal art motifs on the reverse. It was the workhorse denomination of the decimal paper series, issued with multiple signature combinations:

Coombs/Wilson (1966): the first decimal issue, highly sought after in high grades
Coombs/Randall (1968): a short-run combination and among the scarcest standard decimal notes
Phillips/Randall (1969): another relatively scarce pairing
Phillips/Wheeler (1972)
Knight/Wheeler (1976)
Knight/Stone (1979)
Johnston/Stone (1982)

The Coombs/Randall $1 is widely regarded as the key note of the decimal paper series. Its short production run makes it rare, and uncirculated examples command strong premiums. The $1 note was replaced by the $1 coin in 1984.

The $2 Note (1966 to 1988)

The $2 featured John Macarthur on the obverse and William Farrer on the reverse. It followed a similar pattern of signature combinations. The Coombs/Wilson first issue and the Phillips/Randall variety are again among the most desirable. The $2 was replaced by the $2 coin in 1988.

The $5 Note (1967 to 1991)

The $5 was the last denomination introduced to the decimal paper series, arriving in May 1967. It features Sir Joseph Banks on the obverse and Caroline Chisholm on the reverse. The Gothic serial number variety of the early Phillips/Randall $5 is a notable collecting target, as is the first-prefix Coombs/Randall issue.

The $10 Note (1966 to 1991)

The $10 features Francis Greenway and Henry Lawson. This denomination offers a good spread of signature varieties and is widely collected as a type set. Early Coombs/Wilson examples in uncirculated condition are the highlight.

The $20 Note (1966 to 1994)

The $20 features Sir Charles Kingsford Smith and Lawrence Hargrave. It is the highest denomination regularly encountered in the paper decimal series. The Coombs/Wilson first issue is the key date, while Phillips/Wheeler and Knight/Wheeler notes offer more affordable entry points.

The $50 and $100 Notes

The $50 was introduced in 1973, featuring Howard Florey and Ian Clunies Ross. The $100 was introduced in 1984, featuring Sir Douglas Mawson and John Tebbutt. Both higher denominations are collected less frequently due to their original face values, but they remain important for completists.

Understanding Banknote Grading

Why Grading Matters

Condition is the single most important factor in determining the value of a collectible banknote. Two notes of identical denomination, date, and signature combination can differ in value by a factor of ten or more depending on grade. Learning to assess condition accurately is essential for any serious collector.

The Grading Scale

Australian banknote dealers and collectors generally use a grading scale that aligns with international standards. The most commonly referenced grades are:

Uncirculated (UNC): A note showing no signs of circulation. The paper is crisp, the colours are bright, and there are no folds, creases, or handling marks. Uncirculated notes command the highest premiums across all series.

About Uncirculated (aUNC): A note that appears uncirculated at first glance but shows very minor evidence of handling, such as a single light fold or slight softening at the corners.

Extremely Fine (EF): A note with minimal circulation evidence, typically two or three light folds, but with bright colours and no significant surface wear.

Very Fine (VF): A note that has clearly circulated but retains attractive eye appeal. Multiple folds are present, but the paper remains relatively crisp and the imagery is clear.

Fine (F): A well-circulated note with numerous folds and some softening of the paper, but with all design elements clearly visible.

Very Good (VG) and below: Heavily circulated notes showing significant wear, staining, or damage. While less desirable, these grades may be acceptable for rare varieties where higher grades are unobtainable.

Professional Grading: PMG and PCGS

For notes of significant value, third-party grading provides an objective assessment of condition and authenticity. The two leading services used by Australian collectors are:

Paper Money Guaranty (PMG): The world's largest third-party banknote grading service. PMG encapsulates notes in tamper-evident holders with a numeric grade on a 70-point scale. A PMG 65 (Gem Uncirculated) or above is considered a premium grade.

PCGS Banknote: A division of Professional Coin Grading Service. PCGS Banknote uses a similar numeric grading scale and encapsulation process. Both services are widely accepted in the Australian market.

Professional grading typically costs $30 to $80 per note depending on value and service level. For notes worth several hundred dollars or more, the investment in authentication and grading can significantly enhance both liquidity and realised price at sale. Graded notes from PMG and PCGS are widely traded with confidence.

Which Decimal Paper Notes Are Most Sought After?

Signature Rarities

The most valuable standard-issue decimal paper notes are defined by their signature combinations. Short-run pairings, where one signatory served only briefly, produced fewer notes and greater scarcity. The standout rarities include:

$1 Coombs/Randall: the key to the decimal paper set
$2 Phillips/Randall: scarce in all grades, rare in uncirculated
$5 Coombs/Randall: difficult to source in any condition
$10 Coombs/Wilson: first decimal $10, prized in UNC
$20 Coombs/Wilson: expensive in high grade due to low survival rates

Star Replacement Notes

Star notes, indicated by an asterisk or star symbol in the serial number, were issued to replace notes rejected during the printing process. They were produced in far smaller quantities than standard notes. Star replacements are significantly scarcer across all denominations and signature combinations. A star note in the Coombs/Randall $1 combination is an extreme rarity.

First and Last Prefixes

Notes from the first prefix and last prefix of a run are collected for their positional significance. First-prefix notes carry premiums, especially in uncirculated condition.

Low Serial Numbers

Notes with particularly low serial numbers, such as 000001 through 000010, are perennial collector favourites. These were often retained by bank officials or presentation recipients, meaning they tend to survive in better condition than standard circulation notes.

Condition Tips for Collectors

Storage

Store banknotes flat in acid-free currency sleeves or albums designed for banknote preservation. Avoid PVC-containing holders, which can cause chemical damage over time. Keep notes in a cool, dry environment away from direct sunlight.

Handling

Handle collectible notes with clean, dry hands or cotton gloves. Hold notes by the edges to avoid transferring oils to the paper surface. Never fold, staple, or use adhesive tape on a collectible note.

What Diminishes Value

Common condition issues that reduce a note's value include pin holes, writing or stamps on the surface, trimming of margins, tape residue or repairs, excessive creasing, staining, and tears. Notes that have been washed or pressed to simulate a higher grade are penalised when identified by experienced collectors or graders.

Where to Buy and Sell Australian Decimal Paper Notes

Auction Houses

The two leading Australian numismatic auction houses are Noble Numismatics and Downies. Both conduct regular sales featuring banknote sections and provide reliable provenance and cataloguing. Buyers should factor in buyer's premiums, typically 18 to 22 per cent, when calculating total cost.

Specialist Dealers

Established dealers such as Sterling Currency, Coinworks, and The Right Note maintain inventories of decimal paper notes across all grades and price points. Buying from reputable dealers offers the advantage of return policies and expert attribution.

Online Marketplaces

eBay Australia and dedicated numismatic forums provide additional buying and selling options. Buyers should exercise caution regarding attribution, grading claims, and authenticity. Purchasing professionally graded notes from online sources reduces risk.

Price Tracking with NoteScout

Knowing what a note is worth before buying or selling is important. NoteScout aggregates current banknote listings and recent sales data from across the Australian market. Whether you are assessing a potential purchase at auction or pricing a note for sale, NoteScout's price comparison tools help collectors make data-driven decisions rather than relying on outdated catalogue values.

Building a Decimal Paper Note Collection

Type Set Approach

A popular starting strategy is the type set: acquiring one note of each denomination in the decimal paper series. This gives you a representative example of the $1, $2, $5, $10, $20, $50, and $100. Collectors typically begin with notes in VF to EF grades and upgrade individual notes over time as better examples become available.

Signature Set

The more advanced approach is to collect one example of each signature combination within a denomination, or across all denominations. This requires patience and deeper pockets, particularly for the scarce Coombs/Randall and Phillips/Randall pairings, but it produces a comprehensive and historically meaningful collection.

Budget Considerations

The decimal paper series offers a wide range of price points. Common signature combinations in circulated grades can be acquired for $20 to $50 per note. Uncirculated examples of common varieties typically range from $100 to $500. Scarce signature combinations in high grade can reach several thousand dollars, while the rarest star notes and first-prefix pieces can command five-figure sums.

Frequently Asked Questions

What are Australian decimal paper notes?

Australian decimal paper notes are cotton-fibre banknotes issued by the Reserve Bank of Australia from 14 February 1966 until the transition to polymer notes began in 1992. They were issued in $1, $2, $5, $10, $20, $50, and $100 denominations.

Which Australian decimal paper note is the most valuable?

The $1 Coombs/Randall note is widely considered the key rarity of the decimal paper series, particularly in uncirculated condition. Star replacement notes across multiple denominations also command significant premiums due to their low mintages.

How do I get my banknotes professionally graded?

You can submit notes to Paper Money Guaranty (PMG) or PCGS Banknote for third-party grading. Both services accept submissions from Australia, either directly or through authorised dealers. Grading fees typically range from $30 to $80 per note depending on declared value and turnaround time.

Are decimal paper notes still legal tender?

Yes. All Australian decimal paper banknotes remain legal tender at face value. However, their collectible value almost always exceeds their face value, so spending them would represent a financial loss. The RBA confirms that old paper notes can still be exchanged at banks.

Where is the best place to buy Australian decimal paper notes?

Major auction houses like Noble Numismatics and Downies offer the widest selection of rare material with expert cataloguing. Specialist dealers provide curated stock with return policies. For price comparison and market intelligence, NoteScout tracks current listings and recent sales across multiple platforms.

How should I store my banknote collection?

Store notes flat in acid-free, PVC-free currency sleeves or purpose-built banknote albums. Keep them in a cool, dry environment away from direct sunlight. Handle notes by the edges with clean hands or cotton gloves, and never use adhesive tape, staples, or paper clips on collectible notes.

What makes a star note valuable?

Star notes were printed in small quantities to replace defective notes identified during the production process. Their scarcity, often just a few thousand printed compared to millions for standard runs, makes them significantly more valuable than regular notes of the same denomination and signature combination.

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