A History of Australia Told Through Its Banknotes
Australian banknotes are more than pocket money. They record who and what the country has valued at each stage of its development. From improvised colonial IOUs to the world's most advanced polymer currency, the story of Australian banknotes traces the nation's journey through colonisation, Federation, two world wars, postwar prosperity, and ongoing conversations about whose stories belong on the money in everyone's wallet.
The Colonial Era: Improvisation and Necessity (1788 to 1910)
Rum, Barter, and Makeshift Money
When the First Fleet landed at Sydney Cove in 1788, there was no formal currency system. The earliest economic exchanges relied on barter, and rum quickly emerged as a de facto medium of exchange. This system became so entrenched that it contributed to the Rum Rebellion of 1808, when colonial merchants and military officers overthrew Governor William Bligh partly over disputes about the liquor trade.
British coins circulated in limited quantities. They were supplemented by Spanish dollars, Dutch guilders, and whatever foreign currency arrived on trading ships. Governor Lachlan Macquarie attempted to address the chronic coin shortage in 1813 by punching the centres out of Spanish dollars, creating the "holey dollars" and "dumps."
Commercial Bank Notes
As the colonies developed, private banks began issuing their own banknotes. Institutions such as the Bank of New South Wales (established 1817), the Bank of Van Diemen's Land, and the Commercial Bank of Australia each produced notes redeemable at their respective branches. These notes varied widely in design and quality. Their acceptance depended on the perceived soundness of the issuing bank.
The earliest surviving Australian banknote, a colonial-era note dating from 1817, sold at auction for $334,000 in 2014. That price reflects both its rarity and its significance as one of the earliest financial documents of European Australia.
This era of private banking currency was chaotic but formative. It established the principle that currency was a matter of trust.
Federation and the Birth of National Currency (1901 to 1920)
One Nation, One Currency
When the six colonies federated on 1 January 1901, the new Commonwealth inherited a patchwork of colonial and commercial currencies. One of the early acts of parliament was to bring order to this monetary landscape. The Australian Notes Act 1910 gave the Commonwealth exclusive authority to issue banknotes, making it illegal for commercial banks to continue issuing their own paper money.
As a transitional measure, the Commonwealth superscribed existing commercial bank notes, physically overprinting them with Commonwealth authorisation text, while purpose-built Commonwealth notes were prepared.
The First Commonwealth Banknotes: 1913
On 1 May 1913, Australia's first nationally printed banknotes were ready for numbering. These ten-shilling notes, signed by James Collins and George Allen, were produced at a printing works near the docks on Flinders Street in Melbourne. Thomas Samuel Harrison, Australia's first official banknote printer, oversaw the process.
The initial series spanned denominations from ten shillings to the higher values. For the first time, every Australian carried the same notes regardless of which state they lived in. The notes bore images of British royalty and pastoral scenes, reflecting the young nation's dual identity: loyal to the Crown yet defined by its own landscape.
Today, the 1913 Collins/Allen series are among the most valuable items in Australian numismatics. Individual notes sell for hundreds of thousands of dollars. The complete specimen set reportedly traded for approximately $5.5 million.
War and Depression: Currency Under Pressure (1914 to 1945)
The First World War
The outbreak of war in 1914 placed immediate pressure on Australia's monetary system. The government needed to fund a war effort on the other side of the world, and banknote production was scaled up. Notes from this era, particularly those bearing the Cerutty/Collins and subsequent wartime signature combinations, were produced as the nation mobilised its economic resources.
The war also prompted the introduction of higher denominations, including the £50 and £100, to facilitate large-scale commercial and government transactions. These were produced in very limited quantities and are now among the rarest items in Australian currency history.
The Great Depression
The 1930s brought economic devastation. Unemployment soared above 30 per cent in some areas, and the pound came under severe pressure. The banknotes of this period bear signatures such as Riddle/Heathershaw and Riddle/Sheehan. They are collected by those interested in the material culture of economic hardship.
The Second World War
The Second World War (1939 to 1945) placed renewed demands on currency production. Notes bearing the Sheehan/McFarlane and Armitage/McFarlane signatures were produced in large quantities. Paper quality sometimes suffered due to supply shortages, and some collectors specialise in notes from this period, seeking out variations in paper, printing, and colour that reflect wartime production constraints.
The war also brought American troops, and American currency, to Australia in large numbers, particularly after the fall of Singapore in 1942.
Post-War Prosperity and the Road to Decimal (1945 to 1966)
The Coombs Era
The post-war period was dominated by H.C. "Nugget" Coombs. As Governor of the Commonwealth Bank and later the first Governor of the newly established Reserve Bank of Australia (created in 1960), Coombs oversaw a period of sustained economic growth and currency stability.
His signature appears on banknotes spanning nearly two decades, first paired with Watt, then with Wilson. The Coombs/Wilson signature combination, the last of the pre-decimal era, is the most accessible entry point for collectors interested in pound-era notes.
The post-war notes featured Australian wildlife, pastoral landscapes, and portraits of the reigning monarch. They projected an image of stability and prosperity during a period when the country was building new suburbs, welcoming migrants from Europe, and planning its future.
The Decimal Decision
By the early 1960s, Australia's pounds-shillings-pence system was seen as an impediment to modern commerce. The Decimal Currency Committee recommended adoption of a dollar-and-cents system. After a public debate about what to name the new currency (alternatives included the "royal" and the "austral"), the Australian dollar was adopted.
On 14 February 1966, known informally as "C-Day," the Australian dollar replaced the pound at a rate of two dollars to one pound. It was one of the largest peacetime logistical exercises in Australian history, requiring the simultaneous introduction of new notes and coins while withdrawing the entire existing currency.
The Decimal Paper Era: A New Australia on New Notes (1966 to 1988)
Designing a New Identity
The first decimal paper notes were designed by Gordon Andrews, who had won a design competition held by the RBA. The new notes featured prominent Australians rather than solely British royalty, signalling a shift in national self-image.
The $1 note featured Queen Elizabeth II on the front. The reverse incorporated designs adapted from a bark painting by Yolngu artist David Malangi Daymirringu and examples of Aboriginal rock art. It was one of the first times Indigenous culture was represented on Australian currency, though the artwork was used without Malangi's initial knowledge or consent. He was later compensated and presented with a special medal by the RBA.
The $2 featured John Macarthur and William Farrer. The $5 featured Sir Joseph Banks and Caroline Chisholm. The $10 featured Francis Greenway and Henry Lawson. The $20 featured Sir Charles Kingsford Smith and Lawrence Hargrave.
These choices reflected a particular vision of Australia: scientific, pioneering, and literary. They also reflected the biases of the era. The portrait subjects were overwhelmingly white and male, a point that would be increasingly scrutinised in later decades.
The $50 and $100
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. These higher denominations reflected both inflationary pressures and the growing sophistication of the Australian economy.
The Polymer Revolution: Australian Ingenuity (1988 to Present)
The 1988 Bicentennial $10
The RBA released the world's first polymer banknote on 26 January 1988. It was a commemorative $10 note marking the bicentenary. Developed over twenty years through a partnership between the RBA and CSIRO, the note demonstrated that plastic could replace paper as a banknote substrate. It offered improved durability, security, and cost-effectiveness.
The bicentennial $10 featured imagery marking 200 years of European settlement, including representations of Aboriginal culture and colonial history. Its transparent window and optically variable device had not been seen before on a circulating banknote.
The First Polymer Series (1992 to 1996)
Following the 1988 trial, the RBA committed to converting the entire banknote range to polymer. The first polymer series was issued progressively from 1992 to 1996 and introduced new portrait subjects. The $5 retained Queen Elizabeth II but replaced Sir Joseph Banks with an image of Parliament House. The $10 featured poets AB "Banjo" Paterson and Dame Mary Gilmore in place of Francis Greenway and Henry Lawson. The $20 replaced Kingsford Smith and Hargrave with convict-turned-businesswoman Mary Reibey and Reverend John Flynn, founder of the Royal Flying Doctor Service. The $50 replaced Florey and Clunies Ross with inventor David Unaipon and politician Edith Cowan. The $100 replaced Mawson and Tebbutt with opera singer Dame Nellie Melba and military leader Sir John Monash.
These new selections broadened the range of Australian achievement represented on the currency. They introduced women, Indigenous Australians, and cultural figures alongside the scientists and explorers of the paper era.
By 1998, all Australian banknotes were polymer. Australia became the first country to achieve a complete polymer currency. The technology has since been exported to more than 50 countries.
The Next Generation Series (2016 to 2020)
The Next Generation banknote series, released between 2016 and 2020, was the most significant redesign since decimalisation. Each note features a different species of native Australian wattle and a native bird, alongside the existing portrait subjects. The series incorporated a tactile feature, consisting of raised bumps, to help vision-impaired Australians distinguish between denominations. This was a world-first accessibility innovation.
The series rolled out as follows: $5 (September 2016), $10 (September 2017), $50 (October 2018), $20 (October 2019), and $100 (October 2020).
Indigenous Representation: A Continuing Conversation
David Unaipon and the $50
David Unaipon, a Ngarrindjeri man, inventor, author, and preacher, became the first named Indigenous Australian to be featured as a portrait subject on a circulating banknote when he appeared on the $50 note in 1995. While Indigenous art by David Malangi had appeared on the reverse of the $1 note from 1966 (initially without the artist's knowledge or consent), Unaipon's inclusion as a full portrait subject was a landmark moment. It acknowledged an individual Indigenous Australian's contribution to national life on the country's most widely circulated high-denomination note.
The New $5 Note
In 2023, the Reserve Bank announced that the new $5 note would feature a design honouring First Nations culture, replacing the portrait of Queen Elizabeth II following her passing in September 2022. The decision was made in consultation with First Nations communities.
The new $5 is expected to feature Indigenous artwork and design elements developed in partnership with Aboriginal and Torres Strait Islander communities. It reflects a broader conversation about whose stories Australian currency should tell.
What Banknotes Reveal About National Values
The Politics of Portraiture
The figures chosen for Australian banknotes tell us as much about the era of selection as about the individuals depicted. The early pound notes featured British royalty almost exclusively. The decimal paper notes introduced Australian figures but favoured explorers, scientists, and aviators. The polymer series broadened representation to include social reformers (Mary Reibey, Edith Cowan), Indigenous Australians (David Unaipon), beloved literary figures (Banjo Paterson, Dame Mary Gilmore), and pioneers of public service (Reverend John Flynn, Sir John Monash).
Design as National Narrative
Beyond portraiture, the background imagery, colour palettes, and symbolic elements of Australian banknotes function as a compressed national narrative. The progression from pastoral landscapes and British heraldry to native flora and fauna, Indigenous art motifs, and technological innovation charts the country's development.
Security as Innovation Story
Australia's leadership in banknote security, from the world's first polymer note to the optically variable devices and tactile features of the Next Generation series, reflects a national capacity for practical innovation. The RBA and CSIRO polymer story is an Australian success narrative in the same vein as the Cochlear implant or the black box flight recorder: technology developed and commercialised at home before being adopted internationally.
A Timeline of Australian Banknote History
| Year | Event |
|---|---|
| 1788 | First Fleet arrives; no formal currency; rum and barter economy |
| 1813 | Governor Macquarie creates holey dollars and dumps from Spanish dollars |
| 1817 | Bank of New South Wales established; commercial banks begin issuing notes |
| 1901 | Federation of Australia |
| 1910 | Australian Notes Act gives Commonwealth exclusive note-issuing authority |
| 1913 | First Commonwealth banknotes (Collins/Allen ten shillings) printed |
| 1914 to 1918 | First World War: expanded note production; high denominations introduced |
| 1930s | Great Depression: currency under pressure |
| 1939 to 1945 | Second World War: wartime note production |
| 1960 | Reserve Bank of Australia established, taking over note-issuing function |
| 1966 | Decimal currency introduced; Australian dollar replaces the pound |
| 1968 | RBA and CSIRO "Bank Note" project begins |
| 1988 | World's first polymer banknote released (bicentennial $10) |
| 1992 to 1996 | First polymer series progressively issued |
| 1998 | Australia becomes first country with fully polymer currency |
| 2016 to 2020 | Next Generation banknote series with enhanced security and accessibility |
| 2023 | Announcement: new $5 to feature Indigenous design, replacing British monarch |
Exploring Australian Banknote History as a Collector
For those interested in exploring this history through collecting, the range of Australian banknotes offers something for every budget and interest. Whether you are drawn to the artistry of Gordon Andrews' decimal designs, the historical weight of a 1913 Collins/Allen ten-shilling note, or the technology of the latest Next Generation polymer notes, each banknote connects you to a specific moment in Australia's story.
NoteScout tracks current values, recent sales, and prices across the Australian banknote market. Whether you are starting a collection or building on an existing one, having access to accurate market data helps you collect with confidence.
Frequently Asked Questions
When were the first Australian banknotes issued?
The first purpose-printed Commonwealth of Australia banknotes were produced in 1913, signed by James Collins and George Allen. The Commonwealth had issued superscribed (overprinted) commercial bank notes from 1910 as a transitional measure following the Australian Notes Act.
Why did Australia switch from pounds to dollars?
Australia switched from the pound system to decimal currency on 14 February 1966 to simplify everyday transactions. The pounds-shillings-pence system, with 12 pence to a shilling and 20 shillings to a pound, was considered cumbersome. The decimal system, with 100 cents to the dollar, was far simpler.
When did Australia start using polymer banknotes?
Australia released the world's first polymer banknote on 26 January 1988. It was a commemorative $10 note marking the bicentenary. The full polymer series was issued between 1992 and 1996. By 1998, Australia became the first country to operate an entirely polymer banknote system.
Which Indigenous Australians have appeared on banknotes?
David Unaipon, a Ngarrindjeri inventor and author, became the first named Indigenous Australian featured as a portrait subject on a circulating banknote when he appeared on the $50 note in 1995. The new $5 note, announced in 2023, will feature a design honouring First Nations culture developed in consultation with Aboriginal and Torres Strait Islander communities.
What is the oldest surviving Australian banknote?
The oldest known surviving Australian banknote dates from 1817, from the colonial era of commercial banking. It sold at auction through Noble Numismatics in 2014 for $334,000.
How did World War II affect Australian banknotes?
The Second World War required increased banknote production to fund military operations and sustain the domestic economy. Paper quality sometimes varied due to wartime supply constraints. Notes from this period, bearing the Sheehan/McFarlane and Armitage/McFarlane signatures, are collected for their historical interest and distinct production characteristics.
Are Australian banknotes good investments?
Rare Australian banknotes in high grades have shown consistent long-term appreciation, driven by fixed supply and growing collector demand. However, they should be approached as collectibles rather than financial instruments, as returns are not guaranteed and liquidity varies. Tracking market values through tools like NoteScout can help collectors make informed decisions.
External links used:
- Reserve Bank of Australia: History of Banknotes
- CSIROpedia: Polymer Banknotes
- RBA Museum: Next Generation Banknotes 2016 to 2020
- RBA Museum: First Nations Peoples and Australian Banknotes
- National Museum of Australia: Defining Moments, Decimal Currency
Internal links used: