Australia & New Zealand Paper Money

Australian paper money was a regional matter prior to the unification of Australia. Queensland and New South Wales issued their own series of treasury notes and banknotes for legal tender, with privately-held banks supplementing with their own banknotes in some areas. This tradition proved hard to change. The Commonwealth government, after unification, had to pass a law specifically prohibiting State notes. In 1910, Australia officially moved to the pound until eventually settling on the dollar in 1966.

Amid rising concerns of counterfeiting, the Reserve Bank of Australia spearheaded research into polymer banknotes with the intent to replace traditional paper blends. In 1988, the first plastic banknotes were printed and distributed in Australia. While the initial run had several relatively minor issues, the bank moved ahead with production. Australia is currently among the nations who use entirely polymer banknotes. Neighboring New Zealand is also on this list, moving to polymer notes in 1999.

New Zealand followed much the same trajectory as its neighbor, although New Zealand adopted the pound in 1840, seventy years prior to Australia. Both moved to the dollar around the same time with New Zealand making the move in 1967. As time passed, New Zealand discontinued the $1 and $2 bills, opting to represent these values in coins instead.

Quick Facts

• The Empire of Japan printed money with the Australian pound, intending to provide money for occupying military forces. It was never used in Australia
• Sir Edmund Hillary, a New Zealander who was the first to reach the summit of Mount Everest, was featured prominently on the $5 note while he was still alive. Few people are displayed on currency while living
• The only known surviving 1817 Australian banknote sold at auction in 2014 for $334,000