The Story of Australian Paper Currency

The story of Australian paper currency is a fascinating one. The first paper currency in Australia was introduced in 1938, with the issue of the first $1 note featuring the portrait of Sir John Monash.

The design of Australian paper currency has undergone many changes over the years. The use of polymer banknotes began in 1988, with the introduction of the $10 note featuring the portrait of Mary Reibey.

In 1992, the Reserve Bank of Australia introduced a new series of banknotes, featuring the portraits of famous Australians. The $100 note, for example, features the portrait of Sir Douglas Nicholls.

Australia's paper currency has a rich history that spans over a century. The first Australian banknotes were produced in 1912, with the first printing works situated near the docks at the western end of Flinders Street in Melbourne.

The first Australian banknote, a ten shillings denomination, was ready for numbering on 1 May 1913. Thomas Samuel Harrison, an Englishman with extensive knowledge and experience in security printing, was appointed Australia's first banknote printer in 1912.

In 1966, Australia converted from the Imperial system to a decimal currency, introducing new state-of-the-art security banknotes to prevent forgery. However, quality forgeries of the $10 note appeared just a year later, prompting the Reserve Bank to seek help from science to overcome the problem.

In 1966, Australia made the switch from the Imperial system to a decimal currency, introducing new security banknotes to prevent forgery.

The first Australian banknotes were only produced a century ago, but currency existed in Australia well before then.

Aboriginal trade was based on exchange and bartering, and when New South Wales was first established, colonists initially used other makeshift currencies such as rum.

The discovery of gold in 1851 led to the minting of Australia's own gold coins and spurred the development of banking.

Commercial banks issued their own notes backed by gold, though people were often wary of them particularly after many banks failed in 1893.

The Queensland Treasury also issued their own legal tender banknotes and prohibited private banks in the state from issuing their own notes.

The passing of the Australian Notes Act of 1910 made it an offence for any bank to circulate banknotes issued by a State and withdrew their status as legal tender.

For the first three years following the Australian Notes Act coming into force, some of the earlier private banknotes were overprinted by the Treasury as a temporary measure.

The first printing works to produce the new banknotes was situated near the docks at the western end of Flinders Street in Melbourne.

In 1912, Thomas Samuel Harrison, an Englishman with extensive knowledge and experience in the field of security printing, was appointed Australia's first banknote printer.

After a busy year acquiring machinery and setting up production facilities, Harrison had the first Australian banknote – of ten shillings denomination – ready for numbering on 1 May 1913.

Dave's team printed $3 and $7 test notes, denominations not encountered in the Australian currency system, on their pilot production line.

These test notes were partly a joke and partly a security measure in case their experimental notes were lost.

The two circles on the $3 and $7 notes indicate the positions where Optical Variable Devices (OVDs) would be inserted and subsequently protected by clear films of plastic on either side.

In 1966, Australia issued its first decimal series of banknotes, with the issue of the $1, $2, $10 and $20 denominations.

The $1 and $2 banknotes ceased to be issued following the introduction of $1 and $2 coins in 1984 and 1988, respectively.

Australia's first decimal banknotes were a significant change from the earlier currency system.

In 1920, the responsibility for banknote issue was transferred from the Commonwealth Treasury to a Board of Directors, with four members appointed by the Commonwealth Government.

The Commonwealth Bank and the Notes Board were formally independent of one another, but the Governor of the Commonwealth Bank was an ex officio member and Chairman.

A larger banknote printer's establishment was commissioned in 1924 in the Melbourne suburb of Fitzroy, to meet the rising public demand for banknotes.

The establishment in Fitzroy was no longer adequate by the early 1970s, and the Reserve Bank began planning the construction of a new banknote printing complex at Craigieburn, 25 kilometres north of Melbourne.

Production of banknotes commenced at the new complex in October 1981, marking a significant change in the banknote printing process.

Note Printing Branch was renamed Note Printing Australia in 1990, and was established as a separately incorporated, wholly owned subsidiary of the Reserve Bank of Australia in 1998.

In 1960, the role of issuing banknotes passed from the Commonwealth Bank to the Reserve Bank of Australia, which assumed responsibility for central banking functions, including banknote issue.

Australia introduced its first decimal series of banknotes in 1966 with the issue of $1, $2, $10, and $20 denominations.

The Reserve Bank and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) jointly developed new banknote technology, leading to the introduction of polymer banknotes.

In 1988, a $10 commemorative banknote was issued to mark Australia's bicentenary, marking a world first in polymer banknote technology.

The $1 banknote was phased out following the introduction of a $1 coin on May 14, 1984, and the $2 banknote was phased out after the introduction of a $2 coin on June 20, 1988.

Australia's banknotes were upgraded to incorporate new security features, starting with the $5 banknote issued on September 1, 2016, followed by the $10 banknote on September 20, 2017.

Polymer banknotes are more durable, cleaner, and hygienic than paper banknotes, and can be recycled into various plastic products at the end of their life.

The Reserve Bank moved to polymer to make Australia's banknotes more secure against counterfeiting, which had increased with modern reprographic equipment becoming more accessible.

The commercialization of Australia's plastic banknote technology was a complex issue, with some senior bank staff wanting to share it at no charge to the world banks. This led to a point of argument with Dave, who ultimately prevailed in the CSIRO position that the technology should be offered at commercial rates.

Today, Securency International Pty Ltd handles the commercialization and export of the technology to 25 countries.

Dave Solomon's contributions to the development of the world's first plastic banknote have been widely recognized. He received the 2008 Innovation Award from the Society of Plastic Engineers (Australia and New Zealand), among other accolades.

Commercialisation can be a complex process, but in some cases, it's driven by a desire to share knowledge and technology with the world.

The commercialisation of the plastic note technology was a point of contention among senior bank staff, with some wanting to share it at no charge to world banks.

This approach was eventually rejected in favor of offering the technology at commercial rates, which is now handled by Securency International Pty Ltd.

Securency International Pty Ltd has successfully commercialised and exported the plastic note technology to 25 countries.

In Australia, a world class invention has gone largely unnoticed - the plastic banknote. The first of its kind, it was a game-changer in the world of currency.

Dave Solomon, the leader of the team responsible for its production, received numerous awards for his work, including the Society of Plastic Engineers (Australia and New Zealand) Innovation Award in 2008.

The team's achievement was recognized globally, with Solomon being elected a Fellow of the Royal Society London (FRS) in 2004.

Solomon also received the Victoria Prize for Science in 2006, and the Clunies Ross National Science and Technology Award in 1994.

Other notable awards include the Australian Bicentennial Science Achievement Award in 1988, and the Ian William Wark Medal and Lecture, Australian Academy of Science, also in 1988.

Solomon was made a Member of the Order of Australia in 1990, for his contributions to science and technology, particularly in the field of Polymer Chemistry.