2016-05-16 Mon

After the official budget announcement in Australia on 3rd May, the production of the country’s smallest denomination five-cent coins will come to a halt by the Royal Australian Mint.

The same was the case with the one- and two-cent coins that was eliminated slowly in 1990s. Production of the coins stopped in 1990 and they were withdrawn completely in 1992. Going with the trend, the five-cent coins that were introduced on 14th February, 1966, could be withdrawn in 2018. Officials state that inflation is the major reason for taking this decision. Also, the cost of producing a 5-cent coin was 6 cents. Increasing popularity of cashless transaction has led to halving the demand for five-cent coin.

Rounding up or down of prices could be one major issue that could affect the general public due to this rollback.