2016-06-20 Mon

On this day, 28 years ago, the original $2 Australian banknote was replaced by a coin of the same denomination. The new coin which exists even today features an Aboriginal elder with the southern cross and a native grass tree in the background.

Life of paper currency was estimated to be 3 to 6 months due to which it was soon replaced. Similarly, the $2 was very popular, reducing its lifespan to 6 months. Coins on the other hand had the potential to last for 30 years. Considering this, even though the cost of producing coins was slightly more than that of the note, it was more cost-effective as per officials. Since 160 million were minted in 1988 they are sometimes still found in circulation. The lifespan of a $5 note is approximately two years whereas that of a $50 note is 11 years as polymer notes last longer than paper money.

On 14th February 1966, the decimal system was introduced in Australia and the dollars replaced the pounds. The reverse of the $2 note featured a portrait of William Farrer who was known as the Father of the Australian wheat industry for designing a productive strain of wheat in 1900s. The obverse featured John Macarthur who revolutionised the Australian wool industry.

Help from many designers were sought to come up with the new design of the coin. The final design was inspired from a 1950 Australian stamp. The obverse featured a portrait of Queen Elizabeth.

The Royal Australian Mint has been releasing commemorative $2 coins with new reverse designs for the last two years.