Omar Khalid
The Australian dollar is unique in that its banknotes are made from a synthetic polymer, giving them a waxy feel. Australia was the first country to introduce polymer banknotes in 1988, with the $10 note being the world's first plastic banknote. The use of polymer for banknotes was the result of a collaboration between the Reserve Bank of Australia and the Commonwealth Scientific and Industrial Research Organisation (CSIRO). The main reasons for the switch to polymer were to increase security features to combat counterfeiting and to increase durability. Polymer banknotes are also more environmentally friendly and cost-effective than paper notes as they last significantly longer.
| Characteristics | Values |
|---|---|
| Security | Polymer banknotes are harder to forge than paper banknotes |
| Polymer banknotes have three levels of security devices | |
| Polymer banknotes have security features not available in paper banknotes, including the use of metameric inks | |
| Durability | Polymer banknotes are more durable than paper banknotes |
| Polymer banknotes are difficult to rip up | |
| Polymer banknotes are hard to set on fire | |
| Polymer banknotes are less likely to carry dirt and disease | |
| Cost-effectiveness | Polymer banknotes are more cost-effective than paper banknotes |
| Polymer banknotes last two to three times longer than paper notes, reducing replacement costs | |
| Polymer banknotes are more environmentally friendly | |
| The savings over paper notes were estimated to be more than $20 million per annum | |
| Aesthetics | Polymer banknotes have a waxy feel |
| Polymer banknotes are colourful |
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What You'll Learn
Polymer banknotes are more durable and secure
The Australian dollar is renowned for its colourful and characterful design, but the currency is also distinctive due to its composition: Australian banknotes are made from polymer plastic. The Reserve Bank of Australia (RBA) and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) first introduced polymer notes in 1988 to commemorate the bicentenary of European settlement in Australia.
Polymer banknotes are more durable than their paper counterparts. They are challenging to rip or set on fire, and they can withstand activities such as surfing or running without disintegrating. This increased durability means that polymer notes last significantly longer than paper notes, reducing environmental impact and replacement costs. The longer lifespan of polymer notes more than offsets the slight increase in production costs.
Polymer banknotes are also more secure. The RBA and CSIRO initially developed polymer notes to combat the counterfeiting of the new decimal currency. Polymer notes incorporate security features not available in paper notes, including intaglio, metal strips, clear panels, holograms, and the use of metameric inks. Polymer notes usually have three levels of security devices: primary features that are easily recognisable by consumers, secondary features detectable by machine, and tertiary features only detectable by the issuing authority.
The security and durability of polymer banknotes have led other countries to follow Australia's lead. By 1998, all Australian banknotes were issued in plastic, and the country became the first to convert fully from paper to polymer currency. As of 2022, Securency International Pty Ltd exports polymer notes to 25 countries, with more than three billion in circulation.
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They are difficult to rip and set on fire
The Australian dollar is made of polymer, a synthetic plastic material. This makes the currency notes highly durable. They are difficult to rip, and setting them on fire is challenging. This durability means that the notes are also long-lasting and cost-effective. You can even put them through the wash by accident, and they will remain intact.
The Reserve Bank of Australia (RBA) introduced plastic notes to combat forgeries of the new decimal currency. The polymer notes also had the added benefit of being more environmentally friendly and less likely to carry dirt and disease. The switch to plastic notes was a massive cultural change for the RBA, and it took a while for the idea to gain acceptance. The new notes were first issued as currency in 1988, and by 1998, all Australian banknotes were made of plastic.
The polymer notes are also more secure, with three levels of security devices. They are difficult to counterfeit due to the use of metameric inks and other security features not available in paper banknotes. The Australian $10 note, for example, had a transparent "window" with a diffractive optically variable device (DOVD) image of Captain James Cook as a security feature. This made it the world's first plastic film note with OVDs.
The durability and security of polymer banknotes have led to their adoption by other countries, such as Canada, Vietnam, and the United Kingdom. Australia's innovative currency has set a new standard for the world, with its bright and characterful notes that are a far cry from the drab greys, blues, and browns of other countries' currencies.
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Polymer notes are harder to forge
The Australian dollar's switch to polymer notes was partly motivated by the desire to combat forgeries of the new decimal currency. Polymer notes are harder to forge than paper notes due to the incorporation of multiple security features. Polymer banknotes usually have three levels of security devices. Primary security devices are easily recognisable by consumers and may include intaglio, metal strips, and clear areas on the banknote. Secondary security devices are detectable by machines, while tertiary security devices may only be detectable by the issuing authority when a banknote is returned.
The first polymer notes issued in Australia included a transparent "window" with a diffractive optically variable device (DOVD) image of Captain James Cook as a security feature. Australian notes were the first in the world to use such features. All current Australian notes also contain microprinting for further security. The longer lifespan of polymer notes compared to paper notes also contributes to their increased resistance to counterfeiting, as they do not need to be replaced as frequently.
The durability of polymer banknotes also makes them less likely to carry dirt and disease, further reducing the likelihood of contamination and forgery. The use of polymer notes during the COVID-19 pandemic in the Philippines was partly attributed to their sanitization advantages over paper notes. The ability to sanitise polymer notes without significant damage also contributes to their overall durability and resistance to counterfeiting.
The commercialisation of polymer note technology has been a point of contention, with some senior bank staff advocating for sharing the technology with other world banks at no charge to combat forgeries. However, the decision was made to offer the technology at commercial rates, with Securency International Pty Ltd handling the commercialisation and export to 25 countries.
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Plastic notes are more cost-effective
The Australian dollar's switch to plastic notes has proven to be more cost-effective for several reasons. Firstly, polymer notes are significantly more durable than their paper counterparts. They are challenging to rip and require a significant amount of effort to set on fire. This means that they can withstand harsh conditions, such as being put through the wash, or being carried during a run or a surf. This increased durability means that polymer notes do not need to be replaced as frequently as paper notes, reducing replacement costs. The $10 bill in the US, for instance, needs to be replaced every four and a half years.
Polymer notes are also more secure, making them less susceptible to counterfeiting. They incorporate security features not available in paper banknotes, such as holograms, see-through panels, and the use of metameric inks. These security features make polymer notes more difficult and less attractive for counterfeiters to replicate, further reducing the costs associated with counterfeiting.
The longer lifespan of polymer notes also contributes to their cost-effectiveness. Polymer banknotes tend to last two to three times longer than paper notes. This increased longevity results in a decreased environmental impact and reduced production and replacement costs. The savings over paper notes for Australia were estimated to be more than $20 million per year.
The commercialisation of the plastic note technology has also brought in revenue for Australia. Securency International Pty Ltd, a joint venture between the Reserve Bank of Australia and Innovia Films, handles the commercialisation and export of the technology. By 2009, Securency was exporting to 25 countries, with over three billion polymer notes in circulation.
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They are more hygienic than paper notes
The Australian dollar is renowned for its colourful and characterful design, but the choice to use polymer for the banknotes has practical benefits, too. The Reserve Bank of Australia first issued polymer notes in 1988, and by 1998, all Australian banknotes were made of plastic.
Polymer notes are more hygienic than paper notes for several reasons. Firstly, they are less likely to carry dirt and disease. This is especially important in a healthcare context, as they can be sanitised with less damage than paper notes. Polymer notes are also more durable than paper notes, which means they are less likely to become damaged by water, sweat, or other liquids, reducing the risk of disintegration and the potential for germ transfer.
The durability of polymer notes also has cost benefits. They last significantly longer than paper notes, which means they do not need to be replaced as often, reducing the environmental impact and the cost of production. The longer life of polymer notes was found to more than offset the slight increase in production costs. Polymer notes are also harder to rip and less susceptible to damage from fire.
The switch to polymer notes in Australia was primarily a response to counterfeiting, with the new notes offering increased security features. However, the additional benefits of polymer notes, including their durability and hygiene advantages, have made them an attractive option for other countries, too.
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Frequently asked questions
Polymer banknotes were first introduced in Australia to increase security and reduce counterfeiting. The plastic notes included a see-through panel and a hologram, making them harder to forge.
The first polymer banknote was issued in 1988 to commemorate the bicentenary of European settlement in Australia.
Polymer banknotes are more durable than paper notes and are difficult to tear or set on fire. They are also more secure and less susceptible to dirt and disease.
Yes, several countries have adopted the use of polymer banknotes, including Canada, Vietnam, New Zealand, and the United Kingdom.
