Australians might soon bid farewell to the 5-cent coin as the government has announced that this small denomination is “under constant review.” With the rise of cashless payment methods, the demand for cash continues to decline each year.
Eliminating the 5-cent coin is a possibility said the Federal Treasurer Jim Chalmers. This comes as part of a broader initiative to introduce a “cash mandate,” which would require businesses to accept cash for essential purchases such as groceries and petrol.
Coin denomination under continuous review
For your information, “This is an issue that Andrew Leigh frequently considers, as he is responsible for the Mint and currency regulations within our team,” Chalmers stated on Monday.
Chalmers further explained, “Andrew Leigh thinks about this quite a bit, especially regarding the appropriate denominations. Naturally, these evolve over time, and we keep them under constant review.”
- Impact on daily transactions
- Adapting to a digital economy
- Preserving essential cash payments
As Australia moves towards a more digital economy, the role of cash, particularly the 5-cent coin, is being reevaluated to ensure it aligns with current economic practices.
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The Future of the 5-Cent
Ross MacDiarmid, the former chief executive of the Royal Australian Mint, predicted in 2020 that the 5-cent coin might “cease to be used” within five to ten years. As the opening of that timeframe approaches, the future of this small but significant 5-cent piece is under scrutiny.
However, according to Assistant Minister for Competition, Charities, and Treasury, Andrew Leigh, there is currently “no intention of abolishing the 5-cent coin.” According to Yahoo Finance, a Mint spokesperson also confirmed that there are “no plans” to discontinue or remove the 5 cents from circulation. They emphasized that any final decision would ultimately rest with the government.
- No immediate plans to end the production of cash denominations.
- The government holds the key to any future changes.