Australian coinage timeline

The iconic Australian Holey Dollar
Over-stamped Spanish Real of Charles III – 1773,
Overstamped George III – 1813
Courtesy Wikimedia Commons – the State Library of New South Wales
Holey Dollar
The Australian holey dollar, minted in 1813, represents a significant chapter in the history of Australian currency. As the first official currency of New South Wales, it emerged out of the necessity to establish a reliable medium of exchange in a fledgling colony. Prior to its introduction, the colony relied on foreign currencies, especially the Spanish dollar, which was prevalent due to its wide circulation.
The holey dollar was created from Spanish dollars (pieces of eight), which were cut into two pieces. The outer ring, known as the holey dollar, retained its value of five shillings, while the inner core, known as the dump, was valued at threepence. This innovative method allowed authorities to create a local currency using existing foreign coins, ensuring a quick and efficient response to the colony’s economic needs. Governor Lachlan Macquarie, seeking to stabilize the economy and promote commerce, played a pivotal role in this initiative.
The design of the holey dollar featured the inscription “New South Wales” and the date of minting, along with a hole in the center. This distinctive appearance not only facilitated its recognition but also underscored the unique identity of the Australian colony. Although its use was relatively short-lived, lasting until the introduction of sterling coins in 1825, the holey dollar laid the groundwork for future Australian currency systems.
Today, holey dollars are highly prized by collectors and historians, symbolizing early Australian ingenuity and the evolution of its monetary system. They serve as tangible reminders of the challenges faced by early settlers and the economic developments that shaped the nation. The legacy of the holey dollar continues to resonate within Australia’s rich financial history (Sider July 2024).
See the major article on Australian coins for more information.
Introduction – Australian Coinage Timeline
The history of Australian coinage is a fascinating and diverse tale that spans over two centuries. From the early days of British colonization to the modern era of decimalization and innovation, Australian coins have evolved to reflect the changing face of the nation. This account aims to provide a comprehensive overview of the key milestones and developments in the history of Australian coinage.
Early Colonial Coinage (1788-1828) The history of Australian coinage begins with the arrival of the First Fleet in 1788, which brought British convicts and settlers to establish a new colony in Australia. In the early years of colonization, coins were in short supply, and a barter economy based on goods and commodities predominated. However, as the population grew and economic activity expanded, the need for a formal currency system became increasingly apparent.
The first coins to circulate in the Australian colonies were Spanish dollars and other foreign coins brought in by traders and settlers. These coins were often of varying weights and purities, leading to issues of counterfeiting and fraud. To address these problems, Governor Macquarie of New South Wales established the first official coins in Australia in 1813 – the “Holey Dollar” and the “Dump.” The Holey Dollar was created by punching a hole in the center of a Spanish dollar, while the Dump was made from the circular piece that was punched out. These coins were over-stamped with the words “New South Wales” and their respective denominations.
British Imperial Coinage (1825-1910) In 1825, the British government introduced a new currency system in Australia based on the British Imperial system of pounds, shillings, and pence. British coins began to circulate alongside the colonial coins, which continued to be used in parallel. The Sydney Mint was established in 1855, becoming the first official mint in Australia to produce coins for circulation. The first coins minted at the Sydney Mint included sovereigns, half-sovereigns, and pennies.
The discovery of gold in Australia in the mid-19th century led to a gold rush that greatly increased the demand for coinage. Gold coins were minted at the various branches of the Royal Mint in Sydney, Melbourne, and Perth to accommodate the growing population of prospectors and settlers. The gold sovereign became the standard unit of currency in Australia, reflecting the country’s newfound wealth and prosperity.
Federation and Decimalization (1901-1966) With the establishment of the Commonwealth of Australia in 1901, discussions began on the need for a unified currency system for the new nation. In 1910, the Australian Pound was introduced as the official currency, replacing the various state currencies that had been in circulation. The Australian Pound was pegged to the British Pound and was divided into 20 shillings, each consisting of 12 pence.
In the early 1960s, the Australian government decided to transition to a decimal currency system to simplify transactions and align with international standards. After an extensive public education campaign, Decimal Day was introduced on February 14, 1966, when Australia transitioned to the new system of dollars and cents. The Australian Dollar was introduced at a rate of 2 dollars to 1 pound, and new coins and banknotes were issued to reflect the new denomination.
Modern Minting and Innovation (1966-Present) Since the introduction of decimal currency, the Royal Australian Mint and the Perth Mint have been responsible for producing Australia’s coins. The Royal Australian Mint, located in Canberra, was established in 1965 to produce circulating coins for the nation. The Perth Mint, located in Western Australia, has been involved in producing commemorative and investment coins, including gold and silver bullion coins.
Over the years, Australian coinage has featured a wide range of designs reflecting the nation’s history, culture, and natural environment. Commemorative coins have been issued to mark significant events and anniversaries, such as the Sydney Olympics in 2000 and the anniversary of the Anzac legend. Indigenous themes have also been incorporated into coin designs to celebrate Australia’s Aboriginal and Torres Strait Islander heritage.
In recent years, the Royal Australian Mint has introduced innovative technologies and security features to enhance the durability and anti-counterfeiting measures of Australian coins. The introduction of colored coins, holographic features, and micro-engraving has added a new dimension to the design and production of coins, making them both visually appealing and technologically advanced.
Looking ahead, the future of Australian coinage is likely to see further advancements in design, security, and sustainability. With the rise of digital payments and cashless transactions, the role of physical coins may evolve, but their enduring presence in the monetary system is assured. Australian coins will continue to be a tangible symbol of the nation’s history and identity, reflecting the rich tapestry of cultures and stories that make up the fabric of modern Australia.
Tthe history of Australian coinage is a testament to the resilience and adaptability of the nation’s currency system. From the early days of colonial barter to the modern era of high-tech minting, Australian coins have played a central role in shaping the country’s economic and cultural landscape. As new challenges and opportunities emerge, Australian coinage will continue to evolve, reflecting the spirit of innovation and creativity that defines the nation (AI Sider July 2024).

The massive twopenny ‘cartwheel’ coin dated 1797
Britannia seated and holding an olive branch
Twopenny Cartwheel – Australian coinage timeline
The Australian twopenny cartwheel copper coin, minted in 1797, is a significant numismatic artifact that serves as a historical testament to early colonial life in Australia and the evolution of its currency system. Although primarily associated with the British broader imperial context, this coin bears importance due to its usage in the young Australian colonies that were establishing their economic foundation in the late 18th century.
The coin, a two-penny piece, features a distinctive design, characterized by its large size and weight, resembling a cartwheel, which is indicative of the name by which it is commonly known. Struck at the Soho Mint, Birmingham, England, by the renowned industrialist Matthew Boulton, the twopenny coin was produced using advanced minting techniques of the era. Its dimensions—approximately 38 millimeters in diameter and 1.2 millimeters in thickness—further solidify its identifying characteristics.
The obverse of the coin presents a left-facing profile of King George III, surrounded by the inscription “GEORGIVS III D G M B F ET H REX,” which translates to “George III, by the Grace of God, King of Britain, France, and Ireland.” This portrayal encapsulates not only the regal authority of the British crown but also the global reach of its influence at the time. The reverse side features a crowned figure of a lion standing upon a shield, emblematically representing Britain’s imperial power and territorial ambitions. The inscription reads “TWO PENCE,” accompanied by the date “1797,” reflecting the coin’s denomination and year of minting.
The context of the twopenny cartwheel coin’s introduction into Australia cannot be overstated. During the late 18th century, Australia was undergoing significant transformations, particularly with the establishment of the first European settlements, which commenced with the arrival of the First Fleet in 1788. The still-developing economy found a need for effective currency, and British coins, including the cartwheel twopenny, began circulating in the colonies. However, the limited supply of hard currency led to a variety of trade and barter systems, which would eventually pave the way for an officially sanctioned colonial currency.
Distinctively, the twopenny cartwheel reached a peak of significance due to its adaptability in trade and its general acceptance amongst colonial inhabitants. The weightiness of the coin, while initially prohibitive for some forms of exchange, also conferred a sense of fiscal solidity to transactions that would have otherwise relied on less formal mediums.
In the broader historical narrative, the evolution of currency in Australia set the stage for the development of a national identity and economic independence that would emerge in the subsequent decades. The twopenny coin’s obsolescence eventually came with the introduction of more standardized coinage, yet it remains a cherished relic of numismatic history, celebrated by collectors and historians alike.
In summary, the Australian twopenny cartwheel copper coin of 1797 encapsulates not only the artistry of its time but also reflects the socio-economic landscape of early Australia as it navigated its position within the British Empire. As such, it serves as an important cultural artifact that continues to intrigue those interested in the colonial history of Australia and the evolution of its numismatic practices (AI Sider August 2024).
Australian coinage timeline
1788 – Settlement
1790 – HMS Kitty arrives with 4500 Spanish dollars tobe used at Govr Phillip’s discretion
1791 – Govr Philip fixes the Spanish dollar at 5 shillings
1797 – ‘Cartwheel’ British penny (1 oz) as the first official British coinage (date of arrival of twopence (2 oz) is uncertain)
1800 – Govr King, by Proclamation on 19 Nov. fixes those coins that may be used as currency
1810 – ‘Rum currency’ forbidden by Macquarie
1812 – The ship Samarang arrives at Port Jackson with 40,000 Spanish silver dollars which were purchased by Governor Macquarie for four shillings and nine pence each. To keep these within Australia he cut holes in the middle (they became known as holey dollars), restamped them for George III of England, and fixed their value at five shillings, the ‘dump’ from the middle valued at 1 shilling and threepence
1813 – Holey dollars and dumps declared legal currency on 30 Sept.
1814 – Holey dollars and dumps released into circulation
1817 – Australia’s first bank, the Bank of New South Wales, opened in Macquarie Place, Sydney, the premises leased from the emancipist businesswoman Mary Reibey who is depicted on the $20 banknote
1825 – The Currency Act of 28 September 1824 was the first act passed by the Parliament of New South Wales. It formalized British sterling as the official currency of New South Wales, ‘pounds, shillings and pence’ remaining Australian currency denominations until the introduction of decimal currency in February 1966
1901 – Australian Federation resulted in the constitutional power to produce coins passing from the state to the commonwealth and coins continued to be minted
1910 – Australian coinage introduced as pounds shillings and pence, but initially as silver florins, shillings, sixpences, and threepences
1966 – Decimal coinage introduced as dollars and cents – the first issue being of 1, 2, 5, 10, 20, and 50 cent coins
1984 – First issue of $1 coins
1988 – First issue of $2 coins
. . . 20 July 2024 – substantial re-edit