The currency of Australia is the Australian dollar (AUD), written with the symbol A$ or simply $, and divided into 100 cents. Issued by the Reserve Bank of Australia, it is the official money used for every transaction across the country, from a coffee in Melbourne to a property sale in Sydney. As of 2026, one US dollar buys roughly 1.55 Australian dollars, though the rate moves daily.
The Australian Dollar at a Glance
The Australian dollar — affectionately called the "Aussie" by traders — is far more than a domestic currency. It ranks as the fifth most traded currency in the world's foreign exchange markets, behind only the US dollar, euro, Japanese yen, and British pound. That outsized importance reflects Australia's role as a major exporter of commodities such as iron ore, coal, and gold.
- Official name: Australian dollar
- ISO code: AUD
- Symbol: A$ or $
- Subunit: cent (100 cents = 1 dollar)
- Central bank: Reserve Bank of Australia (RBA)
Because its value is closely tied to global commodity prices and trade with China, the Aussie is often described as a "commodity currency." When demand for raw materials is strong, the dollar tends to rise; when it weakens, the currency usually softens too.
From Pounds to Dollars: A Short History
Australia did not always use dollars. Until 1966 the country used the Australian pound, divided into shillings and pence in the British style. On 14 February 1966 Australia switched to a decimal system, replacing the pound with the dollar at a rate of two dollars to one pound. The change made everyday arithmetic far simpler, since amounts were now based on hundreds rather than awkward divisions of twelve and twenty.
One curious footnote: the government initially proposed naming the new currency the "royal." Public reaction was so unenthusiastic that the plan was scrapped in favour of the more familiar "dollar." The decision proved popular and the name has been in use ever since.
Banknotes and Coins
Australia issues five banknote denominations — A$5, A$10, A$20, A$50, and A$100 — each in a distinct colour to make them easy to tell apart. Coins come in 5, 10, 20, and 50 cent pieces, plus the A$1 and A$2 coins. The one-cent and two-cent coins were withdrawn in 1992, and cash totals are now rounded to the nearest five cents.
- A$100: green, featuring Dame Nellie Melba and Sir John Monash
- A$50: yellow, featuring David Unaipon and Edith Cowan
- A$20: red, featuring Mary Reibey and John Flynn
- A$10: blue, featuring AB "Banjo" Paterson and Dame Mary Gilmore
- A$5: purple, featuring the reigning monarch and Parliament House
Quirkily, the A$2 coin is smaller than the A$1 coin despite being worth more — a design choice that often surprises first-time visitors.
A World Leader in Banknote Innovation
Australia holds a genuine claim to fame in the world of money: in 1988 it became the first country to issue polymer banknotes, starting with a commemorative A$10 note marking the bicentenary of European settlement. By 1996 every denomination had switched from paper to the durable plastic film. Polymer notes last far longer than paper, resist counterfeiting, and even survive a trip through the washing machine. The technology has since been adopted by more than 50 countries.
The most recent "Next Generation" banknote series went further still, adding raised tactile features so that people who are blind or have low vision can distinguish the denominations by touch — a world-first accessibility innovation. To learn more about the country behind the currency, see our australia country guide.
Using Money in Australia
Australia is one of the most cashless societies on earth. Contactless "tap and go" payments are accepted almost everywhere, from major supermarkets to small market stalls, and many businesses now prefer cards over cash. ATMs are plentiful in cities and towns, and most accept international cards. Travellers should know that Australia is relatively expensive: budgeting at least A$150 to A$250 per day is realistic for food, transport, and activities. Tipping is not expected, though rounding up or leaving a little extra for excellent service is appreciated.
The Australian dollar is also legal tender or the de facto currency in several Pacific nations, including Kiribati, Nauru, and Tuvalu, extending its reach well beyond the Australian mainland.
Frequently Asked Questions
What is the currency of Australia called?
It is the Australian dollar, abbreviated AUD and shown with the symbol A$ or $. Each dollar is divided into 100 cents.
Is the Australian dollar the same as the US dollar?
No. They are separate currencies with different values. As of 2026, one US dollar is worth roughly 1.55 Australian dollars, so the Australian dollar is generally worth less than its American counterpart.
Can I use cash everywhere in Australia?
Yes, cash is still accepted, but it is increasingly unnecessary. Card and contactless payments work almost everywhere, and some businesses have gone entirely cashless.
Why are Australian banknotes made of plastic?
Australia pioneered polymer (plastic) banknotes in 1988 because they last longer, are harder to counterfeit, and stay cleaner than paper. The notes are waterproof and remarkably hard to tear.