The government of Australia has said that the 5-cent coin is “under constant review,” which means that it may soon be gone. Every year, fewer and fewer people want to carry cash because there are more ways to pay without it.
Federal Treasurer Jim Chalmers said that getting rid of the 5-cent coin is a possibility. This is part of a larger plan to institute a “cash mandate,” which would require stores to accept cash for basic purchases like gas and groceries.
Coin denomination under continuous review
As you may know, Chalmers said on Monday, “This is an issue that Andrew Leigh often considers, as he is responsible for the Mint and currency regulations within our team.”
Chalmers went on to say, “Andrew Leigh thinks about this a lot, especially when it comes to the right denominations.” Obviously, these change over time, and we review them all the time.
- 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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Exciting Coin Discoveries and Economic Discussions in Australia
The Future of the 5-Cent
Ross MacDiarmid, who used to be the CEO of the Royal Australian Mint, said in 2020 that the 5-cent coin might “cease to be used” in five to ten years. As the start of that timeframe draws near, people are looking at the future of this small but important 5-cent piece.
Andrew Leigh, Assistant Minister for Competition, Charities, and Treasury, says that there are “no plans to get rid of the 5-cent coin at this time.” Yahoo Finance says that a Mint representative also confirmed that there are “no plans” to stop issuing the 5 cents or take them out of circulation. It was made clear that any final decision would have to come from the government.
- No immediate plans to end the production of cash denominations.
- The government holds the key to any future changes.
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