On 14 February 1966, Australia underwent a significant transformation in its monetary system, transitioning from the imperial currency of pounds, shillings, and pence to a decimal currency—introducing the Australian dollar and cent. This day, known as 'C-Day' (Conversion Day), marked the culmination of extensive planning, public education, and logistical coordination.
The Rationale Behind Decimalisation
Practical economic considerations drove the move to decimal currency. The imperial system was cumbersome and complicated financial transactions with its divisions of 20 shillings to a pound and 12 pence to a shilling. Decimalisation simplified calculations, aligning Australia with international trading partners who had already adopted decimal systems. This change facilitated more straightforward trade and reflected Australia's growing self-assurance and forward-thinking attitude.
Preparation and Implementation
In 1963, the Australian government decided to decimalise the currency, setting the changeover date for February 1966. The major currency unit, named the dollar, was established as equivalent to ten shillings, and the minor unit, the cent, was set as one-hundredth of a dollar. The Decimal Currency Board was established to oversee the extensive preparations required for this transition.
A significant aspect of the preparation involved designing new coins and banknotes that would embody Australia's unique identity. The new decimal coins, designed by Stuart Devlin, featured images of Queen Elizabeth II on the obverse side and depictions of Australia's distinctive fauna on the reverse. The Reserve Bank of Australia oversaw the design and production of the new decimal banknotes, with concept designs by Gordon Andrews. By 1965, the Bank's Note Printing Branch had produced almost 153 million new decimal currency banknotes in denominations of $1, $2, $10, and $20.
Public Education Campaign
To ensure a smooth transition, an extensive public education campaign was launched. A key figure in this campaign was 'Dollar Bill,' an animated character who appeared in advertisements to explain the new currency and assist Australians in adjusting to the change. This campaign is considered one of the most successful public awareness initiatives in Australia's history.
The Transition
On 'C-Day,' Australians embraced the new currency with enthusiasm. The Sydney Morning Herald reported that the changeover proceeded smoothly, with both business people and the public adapting efficiently to the new system. The transition period allowed for both the old and new currencies to be used concurrently, providing citizens ample time to become accustomed to the decimal system.
Legacy of Decimalisation
The successful implementation of decimal currency is often regarded as one of the most seamless and well-executed reforms in Australia's history. It not only simplified financial transactions but also served as a milestone in Australia's journey towards establishing a distinct national identity, separate from its colonial past.
For a glimpse into the public education campaign, you might enjoy this nostalgic jingle featuring 'Dollar Bill':
References
- National Museum of Australia. "Decimal currency." https://www.nma.gov.au/defining-moments/resources/decimal-currency
- Reserve Bank of Australia Museum. "A New Currency." https://museum.rba.gov.au/exhibitions/the-decimal-revolution/a-new-currency/
- Australian Geographic. "On this day: Australia switches from pounds to dollars." https://www.australiangeographic.com.au/blogs/on-this-day/2017/02/australia-switches-from-pounds-to-dollars/
- Reserve Bank of Australia Museum. "Dollar Bill Turns 50 Years Old." https://museum.rba.gov.au/exhibitions/the-decimal-revolution/dollar-bill/
- National Archives of Australia. "Decimal currency." https://www.naa.gov.au/students-and-teachers/student-research-portal/learning-resource-themes/society-and-culture/public-education/decimal-currency
- State Library of Queensland. "'Changeover Day', 14 February 1966." https://www.slq.qld.gov.au/blog/changeover-day-14-february-1966
- Royal Australian Mint. "Before decimal currency – what did Australia use?" https://www.ramint.gov.au/sites/default/files/Before%20decimal%20currency.pdf
- NSW Government. "Australia's determined transition to decimal currency, 1966." https://www.nsw.gov.au/departments-and-agencies/nsw-treasury/about-us/nsw-treasury-bicentenary/walking-a-tightrope/moments/australias-determined-transition-to-decimal-currency-1966
- National Film and Sound Archive. "Decimal currency in Australia." https://www.nfsa.gov.au/latest/making-sense-dollars-and-cents-50-years