Key Points
- The Reserve Bank's governor wrote to the federal treasurer over the design of the $5 note.
- He sought advice over whether to update the $5 note with a portrait of King Charles or an Indigenous design.
- The $5 re-design comes after the death of Queen Elizabeth last year.
Australia's central bank offered the federal government the option to approve a portrait of King Charles III to appear on the $5 note after the death of Queen Elizabeth II.
The Reserve Bank of Australia (RBA) is responsible for designing banknote but , which had appeared on the fiver since 1992. In early February, the RBA revealed.
show RBA governor Philip Lowe wrote to Treasurer Jim Chalmers in October, a month after .
Mr Lowe wrote that an updated fiver was of "national significance" and asked the government to weigh in on whether to proceed with a portrait of King Charles or an Indigenous design.
"lf the Government is of the view that the King's portrait should be on the $5 banknote, then the Bank will proceed on that basis and seek an appropriate image from the Palace," Mr Lowe wrote.
"Alternatively, if the Government's view is that the monarch should no longer be on Australia's banknotes, the Bank will explore a new design that honours the culture and history of the First Australians. lt is not our intention to replace the monarch with another individual."
The FOI documents show Mr Chalmers responded to Mr Lowe in December, with the treasurer saying the government "would be comfortable" with the second option.
Of these two options presented by the Bank, the Government would be comfortable with a new design that honours the culture and history of First Australians, assuming a proper process for inclusive consultation is undertaken," Mr Chalmers wrote.
It is yet unknown what the new design will look like, but the RBA said the updated side of the note would be designed in consultation with First Nations people, while the other side will continue to feature the Australian parliament.
The reigning British monarch has appeared on at least one of the nation's banknotes since 1923.
The Queen's image was first used on an Australian banknote in 1953, when it appeared on the one-pound note. When Australia moved to decimal currency in 1966, she appeared on the $1 dollar note, which was dumped in 1984.
Her portrait has been on the $5 note since 1992.
Mr Lowe said it's unlikely the new $5 note will enter circulation anytime soon, with design and printing being "a lengthy process".
The notes featuring the portrait of the Queen can be used during this period and will continue to be accepted after the new note is released.
