Australian paper decimal banknotes are one of the most active and enjoyable areas of modern Australian collecting.

They are familiar, affordable at entry level, historically important, and full of collector variety. From the first decimal notes of 1966 through to the final paper issues of the early 1990s, this series offers something for beginners, advanced collectors, investors, and specialist hunters.

This guide covers the main collecting areas, value drivers, condition points, and common traps when buying Australian paper decimal banknotes.

Australia changed from pounds, shillings and pence to decimal currency on 14 February 1966.

The new decimal banknotes introduced a fresh, modern Australian design language. They were colourful, bold, and very different from the earlier pre-decimal notes.

The first decimal paper denominations were:

• $1
• $2
• $10
• $20

The $5 note followed in 1967. The $50 note was introduced in 1973, and the $100 paper note followed in 1984.

These notes remained part of everyday Australian life for decades before polymer banknotes gradually replaced paper issues.

The $1 note is one of the most collected Australian decimal notes.

It features Queen Elizabeth II on the front and Aboriginal artwork inspired by David Malangi on the reverse. Large numbers were printed, but high-grade examples, scarcer signatures, star notes, first prefixes, last prefixes, and fancy serial numbers can still be highly desirable.

Common circulated $1 notes are often affordable, but condition makes a major difference.

The $2 note is another popular entry point for collectors.

It features John Macarthur and William Farrer, linking the note to wool and wheat — two major parts of Australia’s agricultural history.

The $2 note was heavily circulated, so crisp, original, high-grade examples are much harder to find than many people expect.

Collectors look closely at:

• Signature combinations
• Prefixes
• Star replacement notes
• Condition
• Originality
• Fancy serial numbers

The $5 paper note began in 1967 and is a key part of the decimal series.

It features Sir Joseph Banks and Caroline Chisholm. The $5 denomination is especially interesting because it bridges early decimal collecting and the later transition into polymer banknotes.

Earlier signature combinations and high-grade examples are sought after, particularly when the note is fresh, flat, clean, and original.

The $10 paper note is a strong collector denomination.

It features Francis Greenway and Henry Lawson. The note has excellent visual appeal and is widely collected across signature combinations, prefixes, serial-number varieties, and condition grades.

The $10 denomination also connects directly to the later polymer transition, especially with the 1988 Bicentennial $10 polymer note sitting beside the final era of paper decimal collecting.

The $20 paper note features Sir Charles Kingsford Smith and Lawrence Hargrave.

This denomination circulated heavily and was a serious working note. Because of that, many surviving examples show folds, stains, handling, teller flicks, edge wear, and loss of paper freshness.

High-grade $20 paper notes are far less common than casual collectors often assume.

The $50 paper note was introduced in 1973.

It features Lord Howard Florey and Sir Ian Clunies Ross. The $50 was a higher-value banknote and is generally found less often than the smaller denominations.

Collectors pay close attention to condition, signatures, prefixes, and whether the note has been properly stored.

The $100 paper note was introduced in 1984.

It features Sir Douglas Mawson and John Tebbutt. As the highest paper decimal denomination, it attracts collectors who want a complete paper decimal type set.

Because the face value is already high, collector premiums are most obvious in better grades, special prefixes, scarce varieties, and original uncirculated examples.

Not all old banknotes are valuable.

Value depends on several factors working together.

Condition is usually the number one value driver.

A note that looks “pretty good” to a non-collector may still only grade Fine or Very Fine if it has folds, teller flicks, stains, rounded corners, or loss of paper body.

Collectors look for:

• Clean paper
• Strong colour
• Sharp corners
• No folds
• No stains
• No tears
• No pinholes
• No writing
• No repairs
• Original paper texture

The jump from circulated to high-grade can be dramatic.

Australian decimal paper notes were issued with different Governor and Secretary signature combinations.

Some are common. Some are scarcer. Some are key varieties.

Signature combination matters because it helps identify the issue period and relative scarcity of the note.

The prefix is the letter combination before the serial number.

Collectors often seek:

• First prefixes
• Last prefixes
• Scarcer prefixes
• Replacement note prefixes
• Prefixes linked to specific varieties

A common note can become far more interesting if the prefix is special.

Star replacement notes are a specialist collecting area.

They were used to replace defective notes during production and are identified by a star in the serial number.

Australian decimal star replacement notes are not ordinary decimal notes. They sit in a genuine collector niche because supply is limited and demand is strong when the note is genuine, correctly identified, and fairly graded.

Unusual serial numbers can add collector appeal.

Examples include:

• Solid numbers
• Repeaters
• Radars
• Ladders
• Low numbers
• Million numbers
• Birthday numbers
• Near-solid numbers
• Patterns such as 777777 or 123456

Serial numbers do not automatically create high value, but they can create strong buyer interest when combined with the right note and the right condition.

Originality matters.

A note that has been pressed, washed, flattened, trimmed, repaired, or artificially improved may look better at first glance but can be worth less to serious collectors.

Collectors prefer honest original notes.

A naturally crisp note with original paper body is usually more desirable than a processed note trying to look better than it is.

Before buying or selling an Australian paper decimal note, check carefully for:

• Center folds
• Corner folds
• Teller flicks
• Stains
• Rust spots
• Ink marks
• Writing
• Pinholes
• Edge nicks
• Tears
• Limp paper
• Pressing
• Cleaning
• Repairs
• Trimmed edges
• Tape marks
• Poor storage damage

Small faults can make a large difference to Fair Market Value.

For new collectors, the best starting point is a simple type set.

A basic Australian paper decimal type set includes:

• $1 paper note
• $2 paper note
• $5 paper note
• $10 paper note
• $20 paper note
• $50 paper note
• $100 paper note

Once the basic type set is complete, collectors often move into:

• Signature sets
• First and last prefixes
• Star replacement notes
• High-grade examples
• Fancy serial numbers
• Scarcer varieties
• Complete denomination runs

Start simple. Learn condition first. Then move into scarcity.

Fair Market Value is not guesswork.

It should be based on real market evidence, condition, demand, scarcity, and recent comparable sales.

A note should not be priced only because it is old.

A proper Fair Market Value assessment considers:

• Denomination
• Year
• Signature combination
• Prefix
• Serial number
• Grade
• Originality
• Eye appeal
• Market demand
• Recent comparable sales

This is where experience matters.

Two notes of the same denomination and signature combination can have very different values if one is original Uncirculated and the other has been folded, pressed, or mishandled.

Paper decimal banknotes should be stored carefully.

Use proper archival-quality banknote sleeves and avoid PVC plastics, tape, glue, heat, humidity, direct sunlight, and rough handling.

Do not laminate notes.
Do not clean notes.
Do not press notes.
Do not write on sleeves without protecting the note.
Do not store notes loose in drawers, envelopes, or ordinary plastic pockets.

Protect the note. Protect the condition. Protect the value.

Australian paper decimal banknotes from 1966 to 1993 remain one of the best collecting fields in Australian numismatics.

They are accessible enough for beginners but deep enough for specialists.

The strongest notes are not simply old notes. They are correctly identified, properly graded, original, fairly priced, and supported by genuine collector demand.

Condition, scarcity, signature, prefix, serial number, and originality all matter.

Trust first. Say what you mean. Do what you say. What you see is what you get.