Australian decimal banknotes (introduced in 1966 with decimal currency and issued until 1996) were made of cotton-based paper — not wood pulp like ordinary paper. Here’s the breakdown:

• 100% cotton fibre (sometimes with a small linen blend).
   
• This gave them a durable yet flexible fabric-like quality and allowed them to fold without breaking down as quickly as wood-pulp paper.
   

• Metallic security thread: thin strip embedded in the paper (position varied by denomination and year, often shifted to reduce wear along wallet fold lines).
   
• Watermark: produced by varying paper thickness during manufacture (e.g., Captain Cook watermark in early $1 notes).
   
• Fluorescent fibres: tiny coloured threads visible under UV light.
   
• Special sizing & chemical treatment: made the notes harder to wash, bleach, or alter.
   

• The cotton paper had a distinct rough, cloth-like texture.
   
• Printed using intaglio (raised ink) and offset processes for crisp colour and tactile feel.
   
• Coated lightly to resist soiling and extend circulation life.
   

• In 1988, Australia pioneered the first polymer banknote (the $10 Bicentenary commemorative).
   
• By 1996, all paper decimal notes had been replaced with polymer for longer durability and stronger anti-counterfeit measures.
   

👉 In short: Australian decimal paper banknotes (1966–1996) were made from high-grade cotton fibre paper with embedded security features, very different to today’s plastic polymer notes.

• Raw cotton fibre (sometimes blended with linen) was cleaned, pulped, and beaten into a slurry.
   
• The pulp was spread onto fine wire mesh moulds to form thin sheets.
   
• At this stage, security elements were added:
   
  • Watermarks (e.g., Captain Cook on $1) formed by varying paper thickness with special dandy rolls.
     
  • Metallic security threads inserted during sheet formation (not printed on top).
     
  • Occasionally fluorescent fibres mixed into the pulp.
     
• Sheets were dried, pressed, and surface-sized (treated with chemicals) to increase durability, fold-resistance, and ink adhesion.
   

• Designs were engraved by hand on master plates (intaglio engraving on soft steel).
   
• Intaglio plates (for main portraits, coats of arms, numerals) gave the raised-ink tactile feel.
   
• Offset lithographic plates handled background tints and colours.
   
• Letterpress numbering plates were prepared for serial numbers.
   
• Plate letters (seen on some denominations) were small markers to track which plate was used.
   

• Background tints (offset printing): Multi-coloured, flat background designs laid down first.
   
• Intaglio printing: Portraits, main motifs, and bold text printed under heavy pressure, creating a raised texture.
   
• Letterpress printing: Unique serial numbers and prefixes applied in two runs (often with alignment quirks).
   
• Each sheet carried multiple notes per sheet (varied by denomination and year).
   

• Printed sheets were air-dried, then inspected under strong light for flaws (misprints, thread alignment, watermark clarity).
   
• Defects were removed; shortages were replaced with replacement notes (with asterisk * in serial, later “Z” prefixes).
   
• Sheets were cut into individual notes with precision guillotines.
   

• Notes were banded in bundles, then wrapped in bricks and packaged for Reserve Bank distribution.
   
• Each brick carried batch numbers for audit and tracking.
   
• From there, they were shipped to banks across Australia.
   

• Random samples were pulled and tested for:
   
  • Durability (folding, crumpling).
     
  • Chemical resistance (washing, bleaching).
     
  • Print quality (colour accuracy, plate alignment).
     
• This ensured counterfeiting was difficult and circulation life was maximised.
   

👉 In essence: Australian decimal paper notes were “cloth-paper” documents, produced by layering advanced paper technology (watermark + thread) with highly skilled engraving and multi-stage printing, then rigorously cut and inspected before release.

• Material: High-grade cotton fibre paper (sometimes with linen), treated for strength and durability.
   
• Security Built-In: Watermarks, metallic security threads, and fluorescent fibres added during paper making.
   
• Printing Stages:
   
  • Offset lithography – soft pastel background tints and fine colour detail.
     
  • Intaglio engraving – portraits, arms, bold numerals in raised ink you can feel.
     
  • Letterpress – serial numbers & prefixes in two passes.
     
• Inks Used:
   
  • Specialised banknote inks resistant to fading, chemical washing, and tampering.
     
  • Magnetic inks for serial numbers to allow machine reading.
     
  • UV-sensitive fluorescent inks in some later issues for added security.
     
• Finishing: Sheets inspected, faulty notes destroyed, replacements inserted, then cut, banded, and distributed via the Reserve Bank.

• 1966 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1966–74: Metallic thread embedded near centre.
   
• 1974 onwards: Thread repositioned closer to edge (to reduce wallet-fold wear).
   
• 1984: Withdrawn, replaced by polymer $1 coin.
   

• 1966 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1966–74: Central metallic thread.
   
• 1974 onwards: Thread shifted towards edge.
   
• 1988: Withdrawn, replaced by polymer $2 coin.
   

• 1967 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1967–74: Metallic thread central.
   
• 1974 onwards: Thread repositioned near edge.
   
• 1992: Final paper issue, phased into polymer by 1995.
   

• 1966 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1966–74: Metallic thread central.
   
• 1974 onwards: Thread near edge.
   
• 1988: Bicentenary commemorative released as first polymer test note (while paper issue continued).
   
• 1993: Final paper $10s, polymer fully replaced by 1994.
   

• 1966 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1966–74: Central metallic thread.
   
• 1974 onwards: Thread shifted.
   
• 1994: Final paper $20s, polymer replacement introduced.
   

• 1973 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1973–74: Central metallic thread.
   
• 1974 onwards: Thread moved towards edge.
   
• 1995: Final paper $50s, polymer replacement issued.
   

• 1984 launch: Cotton-fibre paper, Captain Cook watermark.
   
• 1984–96: Metallic thread (positioned near edge).
   
• 1996: Final paper $100s, polymer replacement issued.
   

• Watermark: Captain Cook on all denominations.
   
• Thread Movement: Mid-1970s shift from central to edge position across the board.
   
• Polymer Transition: Began 1988 with $10 commemorative, completed 1996 with $100.
   
• Inks: Intaglio inks, offset lithographic inks, magnetic inks (serials), and later UV fluorescent inks.

LATEST UPDATED: 8th October 2025