Australian decimal banknotes issued between 1966 and 1996 were not made from ordinary paper. Unlike everyday paper, which is produced from wood pulp, Australian banknotes were manufactured using high-grade cotton fibre paper specifically designed for durability, security, and long circulation life.

The paper used for Australian decimal banknotes was produced from 100% cotton fibre, with some issues incorporating a small linen blend.

This specialised material provided:

• Exceptional strength and durability
• Resistance to tearing and wear
• A distinctive cloth-like texture
• Improved flexibility when folded repeatedly

The result was a banknote that could withstand years of circulation while maintaining its appearance and security features.

Security features were incorporated during the paper manufacturing process rather than added after printing.

A Captain Cook watermark was built into the paper by varying the thickness of the cotton fibres during manufacture. The watermark becomes visible when the note is held to the light and remains one of the most important authentication features of Australian decimal paper notes.

A thin metallic thread was embedded within the paper during sheet formation.

Early issues featured a centrally positioned thread. During the mid-1970s, the thread was moved closer to the edge of the note to reduce wear caused by repeated wallet folding.

Tiny coloured fluorescent fibres were mixed directly into the paper pulp and become visible under ultraviolet light.

Special chemical sizing and protective treatments were applied to improve:

• Ink adhesion
• Fold resistance
• Durability in circulation
• Resistance to washing and alteration

Cotton fibres were cleaned, pulped, and beaten into a fine slurry.

The paper was then formed on specialised wire moulds where:

• Watermarks were created
• Security threads were inserted
• Fluorescent fibres were incorporated

The sheets were then pressed, dried, and chemically treated before printing.

Banknote designs were prepared using highly skilled engraving techniques.

Master engravers created steel printing plates featuring:

• Portraits
• Coats of Arms
• Denomination numerals
• Decorative elements

These engraved plates would later produce the raised printing characteristic of genuine banknotes.

Australian paper notes were produced using multiple printing methods.

Applied the soft background colours, fine patterns, and intricate tinting.

Used engraved plates under immense pressure to create raised ink.

This process produced:

• Portraits
• Major design elements
• Denomination values
• Text and lettering

The raised texture remains one of the easiest features for collectors to identify on genuine notes.

Serial numbers and prefixes were added separately using specialised numbering presses.

Every printed sheet underwent rigorous inspection.

Notes were checked for:

• Watermark quality
• Thread placement
• Print alignment
• Colour consistency
• Paper defects

Faulty notes were removed before release.

To maintain complete sheet counts, replacement notes were inserted. These are the famous replacement notes sought by collectors today, including:

• Asterisk (*) replacements
• Z-prefix replacements

After inspection:

• Sheets were precision cut into individual notes
• Notes were bundled into straps and bricks
• Batch numbers were recorded for audit purposes
• Finished notes were delivered to the Reserve Bank of Australia for distribution through the banking system

Australian decimal notes used sophisticated security inks designed to resist fading, tampering, and chemical alteration.

These included:

• Intaglio inks for raised printing
• Offset lithographic inks for colour work
• Magnetic inks used for machine-readable serial numbering
• UV-reactive inks incorporated into later issues

Australia became the first country in the world to issue a polymer banknote with the 1988 Bicentenary $10 note.

The transition occurred progressively:

• $1 note replaced by coin in 1984
• $2 note replaced by coin in 1988
• Polymer $10 introduced in 1988
• Polymer conversion completed in 1996 with the replacement of the paper $100 note

By 1996, Australia's circulating paper decimal banknotes had been fully replaced by polymer technology, providing greater durability and significantly enhanced counterfeit protection.

Australian decimal paper banknotes were sophisticated security documents manufactured from high-grade cotton fibre paper and protected by embedded watermarks, metallic security threads, specialised inks, and advanced printing techniques.

Far more than simply "paper money", they represent a remarkable combination of craftsmanship, engineering, and security technology that remains highly regarded by collectors today.

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

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

UPDATED: 14th JUNE 2026