Today could mark the end of the 5 cent coin

Today could spell the end for the 5 cent coin. The government is reportedly considering cutting the coin completely in
Economy

Today could spell the end for the 5 cent coin.

The government is reportedly considering cutting the coin completely in this year’s budget, to be delivered tonight.

For the first time in 50 years, inflation has caused the tiny coin to be a burden on the economy, costing 6 cents to make each one.

Thanks to no-fee card payments at supermarkets and retail stores, the 5 cent coin has become somewhat useless with many arguing it’s time for it to go.

The last time Australia had a currency change like this was in the 1990 budget when the 1 and 2 cent coins were shafted.

While many people say they would be happy to see the coin go, it would mean big changes for businesses who would have to re-price items by rounding them up or down to account for the lack of 5 cents.

Many people have speculated that this could be the beginning of the end for cash all together, with some predicting everything will be paid for electronically in years to come.

That means coins could turn into collectable items in the future and become very valuable as keepsakes rather than currency.

Mint chief executive Ross MacDiamid said the end of the 5 cent coin has been a long time coming.

“We’ve seen a halving of the demand for five cent pieces over the past five years and our expectation is that it will just simply progress,” Mr MacDiamid said.

“It’s lost its utility; it will lose interest from the public.”
He said coins worldwide were having a tough time.

“We’ve seen a decline in Australia over the next three to four years of about 25 per cent in demand for circulating coin,” he said.

The coin — which has an echidna on one side the Queen on the other — would be phased out over the next few years as the Mint stopped making them.

Would you be happy to see the end of the 5 cent coin? Do you remember when the 1 and 2 cent coins were cut?

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