What is legal tender in Australia?
As you would expect, Australian banknotes are legal tender throughout Australia.
Coins are not legal tender if they exceed:
- 20c where 1c and/or 2c coins are offered (these coins have been withdrawn from circulation, but are still legal tender);
- $5 if any combination of 5c, 10c, 20c and/or 50c coins are offered; and
- 10 times the face value of the coin if $1 or $2 coins are offered.
For example, if someone wants to pay a merchant with 5c coins, they can only pay up to $5 worth of 5c coins and any more than that will not be considered legal tender.
The above is of course subject to any agreement between parties – a provider of goods or services is at liberty to set the commercial terms upon which payment will take place before an agreement for the supply of the goods or services is entered into.
For example, vending machines may not accept small denomination coins or payment may be agreed to be made in foreign currency such as USD.
If you would like any more information in relation to any commercial law or contractual issue, please contact Craig Pryor on (02) 9521 2455 or email email@example.com
Source: Reserve Bank of Australia