| Author |
 Replies: 18 / Views: 5,327 |
|
Valued Member
Australia
301 Posts |
Just let you guys know looks like the 5 cent coin is going to end and like real soon. Channel 7 news reported this is probably the last year of minting the 5 cent for general circulation. 2014 might not be so good to hang on to but the 2011 -12-13 might be a good idea to keep.
|
|
|
|
Pillar of the Community
Australia
762 Posts |
There was a story in todays Age about it too Quote:
The diminutive denomination, made from a copper-nickel alloy, actually costs six cents to produce.
Its hefty price tag puts it squarely in the sights of a proposed review of Australia's coins, although its abolition would be opposed by charities who benefit from the unwanted change.
But when I googled it I came across stories from 2009 and 2011 that also said they were just about to cease production. So who knows what they will do. |
|
Valued Member
 Australia
301 Posts |
Your absolutely correct Mob of Roo , I clearly remember the talk of phasing out the coin for quite some time now but I really think the end is near, they were very clear they wanted to fast track it. But yeh I guess we believe it when we see it.
|
|
Pillar of the Community
United States
1590 Posts |
Think about this; I don't know if you pay sales tax in Australia, but if you do it will necessarily round up to 10 cents. or if you already pay more than 10 cents in sales tax then up to 20 cents on the dollar. HUGE tax increase.
|
|
Pillar of the Community
Canada
2805 Posts |
No, that's completely wrong.
|
|
Pillar of the Community
Australia
852 Posts |
There is no sales tax in Australia,that was replaced by the GST (goods and services tax). Similar to the VAT in Britain.
Payments by cards/electronic are still to the cent,payments by cash are rounded up or down to the nearest 5 cents.
I wouldn't worry about the few cents tax. I would worry that the government (with the support of the banks and card companies) is trying to phase out cash. A cashless society is easier to control as you are then reliant on Big Brother and his minions (the corporations) who will be able to track every purchase or donation that you make. Think the IRS scandal was bad, wait until the government audits those who make donations to the opposition.
With your "money" all in electronic form it becomes easy for TPTB take it to either punish you or to finance TARP and the other Ponzi schemes via new taxes or bail in (remember Cyprus).
BTW last week in Israel they announced that they are planning to phase out all cash within a few years. You would think that they of all people would fear giving the government control of your wealth and savings after having experienced so many pogroms.
|
|
Pillar of the Community
United States
1590 Posts |
Thank You for the information. The Cent in America gained popularity because of sales tax. Before that prices generally ended in "0" or "5".
|
|
Pillar of the Community
Australia
560 Posts |
I hope they do get rid of it, and reduce the size of the coins. Though without the fee loafer on one side that is.
|
|
Pillar of the Community
Australia
552 Posts |
I'll acknowledge it when it really happens Though the hype does help 5c set sellers on ebay though I also heard rumour that the 10c coin was also going to be scrapped along with the 5c Food for thought................ |
|
Formerly nancyc
Australia
5385 Posts |
When the RAM advise they are going to get rid of the 5c it will be made public then maybe all this hype and speculation will go away.  People have been rattling on about it for years.  I'd much rather have it straight from the horse's mouth. 
life is a mystery to be lived not a problem to be solved
|
|
Pillar of the Community
Australia
507 Posts |
It will happen after many years of consultation with vending machine operators (including parking meters and the likes of Myki, which already disown the 5c), but any change of dimensions/weight would need more lead time...
|
|
Pillar of the Community
Australia
762 Posts |
Quote:
It will happen after many years of consultation with vending machine operators (including parking meters and the likes of Myki, which already disown the 5c), but any change of dimensions/weight would need more lead time... As for discontinuing the 5c, most vending machines already don't accept them. All it would mean is that our grocery bills would be rounded to the nearest 10c instead of 5c. And for the increasing number of people that pay with cards there would be no difference at all. It is actually a bit of a mystery why they are still being produced as they are pretty useless and if I see one on the ground I don't even bother picking it up (unless it was a 1972). Presumably the government still make a profit from producing them. Here's a question. If the 5c did get discontinued, do you think the RAM would reduce the price of a Mint set?  |
|
Valued Member
Australia
301 Posts |
Actually Mob of Roos , the reason given buy the government on the news for wanting to discontinue them is the same reason the silver coins were axed. It is actually costing the mint 6 cents in materials to produce the coin making it unviable.
Now how true that is one can only wonder but that's what was reported on the local nightly news. If this is true I would think next year would probably be the last. Lets say they only mint 5 million that's a 5 million cent lost before production begins , I don't see anyone doing that for to long.
|
|
Valued Member
Australia
112 Posts |
Long overdue. 2016 Will see some big changes in our currency or changes will start to be introduced.
NZ have been without a 5c coin since 2006 and reduced the size of their silver coins at the same time (the 10c coin was reduced in size and changed to copper)
It is only a matter of time before this happens in Australia. It will happen before the RAM is sold by the government to make it more profitable for a buyer to command a higher sale price.
|
|
Pillar of the Community
Australia
852 Posts |
By 2016 the demand for all coins in Australia will be perhaps less than half what it is now.
As of this year the NSW government (biggest state in Australia) is phasing out most of the use of coins on public transport. The Opal card started a few months ago, many ticket vending machines will only take plastic and as of a few weeks back most government buses are pre-pay only. Other states are also doing similar moves.
Coin operated vending machines are now duel card/coin machines.
The club at which I work has hundreds of poker machines. They no longer take/pay out in coins.
With the rapid move to a cashless society I am surprised that a glut of surplus coins isn't killing mint production.
|
|
Pillar of the Community
Australia
560 Posts |
I doubt we will have a cashless society, as a lot of small businesses don't take card. I see the largest economies keep the equivalent of 1 cent in circulation, mid level like our economy keep 5 cents and a few smaller wealthy countries the 10 cent equivalent. Then there are the least wealthy countries that usually keep less than the 1 cent in circulation. So I doubt we will phase out the 5 cent any time soon.
|
| |
Replies: 18 / Views: 5,327 |
Posted 06/05/2014 05:57 am
