There are three ways that a coin that normally has a reeded edge can end up with a smooth edge.
- A mint error where the wrong collar die is used. This is least likely for your coin, as it would require the existence of a collar die intended for a coin exactly the same size as a 10 cent piece, but without reeding; no coins fitting this description were being made by Australia in 1989, so the existence of such a collar die seems unlikely.
- A mint error where a coin is struck without a collar die in place at all. Such a coin is called a "broadstrike"; as the name implies, a broadstrike is usually considerably larger than a normal coin of the same type, because the edges of the coin squirt out the sides when no collar die is in place to stop that from happening; the end result is a coin that can look kind of like a stuffed-crust pizza. This clearly isn't what is happening with your coin.
- Post-mint damage, where either regular wear from circulation or peculiar wear (like from getting stuck in an industrial clothes dryer) causes the reeding to be removed. It's also possible for the reeding to be removed deliberately, by someone sitting around with a metal file and too much time on their hands. Finally, "spooning" the rim of a coin in an effort to make a "coin ring" can have the same effect, though it's much harder to do this on a cupronickel coin than a silver coin. But whatever the cause, this seems to be the best explanation for your coin.
With all the other scuffs and scratches it has suffered, and that it "looks shiny", I'm wondering if someone put this coin into one of those jewellery-polishing tumblers?
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis