By Stephanie Scott, Phoebe Baker
With inflation slashing coin value and metal prices rising, the future of the five-cent piece in Australia looks bleak.
Executive director of the National Retail Association Gary Black said there is no doubt the coins will be taken out of circulation when the cost of producing the five-cent piece is the same as its value.
“Inflation over time will erode the value of the low currency items and effectively render them meaningless,” he said.
Mr Black said cash value is declining as consumers prefer credit and debit cards, and that has raised concerns for some retailers.
“This low value currency will diminish with the uptake of other payment methods,” he said.
“[For retailers] it will require rounding up at the cash register.”