Currency (Royal Australian Mint) Determination 2007 (No. 8)

The core concept is a “determination of specifications” under s 13A(1) of the Currency Act 1965. This section allows the Treasurer to determine, by legislative instrument, the denomination, standard composition, standard weight with allowable variation, dimensions, and design of a coin. Once determined, any coin minted by the Royal Australian Mint that conforms to those specifications is legal tender for its denominated value under s 16 of the Currency Act. The Determination itself is a legislative instrument under the Legislation Act 2003 and is subject to disallowance and registration, though it was made only a few days before the end of the 2007 parliamentary year and was relatively uncontroversial.

“Legal tender” is a key concept indirectly engaged here. Coins that meet a valid specification are legal tender for the payment of any amount, subject to limits in s 16 (coins of 5c and above are legal tender for any amount; coins of less than 5c are legal tender only up to 20c). These two $1 coins therefore could, in theory, be used to discharge a debt of $1. In practice they will not circulate because their collector value and, in the silver coin’s case, intrinsic metal value exceed one dollar. The concept of legal tender for collector coins is sometimes misunderstood: a business may lawfully refuse to accept a $1 silver coin as payment for a $1 item if no debt exists (the transaction is a sale, not a debt repayment), but if a debt is owed, the creditor must accept the coin. This distinction matters little for these coins outside collector circles.

“Standard composition” refers to the required metallic content. For Item 1, it is a ternary alloy of copper, aluminium and nickel, consistent with the then circulating $1 coin. For Item 2, it is at least 99.99% silver, a fineness also known as “four nines” fine. The precision of the silver standard ensures the coin meets expectations for a bullion or proof collector coin. The allowable variation from standard weight (±0.27 g for the cupro-nickel coin and ±0.85 g for the silver coin) reflects manufacturing tolerances. The dimensions are given as maxima, not nominal sizes, meaning the Mint must not exceed those limits but can produce slightly smaller coins. This is typical for coin specifications to allow for die wear and planchet variations.

“Design” is the final element specified. The obverse and reverse descriptions are detailed, including inscriptions, layout, and representations. The scouting coin’s design includes the Scouts Australia logo and the initials CG for the designer, likely Cameron Grant. The silver coin reproduces the design of the 1921 Kookaburra Penny, an Australian penny known for its artistic merit. The outer inscriptions and background whirlpool pattern differentiate it from the original penny and make clear it is a $1 coin.

The Determination does not prescribe the number to be minted, the finish (proof or uncirculated), or the price at which the Mint sells them. These are commercial decisions for the Mint. The Mint, as a statutory corporation, operates on a commercial basis and is expected to recover costs and make a profit, which is remitted to the Commonwealth. The profit on the cupro-nickel coin comes from seigniorage: the difference between face value ($1) and production cost (likely less than $0.40 for a standard coin). The profit on the silver coin comes from the premium collectors pay, which far exceeds the metal value. In that sense, the Determination enables a form of government enterprise competing with private bullion dealers and mints.

The Determination directly affects the Royal Australian Mint, which must ensure any coins produced under its authority conform exactly to the specifications, including alloy composition, weight within tolerances, and design details. The Mint’s quality assurance procedures must account for the unusual 14 segment edge (7 milled, 7 plain) on the scouting coin, which is non standard for Australian $1 coins. The Mint also bears the cost of creating dies and manufacturing limited runs. The silver coin’s large diameter (50.2 mm) and thickness require separate handling and packaging.

Collectors and investors are the intended end users. They will purchase these coins from the Mint or on the secondary market, often at prices significantly above face value. The scouting coin was likely sold in the $15-$30 range in its year of issue; the silver coin, given its weight and purity, would have retailed for over $100. Collectors who buy these coins rely on the Mint’s certification that the coins meet the Determination. If a coin does not conform (e.g., wrong alloy or misspelling) it may not be legal tender and its value would plummet. Collectors also face counterparty risk from the Mint: the Mint could reproduce the same design in future years, potentially affecting scarcity, though the date 2008 prevents exact reproduction.

Banks and businesses are indirectly affected. While these coins are legal tender, they are rarely tendered. If a collector were to deposit a silver coin at a bank, the teller would likely identify it as a collectable and may refuse deposit or accept it only at face value. Banks are not obliged to accept deposits of legal tender; they can set their own policies. For retail businesses, if a customer attempted to pay with a $1 silver coin, the business could refuse on the basis that it is not a circulating coin and that accepting it would cause inconvenience. However, if a debt were already incurred (e.g., an invoice) the debtor could lawfully discharge up to $1 of debt using the coin. This scenario is vanishingly rare. The main impact on businesses is nil because these coins do not circulate.

Taxpayers fund the Mint indirectly but are not individually affected. There is no public subsidy for these coins; the Mint charges prices that cover costs and yield a surplus. However, if the Mint ever misjudges demand and mints more than collectors want, the production costs are borne by the Mint and ultimately by the Commonwealth. That risk is inherent in any government business enterprise.

The Determination does not affect private mints or bullion dealers because it only authorises the Royal Australian Mint to produce these specific coins. Private entities cannot lawfully produce coins that bear the Queen’s effigy or that purport to be Australian legal tender. The government therefore maintains a monopoly on coinage, though it competes with private bullion sellers who sell silver rounds and ingots.

The Determination imposes no duties on private individuals. The only entity with a duty is the Royal Australian Mint, and even then the duty is conditional: if the Mint decides to produce these coins, it must conform to the specifications. The Mint is not compelled to mint any coins under this Determination; it may choose to never produce them. In the event of production, the Mint must ensure that each coin’s weight falls within the allowable variation, composition meets the standard, diameter and thickness do not exceed the stated maxima, and the design matches the description. The Mint’s internal compliance processes would include random sampling, weight verification, X ray fluorescence testing for alloy, and optical inspection of design features.

The key right conferred is the right of any holder of a conforming coin to treat it as legal tender for $1. This right arises from s 16 of the Currency Act, not from the Determination itself. The Determination merely provides the specifications that make a coin eligible for legal tender status. Conversely, a coin that does not meet the specifications (for example, a coin from a different mint run with a different weight) is not legal tender and cannot be used to discharge a debt. The holder’s recourse would be against the Mint for misrepresentation or against the seller, not under the Currency Act.

There is also a right of the public to rely on the specification. If a buyer purchases a coin described as in accordance with this Determination, they have a reasonable expectation that it is. If the Mint later admits that some coins were struck off weight, the buyer could claim they are not as described. The Determination effectively serves as a public standard that can be used in consumer protection actions.

The Determination itself does not create any rights for the Mint. It is an authorisation under s 13A(1), not a licence or a grant. The Mint already has the power to mint coins under the Currency Act; the Determination simply removes legal uncertainty about which coins are considered validly specified. Without a determination, any coin minted by the Mint would not be legal tender.

This Determination contains no penalty provisions. That is entirely consistent with its character as a specifications instrument. Penalties for coinage offences are found in Part IV of the Currency Act. The relevant offences include counterfeiting (s 24, maximum penalty 10 years imprisonment) and uttering counterfeit coins (s 25, maximum 10 years). The existence of detailed specifications might assist in proving that a counterfeit is not a genuine coin because it differs in weight, composition, or design. But nothing in this Determination creates new enforcement powers.

The Royal Australian Mint is subject to internal government oversight from the Minister for Finance (the Mint is part of the Finance portfolio). The Mint’s compliance with specifications is a matter of administrative law, not criminal law. If the Mint produced a coin that did not meet the specifications, it could be subject to an injunction or a declaration that the coins are not legal tender. However, no private plaintiff would have standing to challenge the Mint’s specifications, as the public generally has no private right to enforce coin standards. Any challenge would likely have to come from the Treasurer or the Department.

For collectors, the practical enforcement is through contract and consumer law. If a collector buys a coin from the Mint that fails to conform (e.g., the silver coin is only 99.9% pure instead of 99.99%), the Mint could be liable for breach of contract or misleading conduct under the Australian Consumer Law (Sch 2 to the Competition and Consumer Act 2010). Penalties for corporations under the ACL can be substantial (the greater of $50 million, three times the benefit, or 30% of turnover). The Mint is not immune from such liability. Thus, the Determination, although not a penalty imposing instrument, provides a benchmark that can be used to establish non compliance.

There are no specific enforcement agencies for this Determination. The Mint is its own regulator in terms of production; the Australian Securities and Investments Commission might have a role if the coin is marketed as an investment, but that is remote. The Australian Competition and Consumer Commission could investigate if the Mint misled the public about the coin’s specifications. In practice, the Mint maintains high standards because its reputation and future collector demand depend on it.

The Determination is made under the Currency Act 1965 and sits within that regime. It does not amend or repeal any other legislative instrument. Clause 4 expressly provides that the specifications do not affect any other determination, meaning multiple determinations for $1 coins can coexist. For example, the standard circulating $1 coin has its own specification under an earlier determination (likely Currency (Royal Australian Mint) Determination 2007 (No. 1) or similar). The existence of multiple $1 coin specifications does not cause conflict: each coin, if minted to its own specification, is legal tender. This multiplicity is common for collector coins. It does, however, mean that the Mint must manage inventory and not confuse dies.

The silver coin’s composition of at least 99.99% silver engages the Competition and Consumer Act 2010 if the Mint makes statements about fineness. The Mint may need to comply with precious metals marking standards or with ASIC’s regulatory guide for investment products. While the coin is legal tender, it is also a product sold for a premium, potentially bringing it within the definition of a financial product under the Corporations Act 2001 (s 765A excludes legal tender from the financial product definition, but only for the coin itself; if sold bundled with other services it might). In practice, the Mint has relied on the exemption.

The design of the silver coin reproduces the 1921 Kookaburra Penny, which was originally a Commonwealth of Australia coin. There is no copyright issue because the original design is in the public domain (designs from before 1955). The Scouts Australia logo on the scouting coin is likely used under licence; the Determination does not address intellectual property licensing. The Mint would have obtained permission or had a separate agreement.

If a person attempted to use the silver coin as a deposit at a bank, the interaction with the Banking Act 1959 might arise. Banks can refuse to accept deposits of large coins or collectables. The Reserve Bank of Australia, which regulates currency, has no role in the specifications of collector coins beyond the broader Currency Act framework. The Determination is not subject to the competition principles in the Competition and Consumer Act, as it is an instrument of government.

This Determination was made on 17 December 2007 and commenced the day after registration. It has not been amended since. It remains in force as a legislative instrument. However, subsequent determinations for other $1 coins have been made, some on similar themes (e.g., 2008 Year of the Rat $1 coin, 2008 Kookaburra $1 coin in silver, etc.). The Determination has not been repealed; it likely remains on the register. The Mint produced the coins in 2008 and sold them; no further minting is expected, but the Determination keeps the specifications available if the Mint ever decided to reissue.

The Currency Act was amended in 2002 to insert s 13A, giving the Treasurer power to determine coin specifications by legislative instrument. Before that, specifications were set in regulations. The move to legislative instruments allowed faster and more flexible changes. This Determination is one of the early uses of that power. It is not a significant precedent, as many similar determinations exist.

The scouting centenary coin was part of a series of commemorative $1 coins issued by the Mint in 2008, including a coin for the Year of the Monarch Butterfly and others. The silver Kookaburra Penny replica was part of the Mint’s ongoing “Kookaburra” series that began with the 1990 silver proof $1 coin (though that series had gaps). The Determination is notable for including a coin that reproduces the design of a pre decimal penny, which could cause confusion in the collector market for the original 1921 penny. The Mint has since issued many other “reverse proof” and colourised coins, none using this Determination.

Because the Determination has not been amended, the specifications remain frozen in time. The weight tolerance for the silver coin is ±0.85 g, which is generous for a bullion coin. Modern silver bullion coins often require a tighter tolerance of ±0.1 g. The Mint may have used a looser tolerance because the coin is a proof collector piece rather than an investment bullion coin. No amendment has tightened this.

There is no reported litigation concerning this Determination. The high level of specificity and the Mint’s strong quality control minimise disputes. The most likely litigation scenario would be a class action by collectors if a batch of coins from the Mint were found to be off weight or impure. In that event, the pleadings would refer to this Determination as the standard. For example, if the silver coin were discovered to contain only 99.5% silver, buyers could argue the Mint breached the determination and thus the implied condition in the sale contract that the coin would conform. The Mint might argue that the tolerance applies and that the determination sets only a minimum of 99.99%, which is practically impossible to measure exactly. The current unamended Determination might be used to support a claim, but no such claim has eventuated.

There is also a possibility of a constitutional challenge? The Currency Act is a valid law under s 51(xii) (currency, coinage). The Determination is within power. No challenge.

Indirectly, the coins could be involved in criminal prosecutions for counterfeiting if someone attempted to produce fakes. The unique edge pattern of the scouting coin (14 segments, 7 milled, 7 plain) is a security feature that makes counterfeiting harder. The silver coin’s large size and intricate design also present challenges. But the Determination itself would not be litigated; the fact of the specifications would be evidence.

In short, this Determination has generated zero litigation. Any future litigation is unlikely because the coins are issued in limited quantities and the Mint resolves quality claims privately. The absence of litigation is a testament to deterministic specifications and good manufacturing practice.

The biggest trap for the unwary is the assumption that a $1 coin from this Determination can be used like any other $1 coin. The scouting coin, while identical in alloy and approximate size to a regular circulating $1 coin, has a 14 segment edge with alternating milled and plain sections. Standard Australian $1 coins have a smooth edge with intermittent milling? Actually the standard $1 coin is a 12 sided (not round) coin with a plain edge. This scouting coin is round and has a mixed edge. Most vending machines, parking meters, and coin counting machines are designed to recognise either the shape of the standard $1 coin or its edge mill pattern. The scouting coin will likely be rejected by many machines, causing frustration. The silver coin, at 50.2 mm diameter, will not fit into any common coin slot.

The silver coin’s face value of $1 versus its melt value creates a perverse incentive. If someone receives it as change (extremely unlikely but possible if a collector carelessly spends it), they could immediately sell it for far more than $1. The issuer (the Mint) profits from the system because they sell the coin for about $100, but the coin remains legal tender for $1. This is not a gotcha for the collector but could be for a business that accepts it as $1 without knowing its true value. A dishonest person could buy the coin for $100, then use it to pay a $1 debt, effectively paying $1 for a $100 item. That would be legal, but only if the debt existed. A business can always refuse to accept such an item as payment for a sale.

The scouting coin’s reverse includes the words “CENTENARY OF SCOUTING”. There is no mention of Australia or the denomination except “1 DOLLAR” around the outside. A person unfamiliar with the coin might mistake it for a foreign coin. The obverse does say “AUSTRALIA 2008”, but that is small. The initials “CG” for the designer are also present; some might confuse them with a hallmark. The design is crowded.

The edge pattern of the scouting coin is unusual: 7 milled and 7 plain alternating segments. This is a pain for the Mint to produce because it requires a segmented collar. If the Mint ever uses the same dies for a different coin, the edge pattern might be inadvertently reused, causing confusion. The Determination specifies exactly 14 segments and the milling pattern; any deviation would render the coin non conforming.

The silver coin’s design includes the words “1921 KOOKABURRA PENNY” in quotation marks. This might lead collectors to believe it is a reproduction of the penny, but it is not a penny; it is a $1 coin. The Mint likely intended that as part of the aesthetic, but it could mislead people into thinking the coin has the value of a rare penny (which could be worth thousands). That could inflate expectations.

Clause 4 provides that these specifications do not affect any other determination. This means there is no repeal of earlier $1 coin specifications. There could be a situation where a person finds an old $1 coin from a 2001 determination and tries to use it. That coin is also legal tender. So multiple $1 coin specs exist, none cancelling the others. For collectors, this is fine; for the public, it means any $1 coin with any design from any year is legal tender if it was issued under a valid determination. That could be confusing if duplicate designs appear.

The Determination does not specify the finish (proof, uncirculated, etc.). The Mint sold the silver coin as a proof coin, but the Determination does not require a proof finish. The Mint could, theoretically, produce a different finish (e.g., bullion finish) under the same specs as long as composition, weight, dimensions, and design are met. That would upset collectors who bought the proof version expecting exclusivity. The Mint has not done so, but the legal risk remains.

Compliance with this Determination is straightforward for the Royal Australian Mint, but any error is irrevocable. The Mint must ensure that the production process yields coins meeting the exact composition, weight within tolerance, dimensions not exceeding the stated maxima, and design matching the descriptions. The Mint’s standard operating procedures would include:

• Metallurgy: For the scouting coin, the alloy must be copper, aluminium and nickel in the usual proportions (likely 92% copper, 6% aluminium, 2% nickel). The Mint must verify the composition through batch testing. For the silver coin, the mint must source at least 99.99% silver, which requires careful refining and certification.

• Weight control: The scouting coin must weigh between 8.73 g and 9.27 g; the silver coin between 59.61 g and 61.31 g. The Mint uses automatic weighing machines that reject coins outside the tolerance. The tolerance of ±0.85 g for the large silver coin is relatively wide (about 1.4%), so compliance is easier.

• Dimensional control: The maximum diameter of the scouting coin is 25.12 mm and maximum thickness 2.80 mm. These are maxima, so coins can be slightly smaller. The Mint would aim for nominal sizes below the maxima to avoid rejections. For the silver coin, maximum diameter 50.20 mm and thickness 4.13 mm.

• Edge milling: The scouting coin requires 14 segments, 7 milled and 7 plain. This is a complex edge pattern. The Mint must use a split collar with alternating smooth and serrated sections. The indexation of the coin inside the collar must be correct so that the milling aligns with the design (though the design likely does not require orientation, but the milling pattern is consistent all around).

• Design fidelity: The obverse and reverse images must match the descriptions. The effigy of Queen Elizabeth II must be the Ian Rank Broadley effigy used on Australian coins from 1999 to 2019. The initials “IRB” must appear. For the scouting coin, the Scouts Australia logo must be reproduced accurately, and the inscriptions must match. The Mint would obtain approval from Scouts Australia for the logo use. The copper, aluminium and nickel coin must not have any colouration or omitted text. For the silver coin, the reproduction of the 1921 Kookaburra Penny must be faithful to the original, but the outer “frame” with the whirlpool pattern and outer inscriptions must be present.

• Record keeping: The Mint must maintain records of production runs, including die details, composition samples, and weight distribution. These records can be used to demonstrate compliance if a coin is later questioned.

• Packaging: While not required by the Determination, the Mint must ensure that coins are clearly labelled as $1 legal tender. The silver coin is usually sold in a capsule and box set. The Mint must ensure that the packaging does not misrepresent the coin (e.g., claiming it is “pure silver” when the alloy is 99.99% , that is fine, but must be true). The Mint must also provide a certificate of authenticity.

• Legal tender implications: The Mint must not represent that the coin is suitable for general circulation. It can disclaim any liability for vending machine compatibility. The Mint should ensure that its sales material does not encourage use as currency, as that could lead to consumer issues.

For businesses and collectors outside the Mint, compliance is minimal. Collectors buying the coin should verify it against the Determination if they suspect a counterfeit. They can weigh the coin at home: the scouting coin should be 9.00 g; the silver coin 60.46 g, but variations within tolerance are acceptable. A cheap digital scale can confirm. If the coin is lighter than the lower limit, it may be fake or defective. The collector should then contact the Mint for replacement.

Businesses that handle cash need not worry about these coins; they are unlikely to encounter them. If a business does receive a silver coin, it is legal tender for $1; the business can accept or refuse. If the business suspects the coin is counterfeit, it can check against the Determination: the diameter, weight, and design. The Mint publishes images and specifications. If in doubt, the business can return the coin to the Mint or the police.