Jim Chalmers’ call on King Charles and the $5 bill noted

Jim Chalmers made the captain’s call to not have King Charles III on the $5 note, documents released under freedom of information laws have revealed.

Jim Chalmers made the decision to not have King Charles on the $5 note.

Jim Chalmers made the captain’s call to not have King Charles III on the $5 note, after the Reserve Bank ceded the decision to the Treasurer, documents released under freedom of information laws have revealed.

Dr Chalmers announced early this month that the Queen would be replaced with “a design honouring the culture and history of First Australians”, and that this decision had been made by the RBA, in consultation with him.

Treasurer Jim Chalmers. Picture: Gary Ramage

“This is a decision that they’ve taken, but I was consulted on it and I said that the government wouldn’t have a problem with them going down this path,” he said on February 2.

But in a letter dated October 7, a month after the Queen’s death, RBA governor Philip Lowe made it clear to Dr Chalmers that “whether or not the monarch’s portrait is on Australia’s banknotes is of national significance”, and was a decision best made by the Treasurer rather than the independent central bank.

“Under the Reserve Bank Act 1959, the Bank has responsibility for the printing and issuance of Australian banknotes,” Dr Lowe said in his letter.

“The bank recognises that whether or not the monarch‘s portrait is on Australia’s banknotes is of national significance. Accordingly, I am seeking the Australian government’s view on whether or not a portrait of King Charles lll should replace that of Queen Elizabeth II.

“If the government is of the view that the King’s portrait should be on the $5 banknote, then the bank will proceed … and seek an appropriate image from the palace. Alternatively, if the government’s view is that the monarch should no longer be on Australia’s banknotes, the bank will explore a new design that honours the culture and history of the First Australians.”

King Charles III. Picture: Getty Images

In a letter dated December 16, Dr Chalmers thanked the RBA for “the opportunity to provide the Australian government’s view on the design of Australia’s $5 banknote”.

“Of these two options presented by the bank, the government would be comfortable with a new design that honours the culture and history of First Australians, assuming a proper process for inclusive consultation is undertaken,” he wrote.

Following the announcement, Peter Dutton accused Anthony Albanese of being “central” to the decision to not have the new monarch on the $5 note. “There’s no question about this that it’s directed by the government and I think the Prime Minister should own up to it,” the Opposition Leader told 2GB radio at the time.

In a statement on Monday, Dr Chalmers again deflected responsibility to the central bank. “It was the Reserve Bank’s decision to make the next $5 banknote feature a design honouring the culture, history and heritage of First Australians,” he said. “In making the decision, the governor consulted the government and we said we would be comfortable with an Indigenous design following a consultation process.”

The Queen has featured on the $5 note since 1992, when a polymer version was issued. The original $5 paper note featured Joseph Banks, a botanist on Captain Cook’s 1768-71 expedition, and English-born 19th-century philanthropist Caroline Chisholm.