Counterfeit Money Laws in Australia

Counterfeit Money Laws in Australia make it a serious criminal offense to manufacture, knowingly possess, or knowingly pass counterfeit money. Australia’s federal laws cover counterfeit Australian currency as well as certain counterfeit foreign currencies, and penalties can include lengthy prison sentences.

For a broader guide to counterfeit-currency legislation in different countries, visit the Counterfeit Laws homepage.

Understanding Counterfeit Money Laws in Australia

Australia’s primary federal legislation dealing with counterfeiting is the Crimes (Currency) Act 1981. The legislation creates offenses relating to making, passing, possessing, importing and exporting counterfeit money and also addresses equipment and materials associated with counterfeiting.

The Reserve Bank of Australia explains that the legislation applies to domestic and foreign currencies, meaning the law is not limited to counterfeit Australian dollar notes. State, territory and federal police are authorized under the legislation to seize and prosecute currency-related matters.

The seriousness of these offenses means that people should not treat counterfeit money as an ordinary payment dispute. If someone discovers that a banknote may be counterfeit, it should not be passed to another person or used to make a purchase.

Penalties for Counterfeit Money in Australia

Counterfeit Money Laws in Australia provide different maximum penalties depending on the conduct involved. The Crimes (Currency) Act 1981 distinguishes between making counterfeit money, knowingly passing it, possessing it, and possessing equipment intended to be used for counterfeiting.

Making Counterfeit Money

Under the federal legislation, a person must not make, or begin to make, counterfeit money. The maximum penalty for an individual is 14 years’ imprisonment. The legislation also provides a separate maximum penalty for a body corporate.

This provision can apply to the actual production of counterfeit currency as well as conduct that begins the process of making counterfeit money.

Knowingly Passing Counterfeit Money

A person must not knowingly pass counterfeit money. The maximum penalty for an individual for this offense is 12 years’ imprisonment.

The requirement that the person know the money is counterfeit is important. Someone may unknowingly receive a counterfeit banknote during an ordinary transaction. However, once a person knows or has reason to believe that a note is counterfeit, attempting to pass it on as genuine can create serious legal consequences.

Possessing Counterfeit Money

Australian law also makes it an offense to knowingly possess counterfeit money without lawful authority or a reasonable excuse. The maximum penalty for an individual is 10 years’ imprisonment.

The law therefore does not focus only on people who manufacture counterfeit currency. Possession can also become a criminal matter when the person knows the currency is counterfeit and does not have a lawful basis or reasonable excuse for possessing it.

Counterfeit Australian Banknotes

Australian banknotes use multiple security features designed to make counterfeiting more difficult and help members of the public identify genuine currency.

The Reserve Bank of Australia recommends checking a number of features when determining whether a banknote may be genuine. Depending on the banknote series and denomination, features can include a clear window, raised printing, microprint, fine-line patterns and features that can be seen under ultraviolet light.

The RBA recommends comparing a suspicious note with another banknote known to be genuine and checking more than one security feature rather than relying on a single characteristic.

Official guidance from the Reserve Bank of Australia Counterfeit Detection Guide provides additional information about Australian banknote security features.

What to Do If You Receive Counterfeit Money in Australia

Counterfeit Money Laws in Australia are particularly important when an ordinary consumer or business unexpectedly receives a suspicious banknote.

If you believe that a banknote may be counterfeit, the Reserve Bank of Australia recommends the following basic procedure:

• Handle the suspected counterfeit banknote as little as possible.
• Place it in an envelope or another suitable covering.
• Record information about how and when the note came into your possession.
• Report the matter immediately to local state or federal police.

The RBA also states that members of the public are within their rights to refuse a banknote when they have concerns that it may be counterfeit. Personal safety should always take priority when dealing with a suspicious transaction.

For further practical information about handling suspected counterfeit currency, see How Retailers Can Detect Counterfeit Money.

Can You Use a Counterfeit Banknote If You Did Not Make It?

Knowing who produced a counterfeit note is not the only issue under Australian law. The Crimes (Currency) Act also deals with possession and passing of counterfeit money.

If a person unknowingly receives a counterfeit banknote, they should not try to recover its value by spending the note elsewhere after discovering that it is counterfeit. The Reserve Bank specifically states that knowingly possessing counterfeit banknotes is an offense and that suspected counterfeit notes should be given to police.

Counterfeit banknotes have no monetary value. If a submitted note is determined to be counterfeit, the person who received it will not be reimbursed. If the note is examined and found to be genuine, the full value can be returned.

How Businesses Should Handle Suspected Counterfeit Currency

Businesses that regularly accept cash should have a clear procedure for dealing with suspicious banknotes. Cashiers and employees can be trained to recognize the security features of Australian currency and to avoid putting suspected counterfeit notes back into circulation.

Employees should also understand that personal safety comes first. If a customer becomes aggressive or a situation appears dangerous, staff should not attempt to physically recover a banknote or confront the person. Police should be contacted when appropriate.

Businesses can also review our guide to Counterfeit Money Prevention for Businesses for broader cash-handling and prevention information.

Counterfeit Money and Australian Police

Counterfeit currency is dealt with through cooperation between Australian law-enforcement agencies and the Reserve Bank of Australia. The RBA explains that state, territory and federal police have authority under the Crimes (Currency) Act 1981 to seize and prosecute currency-related matters.

Suspected counterfeit banknotes submitted to police can be examined through the appropriate currency examination process. The Reserve Bank also works with the Australian Federal Police and other law-enforcement agencies by providing counterfeit examination services, training and expert assistance.

Importing and Exporting Counterfeit Currency

Australian counterfeit-currency law also covers activities involving the importation and exportation of counterfeit money. Counterfeit currency can therefore create legal problems even when it is not manufactured inside Australia.

Anyone bringing suspicious currency into Australia should not assume that possession becomes lawful simply because the currency was obtained overseas. The circumstances surrounding possession, knowledge and the purpose for which the currency is held can be important in determining the applicable offense.

Reproducing Australian Banknotes

Counterfeit Money Laws in Australia also intersect with rules governing the reproduction of banknotes. The Reserve Bank of Australia states that legislation relevant to reproducing Australian banknotes includes the Crimes (Currency) Act 1981 and the Copyright Act 1968.

The RBA provides reproduction guidelines for people who want to create images or reproductions of Australian banknotes. These guidelines are intended to reduce the risk of non-compliance, although the RBA states that they do not constitute formal legal advice.

Anyone intending to reproduce Australian currency images for advertising, education, entertainment, publishing or another purpose should check the current requirements rather than assuming that any reproduction is automatically permitted.

How to Check an Australian Banknote

The Reserve Bank’s guidance provides several practical ways to check Australian banknotes. Genuine polymer notes have distinctive physical and security characteristics that can be examined without specialized equipment.

• Feel: Genuine notes have distinctive polymer characteristics and raised printing.
• Look: Check the clear window, fine details and printed security features.
• Check: Look for features such as microprint and other security elements appropriate to the particular note.
• Compare: Compare the suspicious note with one known to be genuine.

No single visual check should necessarily be treated as conclusive. A combination of security features provides a more reliable way to identify a potentially counterfeit banknote.

What Happens to Counterfeit Money After It Is Reported?

Counterfeit currency reported to Australian authorities can be examined to determine whether it is genuine or counterfeit. The Reserve Bank explains that counterfeit notes have no value and are not reimbursed. Genuine notes that were initially suspected of being counterfeit can be returned to their owner after examination.

Counterfeit currency that is confirmed as fake is removed from circulation rather than returned to ordinary use. The Australian Federal Police and Reserve Bank have procedures for the examination and destruction of counterfeit currency.

Official Sources for Australian Counterfeit Currency Law

The Crimes (Currency) Act 1981 is the key federal legislation covering many counterfeit-currency offenses in Australia. The Reserve Bank of Australia legislation guidance summarizes the relevant offenses and penalties and provides links to further information.

The Reserve Bank’s official Suspect Banknotes guidance explains what members of the public should do when they believe they have received a counterfeit note.

Key Facts About Counterfeit Money Laws in Australia

Counterfeit Money Laws in Australia impose significant penalties for activities involving fake currency. Under the federal Crimes (Currency) Act 1981, making counterfeit money can carry a maximum penalty of 14 years’ imprisonment for an individual, knowingly passing counterfeit money can carry up to 12 years, and knowingly possessing counterfeit money can carry up to 10 years.

For ordinary consumers, the most important practical step is not to pass a suspected counterfeit banknote to another person. Instead, handle it as little as possible, record information about how it was received, and report it to the police.

Counterfeit currency laws can change and individual cases may involve additional legal issues. This article provides general legal information and should not be treated as legal advice for a particular case. Anyone facing an investigation or prosecution should obtain advice from a qualified Australian legal professional.