Australia first issued a circulating polymer banknote in 1988.
The Reserve Bank of Australia released a commemorative $10 note made from polymer in January 1988, marking the bicentenary of European settlement. It was the first banknote made from a thin polypropylene-based polymer substrate to circulate as legal tender.
Polymer notes were developed to improve durability and security. They resist tearing and moisture better than traditional cotton-paper notes, and their transparent windows and specialized features can make counterfeiting more difficult. Australia subsequently moved its regular banknote series to polymer, beginning with the $5 note in 1992.
Polymer is sometimes confused with plastic-coated paper. A true polymer banknote uses a synthetic polymer substrate throughout its main body, rather than ordinary paper with a surface coating. Many countries later adopted the technology, including Canada, New Zealand and the United Kingdom.