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Off with her head

The move follows a debate last year about the country becoming a republic, a proposal overwhelmingly rejected in a referendum in November.

No-one was available for comment from the Reserve Bank of Australia, but the paper said there were no plans to remove the monarch from Australian coins.

Greg Barnes, of the Australian Republican Movement, said: "This step demonstrates yet again the vanishing symbol and irrelevance of the British monarchy to Australians.

'Republican mood'

"There is no doubt that despite last year's republican defeat, the mood of the nation is republican."

Prime Minister John Howard, who fought to keep the Queen as Australia's sovereign head, was believed to be unhappy, although a spokesman said he would not interfere.

Polls before the referendum last year showed the country was in favour of becoming a republic.

The defeat was blamed on divisions over how to elect an Australian president.

Under the republican proposal, a president would have been elected by members of both houses of parliament, and not in a direct election.

A widespread distrust of politicians - as much as strong pro-monarchist sentiment - was seen as fuelling the no vote.

The Queen may even be relieved that her image from the $5 note is going.

Last year she appeared with vibrant red hair cut in a short bob in an advertising campaign.

Her picture - taken from the $5 note - appeared across Australia in a new advert for hair colour by international hair care and cosmetics group Wella.