Prior to 1959 the Commonwealth issued and printed its own money and had control of the printing of money.


However, after the 1959 Reserve Bank Act, the Reserve Bank was established as a standalone independent foreign Authorised Deposit-taking Institution (ADI), which took over the printing of money and lent the money it printed to the Commonwealth at interest.


So instead of the Commonwealth printing its own money, we have a foreign body corporate printing our money and lending it to the Commonwealth which the Commonwealth needs to pay back with interest.