You can still get a full $10 for a note that’s torn if one requirement is met, and thousands of Aussies have cashed in on millions of dollars worth of damaged banknotes in the past year.

If you have a ripped note, the Reserve Bank of Australia (RBA) will pay out a portion of what is remaining unless you have more than 80 per cent of the total note, like the one pictured here.You can get the full $10 for this. However, the policy is also true on the flipside, with those who have less than 20 per cent of the note unable to claim anything back, under the incomplete note policy.

It’s not likely local businesses will accept damaged currency but Aussies are still cashing in. The damaged banknotes facility processed about 8,900 claims in the 2022/2023 financial year and paid out $14.3 million, the RBA told Yahoo Finance.

So, how can you claim back money on a damaged note? And, aside from the size, are there any reasons you would be rejected? Here’s everything you need to know, including some of the tricky requirements and legal reasons for pushback.

Do you have a money story? Contact belinda.grantgeary@yahooinc.com

How can you claim back cash for a damaged banknote?

The RBA allows claims on incomplete, badly damaged or contaminated bank notes when a person has “unwittingly come into possession” of them.

It could be hard to prove but it is actually illegal under the Crimes (Currency) Act 1981 to intentionally deface, disfigure, mutilate or destroy Aussie bank notes without the consent of the treasurer, people authorised by them or certain RBA staff.

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If you’re feeling the cost-of-living pinch, it’s not recommended you go searching for broken notes in the rubbish - they’re not eligible if they’re found in landfill or recycling plants, or if they’ve been bought or sold.

To make your claim, you need to put the note in a sealed bag with details of the “contaminant written on the outside” and a signed claim form. This can be submitted to your financial institution who will forward it to the National Banknote Site (NBS) for assessment.

If you’ve found the note, the bank actually stipulates you need to take “reasonable steps” to contact the person who may own the notes, which can include reporting it to the police and seeing if anyone claims it or checking with the owner of the property you found it on.