She’s the only monarch the vast majority of Australians have ever known. How will Queen Elizabeth II’s death affect Australia, and the economy in particular?
Queen Elizabeth II has been on the throne for more than 70 years, longer than any British monarch. But her time will inevitably come to an end, an event that will surely send shockwaves through world stock markets and the global economy.
But how will it affect the Australian economy specifically?
Read: How is inflation calculated?
Fortunately, AMP Capital chief economist Shane Oliver told Money the Queen’s death will be barely noticeable initially, at least economically.
“[It] may cause a brief dip in consumer confidence in the UK, but it would likely be short-lived assuming there is a smooth transition to a new monarch,” he says.
“I doubt it would be enough to show up as a significant economic impact. It’s hard to see much impact in Australia.”
Read: Is the ATO gunning for you this year?
King Charles on money
One of the first changes that may become apparent in Australia is the appearance of King Charles on money.
Royal protocol states that heir apparent Charles, Prince of Wales, will be crowned king 24 hours after the death of the Queen, flags will be returned to full mast, and Prince William will take on the title of Prince of Wales.
Soon after this change, Charles’ likeness will begin appearing on notes and coins, slowly replacing the Queen. The changeover will be gradual and will likely take many years, if not decades.
Money featuring Queen Elizabeth’s likeness will likely become collectible items and people may begin to hoard this money in the hopes that will increase in value.
Read: Four habits of frugal people
Push for a republic
While the economic effects of the Queen’s death would be minimal at first, longer-term threats to economic stability may result.
The likely renewed push for Australia to become a republic has the potential to make the stock market nervous, which can affect superannuation and interest rates.
The Australian Republican Movement (ARM) has already proposed a new model it wishes to be enacted upon the Queen’s passing.
The movement claims 73 per cent of Australians would vote for this new model if it were put to them in a referendum.
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