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The image – which is the first update to Australia’s currency in 20 years – will be on the country’s dollar and cent denominations from 2019.
Australian governor-general Sir Peter Cosgrov unveiled the new design, by Jody Clark from the Royal Mint.
He said: ”This new effigy will be a new image for a new era – continuing to tell the story of a reign and lifetime.”
It is the sixth version of the Queen’s portrait to feature on Australian currency.
The elegant portrait depicts the right side of the Queen’s face, with the 92-year-old monarch wearing a diamond diadem crown, Victorian coronation necklace and drop earrings.
The portrait includes the Queen’s shoulders, marking a difference to UK coins which only show the monarch’s neck and head.
The new images replace the previous design by British sculptor Ian Rank-Broadley that was introduced on Australian coins in 1998.
Ross MacDiarmid, chief executive of the Royal Australian Mint, said: “The transition to a new effigy on all Australian coinage will begin in 2019 and continue into 2020.
“Coins carrying previous portraits of the Queen will remain in circulation.”
The latest image of the Queen on UK coins, also designed by Mr Clark, was released in 2015.
It comes as the Queen is enjoying her annual summer holiday on the Balmoral estate in Scotland.
But the Scottish break has not stopped the 92-year-old from keeping to a busy schedule.
The monarch looked radiant in blue as she attended the Braemar Gathering on Saturday. Appearing to enjoy the outing, the Queen smiled and clapped as she watched the Highland Games.
Prince Charles and Princess Anne joined the Queen at the event where the monarch opened the Duke of Rothesay Highland Games Pavilion.
And the Queen stepped out again yesterday to go to church. She looked in good spirits as she was photographed being driven to Crathie Kirk in Aberdeenshire.
It is a tradition for the Queen to holiday in Balmoral during the summer with other members of the royal family every year.
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