If you cut an Australian bank note in half, each of those halves are legal tender worth half of the face value of note.

According to the Reserve Bank of Australia, a bank note with a significant piece missing is classified as incomplete. These bank notes may not be full worth value because the Reserve Bank need to take into account the possibility that the pieces of the bank note may be presented for value separately. The Reserve Bank policy is for the value of each piece of a bank note to be proportional to the part of he bank note remaining. In this way the combined value for all the pieces presented should be the face value of the original bank note. The value of the incomplete banknotes is determined in this way. If less than 20% of the bank note is missing, full face value is paid. If between 20% and 80% is missing, value is paid in proportion with the percentage remaining, for example $5 value for half of a $10 banknote. If more than 80% of the banknote is missing, no value is paid.