The RBA said the new design “honours the culture and history of the First Australians”, reports Xinhua news agency
It comes after a review of the design following the death of Queen Elizabeth II, whose portrait had featured on the note.
The RBA said the decision follows consultation with the Australian government, which supports this change.
The other side of the polymer note will continue to feature an image of the Australian Parliament.
“The bank will consult with First Australians in designing the A$5 banknote,” the RBA said in a statement.
“The new banknote will take a number of years to be designed and printed. In the meantime, the current A$5 banknote will continue to be issued.”
Every other Australian note features the portrait of an Australian who has made a defining contribution to the country, including Indigenous author, musician, inventor and activist David Unaipon on the A$50 note.