THE five-cent coin should be scrapped because it is too expensive to make and a nuisance, says the Royal Australian Mint - and the federal government is seriously considering dumping it.

The Sun-Herald can reveal the government has received a confidential brief that shows it costs more than five cents to make each coin because of rising commodity prices.

"Increasingly redundant" ... the 5 cent coin.

The decision to phase out the coin rests with the Assistant Treasurer, Bill Shorten, but he is worried about what the move would mean for charities, the principal recipients of five- and 10-cent coin donations. The last time Australia abandoned a denomination was in the early 1990s, when one- and two-cent coins were dumped.

A spokesman for Mr Shorten confirmed he was considering abandoning the coin after receiving the Mint's advice.