Will Australia's five cent coin be on the chopping block as part of the 2016 Federal Budget?

Debate over the tiny piece of currency's obsolescence has been growing of late and the Budget on Tuesday night could be the day it dies, according to Adelaide Now.

It comes after revelations earlier this year that it now costs six cents to make each five cent piece.

Debate over the five cent coin's obsolescence has been growing of late and the Federal Budget on Tuesday night could be the day it dies after revelations it now costs six cents to make each coin

The gradual demise of the silver coin has also been put down to the increase of cashless payments due to credit and debit cards.

The Royal Australian Mint chief executive Ross MacDiamid forecast the demise of the five cent piece back in February saying the coin was 'dying a natural death' and estimated it would no longer be in production in the next five to 10 years.

'We've seen a halving of the demand for five cent pieces over the past five years and our expectation is that it will just simply progress, it's lost its utility, it will lose interest from the public,' Mr MacDiarmid said at the time.

Mr MacDiarmid anticipated a further 25 percent dip in demand of coin in the next three years attributed to the increase in debit and credits cards as well as the paywave technology.

Royal Australian Mint chief executive Ross MacDiamid forecast the demise of the five cent piece in February saying the coin was 'dying a natural death' and estimated it wouldn't be in production in the next 10 years

In 2014, Mr MacDiarmid told a Senate hearing it was 'probably an appropriate time for us to be doing a review' in the five cent coin's use.

The Mint regularly examines its production and distribution costs for all coins and provides reports to the Federal Government when required.

It is understood there are no current plans from the Mint to remove the five cent piece from production.

If the coin was axed as part of the Budget, its departure would not be immediate and would be phased out as the Mint stopped production.

Treasurer Scott Morrison will hand down his first Budget in Canberra on Tuesday night.