The Royal Australian Mint has defended the design of the coins, which mark 100 years since Queen Elizabeth II's birth.
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The $5 (£2.56) and 50 cent silver coins, created to commemorate the centenary of the Queen's birth, were released in an online ballot that closed on Wednesday.
"That's got to be the most unpleasant portrait on a coin," said one of several people who reacted negatively online. The Royal Australian Mint defended the portrait, saying: "Our coin images don't always capture the full beauty of a design once it's etched in metal."
Queen Elizabeth II died in 2022 at the age of 96 and was the UK's longest serving monarch.
"There's a reason most portraits are from the side. Looks like she just ran into a wall," one person commented underneath a Facebook post from the mint.
"If I saw that face without the hairdo and pearls, would never guess who it was meant to be," another said.
Comparisons have been made with various TV characters, including Mrs Doubtfire - the beloved fictional housekeeper in the comedy film of the same name, played by the late Robin Williams.
Other people were more positive about the design, which was created by one of the mint's artists.
"Awesome. I'm glad they put something out to do with Queen Elizabeth II, she deserves to have Recognition In a Special Way," one user wrote on social media.
"Please pick me for one of these coins," said another. One woman living in the US commented that it "looks like a beautiful coin".
Despite the criticism, collectors reported that the ballot was fully subscribed.
Australian media, quoting a spokesperson for the Royal Australian Mint, said the silver proof coins had sold out, and there were limited stocks left in their contact centre and shop.
According to the mint's website, it created 30,000 of the 50c coins and 5,000 of the $5 - all of which are collector's items and will not enter general public
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