As an Australian, it also baffles me. We withdrew 1 and 2 cent coins from circulation in 1992, and prices are simply rounded to the nearest 5c when paying with cash. Maximum 3c difference per transaction, which averages out in the long run.
Anecdotally (as in I might be wrong :) I remember hearing at the time the 5c piece was phased out it was worth less than when the 1/2c pieces were originally released. NB I have put zero effort into thinking if that makes sense or is true. (edit - confirmed)
[ Edit ] - We also made every other coin smaller. It's always startling to get an Australian 50c coin - even though it's the same size as ours used to be. Our's is now smaller than the AU 20c.
https://en.wikipedia.org/wiki/Coins_of_the_New_Zealand_dolla...
In Canada as mentioned already in the comments we phased out the penny no more made after February 4, 2013.
But many business still today (Oct 2020) have items with prices ending in penny amounts. If you pay with cash it's rounded up or down but if you pay with debit, credit, or cheque the penny amount is used. Stupid because there's no incentive (ha pun!) for businesses to change (double pun!).