The Australian Taxation Office (ATO) has updated its guidance on Monthly exchange rates for 1 July 2024 to 30 June 2025, including rates for January, February, and March 2025 on 2 April 2025.
According to the guidance of the main foreign exchange rates, all foreign income, deductions, and foreign taxes paid must be translated (converted) to Australian dollars before being included in the taxpayer’s returns.
There are rules about which exchange rate to use. The regulations mandate that amounts be converted using either the prevailing exchange rate at the time of the transaction or an average exchange rate.
Since 1 January 2020, the exchange rates from the Reserve Bank of Australia have been used. For daily foreign exchange rates, it is recommended to refer to the Reserve Bank of Australia – Exchange rates. If a foreign exchange rate for an unlisted currency is needed, any reasonable externally sourced exchange rate for that currency can be used.
