The Australian Taxation Office (ATO) updated its guidance on foreign exchange rates, including the monthly foreign exchange rates for the 2024-2025 income year, which starts from 1 July 2024 to 30 June 2025.
All foreign income, deductions, and foreign tax paid must be translated (converted) to Australian dollars before including it in one’s return. There are rules about which exchange rate to use. Generally, these require amounts to be converted at the exchange rate prevailing at the time of a transaction, or at an average rate.
It should be noted that the ATO has used the exchange rates from the Reserve Bank of Australia from 1 January 2020.
