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vonsche(Enthusiast)Enthusiast
3 Nov 2024

Which average exchange rate can I use to convert my overseas rental/ income and expenses into AUD? Monthly or financial year average rates?

Or do I have to use the spot rates for each transaction? If I use the spot rate that will be a lot of transactions in need to convert.

Could someone please clarify when I can use monthly or financial year average rates and when it is mandatory to use the actual date conversion rate for overseas rental income and deductions/ expenses?

I have been told different information from ATO and tax agents and need some clarification on it please.

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sydauthor(Master)Master
3 Nov 2024

Presumably you’ve read the information and tax rulings on this page?


https://www.ato.gov.au/businesses-and-organisations/corporate-tax-measures-and-assurance/foreign-exchange-gains-and-losses/in-detail/general-information-on-average-rates

vonsche(Enthusiast)Enthusiast
3 Nov 2024

Yes I have read this. And all the other article about translation of foreign currency rental income and expenses.

Liked by sydauthor
KylieATO(Community Support)Community Support
4 Nov 2024

Hi @vonsche,


You can use the average rate as long as it's reasonable for the period, so no big fluctuations in that time. If there is then you should use the rate on the applicable day.

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When can I use the ato average conversion rate | ATO Community