When converting foreign currency amounts to AUD for ATO purposes, should I use the reference rate or the market rate?
If the market rate is not readily available, what type of supporting evidence can be provided to the ATO as proof of the conversion rate used?
Hi @bumblebee2,
You can use either the Reserve Bank of Australia (RBA) exchange rate or an average rate when converting foreign currency to AUD for tax purposes.
For most transactions, use the exchange rate from the date the transaction occurred. You can also choose to use an average rate for a period you select (up to 12 months), but it must reasonably approximate what you'd get using daily rates.
Keep records of the exchange rate used and the source of your rates. This documentation will support your tax return if we need to verify the conversion rates you've used.
15 Apr 2026 · 4 min read time
15 Apr 2026 · 8 min read time
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