Converting foreign income to Australian dollars

You must convert all foreign income, deductions and foreign tax paid to Australian dollars for tax purposes.

There are two ways of doing this. Depending on your circumstances, you can use:

• the exchange rates prevailing at specific times - refer to Foreign exchange (forex): the general translation rule
• an average exchange rate - refer to Foreign exchange (forex): general information on average rates.

For general information, refer to Foreign exchange (forex): overview. We publish foreign exchange rates monthly on our website - refer to Foreign exchange rates (average and daily rates). The Foreign income conversion calculator will assist you to convert foreign income into Australian dollars, using either a specific or an average rate of exchange for a range of countries.

More information

The government is continually reviewing international tax arrangements. For information on how potential international legislative changes may affect you, refer to New legislation.

If you need help in applying this information to your own situation, contact us by phone.