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An example to help you work out your foreign tax credit

Last updated 16 March 2007

Albert is an Australian resident and is not married. He previously lived in the United Kingdom and now receives a pension and dividend, interest and rental income from the United Kingdom. Albert worked for and was paid by an American company in the United States for 80 days during the year and by his Australian employer in Australia for the remainder of the year.

All foreign income, deductions and foreign tax paid must be converted to Australian dollars. The following table, Conversion to Australian dollars shows you how to do this. Ring the ATO to find out the exchange rates.

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