I will be declaring capital gains from my trading of stocks in the USA, which has been done in american brokerage accounts and always in USD. If I'm seeing this correctly the number they give is 0. You are right those rates are very high compared to the spot prices prevailing at the time. I would use the xe. I don't see how the ATO could argue with that. I would also give them a call and find out why their rates are so high?
They don't publish rates for fun as something that people can elect to use or ignore. Therefore I think they would argue with your approach and potentially impose penalties. Is it really worth the risk? However I can well imagine permission to use an average rate for high-volume small-amounts trades You've given us a link to the numbers, but not a link to where it says that you can must?
Still think he should give them a call and see what they have to say. He could save a lot of money if the sums are large. A large sale of shares should use exchange rate on day of transaction, the ATO says to use whichever is reasonable given the circumstances.
Alternatively, you can use appropriate exchange rates provided by a banking institution operating in Australia including, where relevant, the banking institution through which your foreign income is received. You can also use rates published by another reliable external source. The rate used and the source of rates should be kept with your records.
You need to work out your cost and your sales proceeds in AUD at the respective times. Can't just translate the used gain to aud.
The examples where an average rate is allowed are all regular payments pension, rent of the same or similar amount multiple times per year fortnightly, monthly — obviously using the average rate is a reasonable approximation. He shouldn't use an average rate at all. He should use a day rate a bank would give him on the dates he purchased and sold the shares.
Archive View Return to standard view. Daily and monthly rates here No average rates to be used here. The most important part is this:More...