{"id":"F2018L00724","name":"Goods and Services Tax: Foreign Currency Conversion Determination 2018","slug":"goods-and-services-tax-foreign-currency-conversion-determination-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":100099,"registerId":"commonwealth-F2018L00724-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1. Name of determination","sectionType":"part","heading":"1. Name of determination","content":"## 1. Name of determination\n\nThis determination is the Goods and Services Tax: Foreign Currency Conversion Determination 2018.","sortOrder":0},{"sectionNumber":"2. Commencement","sectionType":"part","heading":"2. Commencement","content":"## 2. Commencement\n\nThis determination commences on 1 July 2018.","sortOrder":1},{"sectionNumber":"3. Repeal of previous determination","sectionType":"part","heading":"3. Repeal of previous determination","content":"## 3. Repeal of previous determination\n\nThis determination repeals and replaces the Goods and Services Tax: Foreign Currency Conversion Determination (No. 1) 2017 (the previous determination) - F2017L00845, registered on 30 June 2017.","sortOrder":2},{"sectionNumber":"4. Application","sectionType":"part","heading":"4. Application","content":"## 4. Application\n\nThis determination applies to an entity that works out the value of a taxable supply in Australian currency using the method in section 5, because an amount of the consideration for the supply is expressed in a foreign currency.","sortOrder":3},{"sectionNumber":"5. Manner in which an amount of consider","sectionType":"part","heading":"5. Manner in which an amount of consideration for the supply is worked out","content":"## 5. Manner in which an amount of consideration for the supply is worked out\n\nYou can convert the amount of consideration expressed in a foreign currency using the following formula:\n\n```html\n

amount expressed in a foreign currency

x

1

your particular exchange rate on the conversion day

\n```\n\nYou must use your particular exchange rate consistently.","sortOrder":4},{"sectionNumber":"6. Definitions","sectionType":"part","heading":"6. Definitions","content":"## 6. Definitions\n\nagreed rate means a particular rate agreed to between a supplier and a registered recipient. The agreed rate only applies for supplies made under the agreement and for the period of the agreement. Where the supplier and recipient are associates, the agreed rate must reflect the rate agreed to by parties dealing at arm's length.\n\nconversion day is the date you use to convert foreign currency into Australian currency under this determination:\n\n(a) when you account for GST on a basis other than cash your conversion day is the earlier of:\n\n(i) the day on which any of the consideration is received for the supply (the receipt date); or\n\n(ii) the transaction date or the invoice date (whichever you have chosen).\n\n(b) when you account for GST on a cash basis, your conversion day is:\n\n(i) the transaction date; or\n\n(ii) the invoice date; or\n\n(iii) the day on which any of the consideration is received for the supply.\n\n(c) if you are a non\\-resident that is not a limited registration entity, and you are making inbound intangible consumer supplies, offshore supplies of low value goods, or both, your conversion day is:\n\n (i) a day specified in either paragraphs (a) or (b) of this definition for any types of supplies that you make (including inbound intangible consumer supplies or offshore supplies of low value goods); or\n (ii) for your inbound intangible consumer supplies, offshore supplies of low value goods, or both, the final day of the relevant tax period in which GST is payable (in which case, the conversion day for your other types of supplies is the day specified in either paragraphs (a) or (b) of this definition).\n\n(d) if you are a non-resident that is a limited registration entity, your conversion day is:\n\n (i) a day specified in either paragraphs (a) or (b) of this definition; or\n (ii) the final day of the relevant tax period in which GST is payable on your supplies.\n\nexchange rate means the unit of foreign currency per Australian dollar.\n\nforeign currency means a currency other than Australian currency.\n\nforeign exchange organisation means an organisation that provides exchange rates publicly.\n\nRBA business day means a day that the head office of the Reserve Bank of Australia is open for business.\n\nRBA rate means the foreign exchange rate specified by the Reserve Bank of Australia. When you work out the consideration on a conversion day:\n\n (a) that is an RBA business day, then the RBA rate is the unit of foreign currency per $A specified by the RBA as the 4:00pm Australian Eastern time rate on that RBA business day or previous RBA business day, and\n (b) that is not an RBA business day, then the RBA rate is the unit of foreign currency per $A specified by the RBA as the 4:00pm Australian Eastern time rate of the previous RBA business day.\n\nReserve Bank of Australia means the body corporate continued in existence under the Reserve Bank Act 1959.\n\ntransaction date means the date you use for foreign currency conversion in your accounting system under the relevant Accounting Standard.\n\nyour particular exchange rate is one of the following:\n\n (a) the RBA rate, or\n (b) a rate published by a foreign exchange organisation, or\n (c) an agreed rate, or\n (d) for taxable supplies of offshore supplies of low value goods a rate chosen under Goods and Services Tax: Foreign Currency (Customs Value of Low Value Goods) Determination 2018.\n\nOther expressions in this determination have the same meaning as in the GST Act.","sortOrder":5}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument expressly repeals and replaces the 2017 determination but, on its face, continues to apply where consideration is expressed in a foreign currency and prescribes the conversion method, conversion day rules and acceptable rates. The text does not indicate an expansion or narrowing of the classes of supplies or entities covered beyond restatement and specified procedural rules (see commencement, repeal and application provisions, and sections 5–6)."},"complexity_factors":["Multiple conversion‑day rules with conditional triggers for cash basis, non‑cash basis, non‑residents and limited registration entities (section 6 definition of conversion day).","Several options for the ‘particular exchange rate’ (RBA rate, published rate, agreed rate, or special low‑value goods rate) requiring a policy choice by the entity (sections 5 and 6).","Consistency obligation to use the chosen particular exchange rate for conversions (section 5), raising recordkeeping and systems mapping requirements.","RBA rate timing rule (4:00pm AET on the business day or previous RBA business day) introduces calendar/business‑day logic (section 6, RBA rate definition).","Agreed‑rate arm’s‑length requirement where supplier and recipient are associates imposes transfer‑pricing like constraint (section 6, agreed rate).","Interaction with external standards and instruments — the relevant Accounting Standard for transaction date and a separate determination for low value goods — increases cross‑instrument compliance (section 6)."],"plain_english_summary":"This determination fixes how to convert a foreign‑currency amount of GST consideration into Australian dollars: multiply the foreign amount by 1 divided by your chosen “particular exchange rate” and use that rate consistently. Acceptable rates include the RBA rate, a published foreign‑exchange rate, an agreed rate, or a specified low‑value‑goods rate.\n\nIt defines the “conversion day” (different rules for cash/non‑cash accounting and for non‑resident suppliers) and sets RBA timing. It affects suppliers and GST‑registered recipients who price or account in foreign currency."},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This is a straightforward replacement determination that maintains the same scope as its 2017 predecessor. It updates the rules for foreign currency conversion for GST purposes without expanding into new areas. The inclusion of non-resident provisions for digital services and low-value goods reflects existing legislative frameworks rather than scope creep."},"complexity_factors":["Multiple nested definitions with cross-references (e.g., 'conversion day' has four sub-paragraphs with internal references to paragraphs (a) and (b))","Conditional logic based on accounting method (cash vs non-cash basis)","Special carve-outs for non-resident entities with different registration statuses (limited vs non-limited registration)","Specific reference to another determination for low-value goods (cross-reference to Customs Value determination)","Technical accounting terminology requiring external knowledge (Accounting Standards, tax periods, inbound intangible consumer supplies)","Time-specific rules (4:00pm Australian Eastern time, RBA business days)"],"plain_english_summary":"This determination tells Australian businesses how to convert foreign-currency prices into Australian dollars for GST purposes. It applies to Australian and non‑resident suppliers whose supplies are priced in foreign currency, sets allowable exchange‑rate methods (RBA, a foreign-exchange provider, or an agreed rate), requires consistent use of the chosen method, and fixes which date’s rate to use based on accounting method. It prevents cherry‑picking rates while allowing practical flexibility."}},"importantCases":[],"_links":{"self":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018","history":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018/history","analysis":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018/analysis","conflicts":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018/conflicts","importantCases":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018/important-cases","documents":"/api/acts/goods-and-services-tax-foreign-currency-conversion-determination-2018/documents"}}