But be warned, due to differences in requirements for accounting and income tax consolidations, an accounting group with a non-AUD functional currency could be a different group for income tax purposes and not be able to access the tax functional currency rules.
Such an election is not available to all taxpayers though and even once an election has been made, an entity may cease to satisfy the requirements to maintain the election. This is particularly relevant in an era of cost-cutting as the type of financial report you lodge can dictate whether an election is effective.
There can also be some quirks as a result of the rules, particularly from a tax effect accounting perspective for AUD liabilities and payments. For example, let’s assume a company can adopt USD as a functional currency, that company still pays its employees in Australian dollars. Foreign exchange gains on payments to employees or local suppliers?
What about that other AUD liability in your books, current tax liability?