It depends on currency charged to your PayPal account. I have some in AUD and some in other currencies for online purchase from overseas. However, when paying by PayPal, you can choose to pay in AUD if you want.Thanks cove. Woow, you have this all worked out.
One more question if I may.... is a Paypal transaction counted as a transaction inside or outside of Australia? If you use Visa for outside you get 1.5 vs Amex 1.25. Since when it got so tricky?