Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 775 - Foreign currency gains and losses  

Subdivision 775-B - Realisation of forex gains or losses  

SECTION 775-145   Application of forex realisation events to currency and fungible rights and obligations  

775-145(1)    
Forex realisation event 1, 2 or 4 applies in relation to:

(a) * foreign currency; or

(b) a fungible right, or a part of a fungible right, to receive foreign currency; or

(c) a fungible obligation, or a part of a fungible obligation, to pay foreign currency;

on a first-in first-out basis.

775-145(2)    
The regulations may provide that any or all of forex realisation events 1, 2 and 4 apply, or apply in specified circumstances, to:

(a) * foreign currency; or

(b) a fungible right, or a part of a fungible right, to receive foreign currency; or

(c) a fungible obligation, or a part of a fungible obligation, to pay foreign currency;

on a weighted average basis (despite subsection (1)).

775-145(3)    
The circumstances that may be specified for the purposes of subsection (2) include the circumstance that you have made an election to use a weighted average basis.

775-145(4)    
Subsection (3) does not limit subsection (2).