Income Tax Assessment Act 1997

CHAPTER 4 - INTERNATIONAL ASPECTS OF INCOME TAX  

PART 4-5 - GENERAL  

Division 775 - Foreign currency gains and losses  

Guide to Division 775  

SECTION 775-5   What this Division is about  


Your assessable income includes a forex realisation gain you make as a result of a forex realisation event.

You can deduct a forex realisation loss that you make as a result of a forex realisation event.

There are 5 main types of forex realisation events:

  • (a) forex realisation event 1 happens if you dispose of foreign currency, or a right to receive foreign currency, to another entity;
  • (b) forex realisation event 2 happens if you cease to have a right to receive foreign currency (otherwise than because you disposed of the right to another entity);
  • (c) forex realisation event 3 happens if you cease to have an obligation to receive foreign currency;
  • (d) forex realisation event 4 happens if you cease to have an obligation to pay foreign currency;
  • (e) forex realisation event 5 happens if you cease to have a right to pay foreign currency.
  • There are special rules for certain short-term forex realisation gains and losses.

    You may choose roll-over relief for certain facility agreements.

    You may elect to receive concessional tax treatment for a qualifying forex account that passes the limited balance test.

    You may choose retranslation for a qualifying forex account.


     

    Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

    CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

    The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.