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.