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 775-105   Currency exchange rate effect  

775-105(1)    
A currency exchange rate effect is:

(a) any currency exchange rate fluctuations; or

(b) a difference between:

(i) an expressly or implicitly agreed currency exchange rate for a future date or time; and

(ii) the applicable currency exchange rate at that date or time.

775-105(2)    
To work out whether there is a currency exchange rate effect and (if so), the extent of that effect, use whichever of the following translation rules is applicable to you:

(a) the translation rules in section 960-50 (the standard rules);

(b) the translation rules in section 960-80 (the functional currency rules).