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HOW DO YOU MAKE A GAIN OR LOSS ON YOUR FOREX ACCOUNTS

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23
May

Foreign exchange (Forex) gains and losses are subject to tax on "revenue" account, which means that gains are assessable and losses are deductible. Here, foreign gains are assessable when they are realised unless it is a gain of a domestic or private nature, for example when you go travelling abroad on trips or purchase goods for personal use. Forex gains and losses like ordinary income, which is at a higher rate than the capital gains tax for most earners.
Part of this assessment would be to determine whether these actions are within the ordinary course of a business that you are carrying on. If so, then they should be included in the expenses for business income or losses in the "Supplementary Tax Return". If not, then the ATO instructions to the supplementary return require that foreign exchange gains should be revealed as other income, with foreign exchange losses to be revealed as other deductions.


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