Foreign Exchange Gains/Losses

Question

 · Accepted Answer

BlakeATO · Answer

Correct. Bank accounts in foreign currencies are CGT assets, and if the combined balance is above $250k, the balance test exemption does not apply. However, if the forex event is of a private or domestic nature, forex measures don't apply. This is because forex is about income-producing affairs (business and revenue) rather than for 'holding' for domestic or personal affairs. It's like holding any other capital asset for personal-use. This means it will depend on the intention of holding the foreign deposit account. You can read about personal use assets and foreign exchange gains and losses on our website.

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