Hi @Matthew.D,
Here are some useful ATO webpages to get you started on how foreign exchange gains and losses are treated for tax purposes, including when foreign currency is converted back to Australian dollars:
- Foreign exchange gains and losses - explains when foreign exchange gains are assessable and when losses may be deductible, including for foreign currency bank accounts.
- Forex realisation events - outlines when a foreign exchange gain or loss is realised, such as when foreign currency is disposed of or converted.
Together, these explain how the tax treatment depends on whether the foreign currency and account were used in carrying on your business and whether any resulting loss is on revenue account.
Good luck with your studies.
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