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Rixter(Newbie)Newbie
8 Mar 2026

I have a forex trading account with a broker located overseas. The money in the account is denominated in AUD and I transfer AUD from my bank account here in Australia into my oversea's broking account. From my online platform I then trade forex. As my trading account is denominated in AUD my account balance automatically displays in AUD. My question is when I withdraw some of those AUD funds and transfer them back here to my bank account in Australia, for tax purposes do I declare the full amount as income or only a portion due to some of money was savings used to produce the income?

113 views
2 replies
113 views
2 replies

Most helpful response

Most helpful reply

KaraATO(Community Support)Community Support
9 Mar 2026

Hi @Rixter,


You wouldn't declare the full withdrawal amount as income. Only the portion that represents trading profit is assessable. Your original deposits (your capital) aren't taxable income.


Under Division 775 of the ITAA 1997, forex gains and losses are taxed when a forex realisation event happens. This means any gains and losses from your actual trades are what count for tax purposes - not the act of withdrawing money.


Even though your account shows everything in AUD, you're still trading foreign currency pairs, so each trade may create a forex gain or loss that must be calculated in AUD.


so, you can work out the profit component, I'd recommend keeping good records of your:

  • deposits
  • trades, and
  • withdrawals.

If you're still unsure, it would be best to see a registered tax agent to help you calculate your trading gains.

All replies

Most helpful reply

KaraATO(Community Support)Community Support
9 Mar 2026

Hi @Rixter,


You wouldn't declare the full withdrawal amount as income. Only the portion that represents trading profit is assessable. Your original deposits (your capital) aren't taxable income.


Under Division 775 of the ITAA 1997, forex gains and losses are taxed when a forex realisation event happens. This means any gains and losses from your actual trades are what count for tax purposes - not the act of withdrawing money.


Even though your account shows everything in AUD, you're still trading foreign currency pairs, so each trade may create a forex gain or loss that must be calculated in AUD.


so, you can work out the profit component, I'd recommend keeping good records of your:

  • deposits
  • trades, and
  • withdrawals.

If you're still unsure, it would be best to see a registered tax agent to help you calculate your trading gains.

Liked by Rixter
Rixter(Newbie)Newbie
30 Mar 2026

Hi @KaraATO ,

Thank you so much for you reply and information provided.

I have daily pdf reports which provide any account deposits made, account balance, trades filled, end of day trades still open and trades closed each day with the profits/losses.

I guess I need to devise a spreadsheet with the daily data so I can send it to my accountant instead of paying them for their time in the tedious task of collating it all from the pdf's.

Thanks you once again.

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Declaring forex trading income from money sent to my trading account held with overseas broker ? | ATO Community