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Foreign Currency Accounts / Transferring to Australia

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Newbie

Views 1306

Replies 4

Hi,

 

Quite confused on this topic so appreciate any assistance!

 

I am an Australian expat living in the USA. I have accumulated a few years of income etc in a US bank account and looking to transfer it home to Australia. Do I need to be conscious of forex gains upon transfer? I am over the $250k limited election so I don't qualify for that exception.

 

Specifically, do forex gains/losses only apply if I am an Australian tax resident? I am currently a US tax resident. 

 

Thank you

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Community Moderator

Replies 1

Hi @jonato89

 

Thanks for your post.

 

This is a question that gets asked regularly in our Community. You can check out a few threads here:

 

Hope this helps.

 

Thanks, ChrisR

4 REPLIES 4

Newbie

Replies 2

Really appreciate any help here! Thank you! 

Most helpful response

Community Moderator

Replies 1

Hi @jonato89

 

Thanks for your post.

 

This is a question that gets asked regularly in our Community. You can check out a few threads here:

 

Hope this helps.

 

Thanks, ChrisR

Newbie

Replies 0

Thanks Chris, these threads are all very helpful!

However, to be even more specific, as a non-resident for Australian tax purposes, would the forex gains or losses associated with moving foreign-denominated currency into Australia, under the TOFA rules, qualify as Australian-sourced income and trigger the need to lodge an Australian tax return.

Note: this transfer is not forex trading related; solely to move personal funds back to Australia.
Note: no other Australian sourced income, so would otherwise not be lodging an Australian tax return.

ATO Certified Response

Community Moderator

Replies 0

Hi @jonato89

 

Thanks for your reply.

 

From what you have advised, it doesn't sound like you would have anything to declare. As mentioned previously, this is a common question in our Community. Here are some more threads that you can check out:

 

Our responses to the posts in the above threads seek to compare a transfer of money from an overseas bank account to the exchanging of currencies for profit making purposes. Your situation sounds like the former, not the latter.

 

If you're concerned due to the large sum that you are looking at transferring, you can request an early engagement discussion with us. For more information about our early engagement for advice service, refer to our website.

 

Hope this helps.

 

Thanks, ChrisR