Document ID: chunk:federal_register_of_legislation:C2025C00029:section:6:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 6 (pt 4/22)
Character Range: 6950410–6953177

(a) CGT event C1 or C2 happens in relation to a *qualifying forex account that you hold at the time of the event; and
 (b) you have made a choice for retranslation for the account; and
 (c) the choice is in effect when the event happens;
disregard so much of any *capital gain or *capital loss you make as a result of the event as is attributable to a *currency exchange rate effect.
Note: For currency exchange rate effect, see section 775‑105.

775‑285  Retranslation of gains and losses relating to a qualifying forex account—forex realisation event 8

Forex realisation event 8
 (1) Forex realisation event 8 happens if:
 (a) you have made a choice for retranslation for a *qualifying forex account held by you; and
 (b) that choice was in effect throughout a continuous period (the retranslation period) consisting of:
 (i) an income year; or
 (ii) a particular part of an income year; and
 (c) either:
 (i) there is a positive retranslation amount for the account for the retranslation period (worked out under subsection (2)); or
 (ii) there is a negative retranslation amount for the account for the retranslation period (worked out under subsection (3)).

Retranslation amount
 (2) If the amount worked out using the formula in subsection (4) is a positive amount, that amount is a positive retranslation amount for the account for the retranslation period.
 (3) If the amount worked out using the formula in subsection (4) is a negative amount, that amount is a negative retranslation amount for the account for the retranslation period.
 (4) Work out an amount for the account for the retranslation period using the formula:
 (5) For the purposes of subsection (4), a debit balance is to be expressed as a negative amount (for example, a debit balance of $50,000 is to be expressed as$50,000).

Forex realisation gain
 (6) You make a forex realisation gain if there is a positive retranslation amount for the account for the retranslation period. The amount of the forex realisation gain is the positive retranslation amount.

Forex realisation loss
 (7) You make a forex realisation loss if there is a negative retranslation amount for the account for the retranslation period. The amount of the forex realisation loss is the negative retranslation amount.
 (8) For the purposes of subsection (7), reverse a negative amount (for example, a negative retranslation amount of$50,000 will become a forex realisation loss of $50,000).

Translation of foreign currency
 (9) For the purposes of the application of section 960‑50 to this section:
 (a) if a retranslation period for an account did not begin immediately after the end of another retranslation period for the account—the opening balance of the account for the first‑mentioned retranslation period is