Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 775.165

Exception--foreign currency acquired before the applicable commencement date

  (1)   A * forex realisation gain or * forex realisation loss you make on the disposal of * foreign currency as a result of forex realisation event 1 is disregarded if:

  (a)   the foreign currency was acquired before the applicable commencement date; and

  (b)   you have not made an election under section   775 - 150.

For the purposes of paragraph   (a), the time of acquisition is worked out under Division   109.

Note:   For applicable commencement date , see section   775 - 155.

Exception--right acquired before the applicable commencement date

  (2)   A * forex realisation gain or * forex realisation loss you make as a result of forex realisation event 1, 2 or 5 happening to a right or a part of a right is disregarded if:

  (a)   the right, or the part of the right;

  (i)   was acquired before the applicable commencement date; or

  (ii)   arose under an eligible contract (within the meaning of the former Division   3B of Part   III of the Income Tax Assessment Act 1936 ) that was entered into before the applicable commencement date; and

  (b)   you have not made an election under section   775 - 150.

For the purposes of subparagraph   (a)(i), the time of acquisition is worked out under Division   109.

Note:   For applicable commencement date , see section   775 - 155.

  (3)   If:

  (a)   at a particular time (the extension time ) on or after the applicable commencement date and under a contract that was entered into before the applicable commencement date, the period for which money has been lent is extended; and

  (b)   either:

  (i)   the contract is separate from the original loan contract; or

  (ii)   the extension amounts to a variation of the original loan contract;

subparagraph   (2)(a)(ii) does not apply to a right, or a part of a right, that arises after the extension time and relates to the loan.

Note:   For applicable commencement date , see section   775 - 155.

Exception--obligation incurred before the applicable commencement date

  (4)   A * forex realisation gain or * forex realisation loss you make as a result of forex realisation event 3 or 4 happening to an obligation or a part of an obligation is disregarded if:

  (a)   either:

  (i)   you incurred the obligation, or the part of the obligation, before the applicable commencement date; or

  (ii)   the obligation, or the part of the obligation, arose under an eligible contract (within the meaning of the former Division   3B of Part   III of the Income Tax Assessment Act 1936 ) that was entered into before the applicable commencement date; and

  (b)   you have not made an election under section   775 - 150.

Note:   For applicable commencement date , see section   775 - 155.

  (5)   If:

  (a)   at a particular time (the extension time ) on or after the applicable commencement date and under a contract that was entered into before the applicable commencement date, the period for which money has been lent is extended; and

  (b)   either:

  (i)   the contract is separate from the original loan contract; or

  (ii)   the extension amounts to a variation of the original loan contract;

subparagraph   (4)(a)(ii) does not apply to an obligation, or a part of an obligation, that arises after the extension time and relates to the loan.

Note:   For applicable commencement date , see section   775 - 155.