INCOME TAX ASSESSMENT ACT 1997 - SECT 118.55 Foreign currency hedging gains and losses

INCOME TAX ASSESSMENT ACT 1997 - SECT 118.55

    A * capital gain or * capital loss you make from a contract you entered into solely to reduce the risk of financial loss you may suffer from currency exchange rate fluctuations is disregarded if the contract relates to:

  (a)   a liability you have to make a payment under another contract; or

  (b)   a * CGT asset that is a right you * acquired before 20   September 1985 to receive money under another contract.