don't know if this can be answered here but thought I would try my luck anyway. During the previous financial year I transferred some of my money into a foreign currency account (USD) and then some months later transferred the money back into AUD which created a loss.

I'm currently filling out my tax return now and I am confused about where to enter this loss. Do I enter into my tax as a capital gain/loss event? or do I enter it under "D15 Other Deductions"?

D15 Other Deductions says:

Did you have any other expenses that you have not been able to claim as deductions at items D1 to D14 or elsewhere on your tax return?

You may claim at this item:

  • election expenses for local, territory, state or federal candidates

  • income protection, sickness and accident insurance premiums

  • foreign exchange losses
The help file for this section is fairly confusing which is why I am having trouble. If anyone can answer this for me I would be most appreciative. At the moment I think it would be a capital gains/loss event.


The information the help section gives for D15 is as follows:

Foreign exchange losses
Unless you carried on a business and have included all your foreign exchange losses (forex losses) in calculating your business net income or loss at item 15, your deductible forex losses must be shown at this item (except any foreign source forex losses that you have included at item 20). Show any assessable foreign exchange gains (forex gains) at item 24.

Losses attributable to a fluctuation in a currency exchange rate or to an agreed exchange rate differing from an actual exchange rate are brought to account when they are realised. This is when you:

■ dispose of either foreign currency, or a right to such currency

■ cease to have a right to receive or pay foreign currency, or

■ cease to have an obligation to pay or receive foreign currency.

Some forex losses are not deductible, for example, forex losses of a private or domestic nature, or those relating to exempt income. In some cases, forex losses on the acquisition of capital or depreciating assets, or on the disposal of capital assets, are also not deductible. In these cases, the losses are integrated into or matched with the taxation treatment of the underlying asset.

In some circumstances, you may make an election that affects the realisation or treatment of a forex loss. You can find more information about the forex measures and how to calculate your forex losses at www.ato.gov.au