I am hoping someone can help me. My family and I are moving to Oz on a 175 Visa in June. I currently work full time and my wife trades the forex market for a little extra money. In the UK we pay no tax on the profits from Forex trading as it is classed as gambling. We intend to continue trading the forex when we move, does anyone know if we will have to pay income tax in Australia on our profits ?

The following is a quote from the Australian Tax office...

"Foreign exchange (forex) measures bring to account foreign currency gains and losses as assessable income or allowable deductions, on a realisation basis, to the extent such gains or losses are attributable to a fluctuation in a currency exchange rate, or to an agreed exchange rate differing from an actual exchange rate. The measures apply to all taxpayers, except for, broadly, banks and similar financial institutions.
Foreign exchange (forex) measures bring to account foreign currency gains and losses as assessable income or allowable deductions, on a realisation basis, to the extent such gains or losses are attributable to a fluctuation in a currency exchange rate, or to an agreed exchange rate differing from an actual exchange rate. The measures apply to all taxpayers, except for, broadly, banks and similar financial institutions."

I believe the activities your wife engages in fall under the classification of "hedging transaction" as described in the Common Transactions section.

Forex taxation by the ATO


Always check with your tax professional for information to your specific situation.


Cheers
Marilyn