Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT 1987No. 61, 1987 - SECT 12

12. Section 160ZB of the Principal Act is amended by adding at the end the
following sub-sections:

"(4) A capital gain, to the extent to which it is attributable to currency
exchange rate fluctuations, shall not be taken to have accrued to a taxpayer
as a result of a contract where the taxpayer entered into, or acquired rights
arising under, the contract for the sole purpose of eliminating or reducing
the risk of adverse financial consequences that might result for the taxpayer,
from currency exchange rate fluctuations, in relation to -

   (a)  a right acquired by the taxpayer before 20 September 1985 to receive
        money under another contract; or

   (b)  a liability acquired by the taxpayer to make a payment under another
        contract.

"(5) A capital loss, to the extent to which it is attributable to currency
exchange rate fluctuations, shall not be taken to have been incurred by a
taxpayer as a result of a contract where the taxpayer entered into the
contract, or acquired rights arising under the contract, after 28 November
1986 for the sole purpose of eliminating or reducing the risk of adverse
financial consequences that might result for the taxpayer, from currency rate
fluctuations, in relation to -

   (a)  a right acquired by the taxpayer before 20 September 1985 to receive
        money under another contract; or

   (b)  a liability acquired by the taxpayer to make a payment under another
        contract.".