Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) For the purposes of this Subdivision, a * qualifying forex account that you hold passes the limited balance test at a particular time if, at that time:
(a) an election made by you under section 775 - 230 has effect in relation to:
(ii) the account and one or more other * qualifying forex accounts; and
(b) the total of the credit balances of the account and each of those other accounts (if any) is not more than the * foreign currency equivalent of $250,000; and
(c) the total of the debit balances of the account and each of those other accounts (if any) is not more than the foreign currency equivalent of $250,000.
Note: For buffering during an increased balance period, see subsections (2) and (3).
Buffering during first and second increased balance period
(2) For the purposes of this section, an increased balance period is a continuous period consisting of:
(a) an income year; or
(b) a particular part of an income year;
where, at each time during the period, either or both of the following conditions is satisfied:
(c) the total of the credit balances of the account or accounts covered by your section 775 - 230 election is more than the * foreign currency equivalent of $250,000, but not more than the foreign currency equivalent of $500,000;
(d) the total of the debit balances of the account or accounts covered by your section 775 - 230 election is more than the foreign currency equivalent of $250,000, but not more than the foreign currency equivalent of $500,000.
Increased balance period | ||
Item | In this case... | this is the result... |
1 | (a) an increased balance period is the first or only increased balance period that occurs in a particular income year; and (b) the duration of the period is 15 days or less; and (c) it is not the case that: (i) the period began at the start of the income year; and (ii) another increased balance period ended at the end of the previous income year | paragraphs (1)(b) and (c) do not apply during the first - mentioned increased balance period. |
2 | (a) an increased balance period is the first or only increased balance period that occurs in a particular income year; and (b) both: (i) the period began at the start of the income year; and (ii) another increased balance period ended at the end of the previous income year; and (c) the total duration of those increased balance periods is 15 days or less | paragraphs (1)(b) and (c) do not apply during those increased balance periods. |
3 | (a) an increased balance period is the first or only increased balance period that occurs in a particular income year; and (b) the duration of the period is more than 15 days; and (c) it is not the case that: (i) the period began at the start of the income year; and (ii) another increased balance period ended at the end of the previous income year | paragraphs (1)(b) and (c) do not apply during the first 15 days of the first - mentioned increased balance period. |
4 | (a) an increased balance period is the first or only increased balance period that occurs in a particular income year; and (b) both: (i) the period began at the start of the income year; and (ii) another increased balance period ended at the end of the previous income year; and (c) the total duration of those increased balance periods is more than 15 days | paragraphs (1)(b) and (c) do not apply during the first 15 days of the period that consists of those increased balance periods. |
5 | (a) an increased balance period is the second increased balance period that occurs in a particular income year; and (b) the duration of the period is 15 days or less; and (c) item 1 or 2 applies to the first increased balance period that occurred in the income year | paragraphs (1)(b) and (c) do not apply during the first - mentioned increased balance period. |
6 | (a) an increased balance period is the second increased balance period that occurs in a particular income year; and (b) the duration of the period is more than 15 days; and (c) item 1 or 2 applies to the first increased balance period that occurred in the income year | paragraphs (1)(b) and (c) do not apply during the first 15 days of the first - mentioned increased balance period. |
Translation of foreign currency
(4) For the purposes of the application of section 960 - 50 to this section, work out the * foreign currency equivalent of an amount of Australian currency as at a particular time in an income year by translating the foreign currency to Australian currency at the average exchange rate for the third month that preceded the income year.
(5) For the purposes of this section, a debit balance is to be expressed as a positive amount.
Note: For example, if you owe $1,100 on a credit card account, the
debit balance of that account is $1,100.