So with regards to tax if a gain is made by delaying transferring funds due to waiting for a better exchange rate.
I have now spoken to several so called people in the know. ATO advisors, Accountants etc and have had differing answers. This morning I spoke to a technical advisor for the ATO on Foreign Investments.
Before I go on though I must make it clear that I am not a Tax Advisor nor a foreign exchange Advisor so please do not take this as advice for these purposes and this is general information.
This is the information that he gave me.
When you became a tax resident of Australia the exchange rate at the time should be used to ascertain the value of the interest in the Bank Account you hold overseas. Therefore if you subsequently transfer money over at a later date and the rate of exchange is higher thus giving you a gain then this gain is assessable as a capital gain in Australia. No timeline exemption exists.
So hopefully the above makes sense.
For me this would be the best explanation I have had and would seem to be the most accurate going on how other foreign investments are treated.
Also to let you know in Australia there is a 50% exemption on capital gains if the asset has been held for over 12 months.