Things you need to know
If you show income from a foreign pension or annuity at question 20 – label D, you may be entitled to claim a deduction to reduce the taxable amount of the pension or annuity income if it has a undeducted purchase price (UPP). Only some foreign pensions and annuities have a UPP. The UPP is the amount you contribute towards the purchase price of your pension or annuity (your personal contributions).
That part of your annual pension or annuity income that represents a return to you of your personal contributions is free from tax. This tax-free portion is the deductible amount of the UPP, and the calculation usually divides the UPP of your pension or annuity by a life expectancy factor, according to life expectancy statistics.
If you don't receive a foreign pension or annuity that has a deductible amount of UPP, go to question D12 Personal superannuation contributions 2025.
If you already know your deductible amount, go to Completing your supplementary tax return.
Austrian pensions
You can claim a deductible amount if you're entitled to receive an age, premature age, invalid, disability, widowed persons or orphans pension an Austrian super insurance fund pays under one of the following:
- Austrian social insurance acts
- Allgemeines Sozialversicherungsgesetz (ASVG)
- Gewerbliches Sozialversicherungsgesetz (GSVG)
- Bauern-Sozialversicherungsgesetz (BSVG).
Where you have evidence of your actual contributions, actual monthly salary or you have a list of your insurance periods from the Austrian super insurance fund, you'll need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
British pensions
If you're entitled to receive a pension from the United Kingdom State Pension (previously the British National Insurance Scheme), you may be entitled to a UPP deduction.
For a category A pension or a category B widows pension, you can calculate your deduction by multiplying your UK State Pension (in Australian dollars) by 8%. If you want to calculate your UPP using the exact method, you'll need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
If you're entitled to receive a category C or D pension, you're not entitled to a deductible amount of the UPP.
Dutch pensions
If you're entitled to receive an old age pension, or a widows, widowers or orphans pension from the Sociale Verzekeringsbank (SVB) under the Netherlands social insurance system and you can obtain all the necessary information to determine the deductible amount of your UPP, claim the amount you work out. If you can't determine the deductible amount, you can claim an annual deductible amount equal to 25% of your gross pension payment.
German pensions
If you're entitled to receive a German pension, you'll need to provide a copy of the insurance resume (Versicherungsverlauf) from the pension provider. You'll need to contact the pension provider directly to obtain this information. When you have evidence of your employment history and the salary income you earn at those dates, you'll need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
Italian pensions
If you're entitled to receive an Italian government pension, the Italian government authorities will send you an Article 10 letter each year giving you an estimate of the amount of pension income you'll receive, and the amount you contributed towards your pension. If you're unable to work out your deductible amount, you'll need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
Pensions from another country
If you're entitled to receive a pension from another country, other than an Austrian, British, Dutch, German or Italian pension, and you think you're able to claim a deductible amount, complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
Completing your supplementary tax return
Write the deductible amount of your UPP at question D11 – label Y in your supplementary tax return.
If you don't know your deductible amount:
- leave question D11 – label Y blank
- complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity
- sign it
- attach it to your tax return
- provide the additional documents we require
- print X in the Yes box at Taxpayer's declaration – question 2 in your tax return.
We will address your request in the form of a private binding ruling (PBR) which is legally binding on the Commissioner. We will process your tax return once we finalise the PBR.
If you need information or assistance with this question, contact us.
Where to go next
- Go to question D12 Personal superannuation contributions 2025.
- Return to main menu Individual supplementary tax return instructions 2025.
- Go back to Total supplement income or loss 2025.