Did you receive a foreign pension or annuity which has a deductible amount of undeducted purchase price (UPP)?
You need to know
UPP of a foreign pension or annuity
If you showed income from a foreign pension or annuity at D item 20 on your tax return you may be entitled to claim a deduction to reduce the taxable amount of the pension or annuity income if your pension or annuity has a UPP. Only some foreign pensions and annuities have a UPP. The UPP is the amount you contributed towards the purchase price of your pension or annuity (your personal contributions).
That part of your annual pension or annuity income which represents a return to you of your personal contributions is free from tax. This tax-free portion is called the deductible amount of the UPP, and it is usually calculated by dividing the UPP of your pension or annuity by a life expectancy factor, according to life expectancy statistics.
If you already know your deductible amount, go to Completing this item.
If you received an age, premature age, invalid, disability, widowed persons or orphans pension paid by an Austrian superannuation insurance fund under one of the Austrian social insurance acts, Allgemeines Sozialversicherungsgesetz (ASVG), Gewerbliches Sozialversicherungsgesetz (GSVG) or Bauern-Sozialversicherungsgesetz (BSVG), you are entitled to a deductible amount.
Where you have evidence of your actual contributions, actual monthly salary or you have received from the Austrian superannuation insurance fund a list of your insurance periods, you will need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
If you received a category A pension or a category B widows pension from the United Kingdom State (UK State) Pension (previously known as the British National Insurance Scheme), you are entitled to a UPP deduction. These pensions are paid from Newcastle-upon-Tyne.
You can calculate your deduction by multiplying your UK State Pension (in Australian dollars) by 8%, or by using the exact method. For more information about the exact method, phone 13 10 20.
If you received 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 have worked out. If you cannot determine the deductible amount, you can claim an annual deductible amount equal to 25% of your gross pension payment.
If you received a German pension, you will need to provide a copy of the insurance resume (Versicherungsverlauf) from the pension provider. You will need to contact the pension provider directly to obtain this information. When you have evidence of your employment history and the salary income that you earned at those dates, you will need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
If you received 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 will receive, and the amount that you contributed towards your pension. If you are unable to work out your deductible amount, you will 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 received a pension from another country, other than an Austrian, British, Dutch, German or Italian pension, and you think you are entitled to claim a deductible amount, complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity.
Write the deductible amount of your UPP at Y item D11 on your tax return.
If you do not know your deductible amount:
- leave Y item D11 blank
- complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity
- sign it
- attach it to page 3 of your tax return
- provide the additional documentation required
- print X in the Yes box at Taxpayer's declaration question 2 on page 10 of 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 the PBR is finalised.
If you need information or assistance with this question, phone 13 10 20.
Where to go next
- Go to question D12 Personal superannuation contributions 2018.
- Return to main menu Individual tax return instructions 2018.
- Go back to Total supplement income or loss 2018.