You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4.

Edited version of private advice

Authorisation Number: 1051777821161

Date of advice: 10 November 2020


Subject: Undeducted purchase price of a foreign pension or annuity


Are you entitled to an undeducted purchase price (UPP) deductible amount in respect of your foreign pension?


Yes. The deductible amount has been calculated in accordance with the formula under subsection 27H (2) of the Income Tax Assessment Act 1936

This ruling applies for the following periods:

Year ended 30 June 20XX

Year ended 30 June 20XX

Year ended 30 June 20XX

The scheme commences on:

1 February 20XX

Relevant facts and circumstances

The taxpayer is a resident of Australia for income tax purposes.

The taxpayer's pension is paid by the XXX Compensation Office (SCO), a scheme maintained in Country A.

The taxpayer provided a letter from the XXX Compensation Office outlining the amount of your personal contributions

The taxpayers pension commenced on XX/month/20XX and is payable for life

The taxpayer currently receives 100% of the pension

The residual capital value of the pension is nil

When the pension commenced the taxpayer was 65 years of age and their life expectancy factor was 19.22

The taxpayers pension is paid on a monthly basis.

Relevant legislative provisions

Income Tax Assessment Act 1936 Section 27H

Income Tax Assessment Act 1936 Subsection 27H(2)

Income Tax Assessment Act 1936 Subsection 27H(4)

Income Tax Regulations 1936 Regulation 9