Who can claim
This deduction is available to individuals.
- You receive a taxable foreign pension or annuity with an undeducted purchase price attributable to your personal contributions.
- You have a valid calculation of the deductible annual amount or an ATO determination where one is required.
What you cannot claim
- Do not treat the whole foreign pension as a deduction.
- Do not include a pension that is not taxable in Australia in this deduction calculation.
How the amount is worked out
Claim only the calculated deductible annual undeducted-purchase-price amount at the applicable return label.
Records the ATO expects
- Foreign pension statements
- Contribution and purchase-price evidence
- ATO determination or calculation
Before you rely on this rule
This rule is pension- and treaty-specific. Use an ATO determination where the deductible amount is unknown.
Where this rule comes from
Primary source: Income Tax Assessment Act 1936 section 27H (Compilation 192 in force 1 July 2026). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.
Supporting sources:
- ATO foreign pensions and annuities instructions (myTax 2025 foreign pension and UPP instructions)