What is the correct way to pay tax on monthly foreign superannuation payments?

 Author: JayATO(Community Support)Community Support

26 Mar 2026

Hi @NickInMk,

Applicable fund earnings are the earnings on your foreign super interest that have accrued since you became an Australian resident. This amount is calculated and reported only when you make a lump sum transaction, not for ongoing pension-style drawdowns.

For monthly pension payments from a foreign super fund, you need to include these as foreign income in your tax return. You've correctly been converting the amounts to Australian dollars and declaring them as foreign income. If you paid tax on this income in the foreign country, you may be able to claim a foreign income tax offset.

Given the complexity of foreign super pension taxation and the need to correctly determine what deductions or offsets apply to your specific situation, you should contact us for tailored assistance. Your circumstances involve regular payments from a foreign fund, which requires specific assessment of the tax treatment based on the nature of your fund and contributions made while overseas versus after returning to Australia.

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