How do I calculate the upp deductible amount for foreign pension?

(Initiate)Initiate

13 Apr 2026

I received an oral ruling the upp deductible amount of a foreign annuity, which is not subject to be reviewed. My annuity started from April 2024 but the institute paid the April’s annuity in early May and the May’s annuity early June and so forth.

And the ruling from ato gave the upp deductible amount for the 2024-25 financial year covers April May and June.

Now my upp deductible amount would be greater than the amount of annuity I received in 2024. To claim my upp deductible amount for 2024-2025, for supplement deduction section d11 , can I just divide the upp deductible amount from ato by3 and then multiply by two ?

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NikkiATO

(Community Moderator)Community Moderator

15 Apr 2026

Hi @BIGCATWOW,

Once the deductible amount for the undeducted purchase price (UPP) of a foreign annuity has been determined, it’s applied on an annual basis. In each income year, the deduction you can claim is limited to the amount of annuity income you actually include in your tax return for that year.

If the deductible amount is greater than the annuity income received in that year, the deduction is limited to the income received. Any remaining UPP is applied against annuity income in later years. The deductible amount isn’t apportioned or recalculated based on the number of payments received.

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How do I calculate the upp deductible amount for foreign pension?

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