What is the undeducted purchase price calculator?
The Undeducted purchase price calculator is a tool built by the Tax Office to help people who are receiving a pension or annuity and who may be eligible for an annual exclusion associated with the payment of this pension or annuity.
Pension and annuity income from both Australian and foreign sources received by Australian residents is generally assessable in Australia unless excluded by a specific provision of the tax act or by the operation of a double tax agreement with another country.
If you contributed to a pension or annuity and did not receive a deduction for those contributions at the time you made them, you may be entitled to a tax concession in the form of an annual deductible amount. This means that part of the pension or annuity that you are receiving may be tax free.
This calculator is not intended for use in calculating the deductible amount of foreign sourced pensions or of pensions and annuities which commenced to be payable prior to 1 July 2004. The calculator is intended for use in straightforward situations and cannot be used for some pensions and annuities.