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No. Persons receiving this type of annuity (residuary or survivorship annuity) are not entitled to a deduction as they have not contributed to the purchase price of the original annuity.

If the original annuity commenced to be payable before 1 July 1983, former section 26AA of the Income Tax Assessment Act 1936 applies and to be entitled to a deduction a person needs to have made the contributions.

If the original annuity commenced to be payable on or after 1 July 1983, section 27H applies and to be entitled to a deduction a person does not need to have made the contributions. Example: 'A' became entitled to receive an annuity in January 1982. 'A' died January 1992 and as a result 'B' was entitled to receive 60% of the original annuity. As 'A's' entitlement started before 1 July 1983, 'B' is not entitled to a deduction for the undeducted purchase price.