From 1 July 2026, the Government plans to introduce a $1,000 standard tax deduction for work‑related expenses. It is designed to make tax time simpler for millions of Australians.
- Eligible taxpayers will be able to claim a flat $1,000 deduction for work‑related expenses
- No receipts are required if this option is used
- It applies to the 2026–27 financial year
If your actual work‑related expenses exceed $1,000, you cannot claim both. You must choose:
- The $1,000 flat deduction, or
- Your actual expenses with receipts
The $1,000 standard deduction only covers work‑related expenses. You can still separately claim:
- Charitable donations
- Union and professional fees
- Investment‑related deductions
This is not yet law and still needs to be passed by parliament.