Good news in the Budget?
The budget is looming closer and there is talk of potential new deductions for individual taxpayers.
The Australian Government has announced plans to introduce a new $1,000 instant tax deduction for work-related expenses, if this passes it will begin in the 2026/27 financial year.
What this means is you will be able to claim $1,000 against your individual return without needing to provide receipts.
This legislation is aimed at making the tax system simpler and delivering more lasting cost‑of‑living relief to the 6.2 million taxpayers who usually claim less than $1000 in work-related expenses.
Taxpayers would now be have to choose between:
- claiming the standard $1000 deduction without receipts
- claiming the actual work-related expenses with receipts if their expenses are in excess of $1000
This will not give you a $1,000 refund it will reduce your taxable income by $1,000, which is estimated to save individuals an average of $205.
Charitable donations and other non-work-related deductions will continue to be claimed on top of the instant tax deductions.
It is still recommended you keep your receipts throughout the year in case your expenses are in fact over the $1,000 in order for us to claim them correctly.
Author
Natasa Briffa