As part of their election commitments, on 13 April 2025 the Labor party announced plans to provide eligible individual taxpayers with a $1,000 instant tax deduction for work-related expenses.
This measure is not yet law.
On 20 April 2026 the Government released for public consultation a draft Bill and explanatory memorandum. The draft Bill will amend the tax law to:
- introduce a standard deduction for work-related expenses of up to $1,000 for Australian tax residents who earn income from work
- keep current arrangements for people who:
- have more than $1,000 in work-related expenses, or
- earn only business or investment income
- allow some deductions to be claimed in addition to the standard deduction, including:
- expenses that are not work-related, such as investment expenses and charitable donations
- union and professional association membership fees
- income protection insurance premiums
- prevent people from receiving a double benefit by salary packaging expenses covered by the standard deduction
- update substantiation and capital allowance rules to support the new standard deduction.
The measure will commence on 1 July 2026 and apply to the 2026–27 individual tax return. The standard deduction does not apply to the 2025–26 individual tax return.
For more information, see: