Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (49 of 2026)

Schedule 4   Standard deduction for work-related expenses

Part 1   Amendment of the Income Tax Assessment Act 1997

Income Tax Assessment Act 1997

8   At the end of section 40-425

Add:

Exception: assessable labour income

(9) You cannot allocate a *depreciating asset to a low-value pool if, at the time you:

(a) started to use it; or

(b) had it *installed ready for use;

you reasonably expected to use it mainly for the purpose of gaining or producing your *assessable labour income.