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

9   Subsection 104-240(1) (paragraph (a) of the definition of sum of reductions)

Repeal the paragraph, substitute:

(a) if the *depreciating asset is covered by subsection 104-235(1):

(i) if subparagraph (ii) does not apply - the reductions in your deductions for the asset under sections 40-25 and 40-27; or

(ii) if there is a reduction of the balancing adjustment amount under section 40-291A in relation to the *balancing adjustment event - the amount of that reduction; or