As promised in their election campaign, the Labor Federal Government may introduce a $1,000 instant tax deduction for work-related expenses from 2026–27 income year, after getting re-elected for a second term.
Simplifying claiming work-related deductions
The proposed measure will allow taxpayers to choose to claim a $1,000 instant tax deduction instead of claiming individual work-related expenses. It will save time and money.
Taxpayers who choose to claim this instant deduction will not be required to to collect receipts for deductions less than $1,000. Helping save compliance time and resources.
Eligibility
To be eligible for the instant tax deduction:
- a taxpayer must earn labour income for example salaries and wages
- a taxpayer must not exclusively earn business or investment income.
Taxpayers who only earn business or investment income may continue to claim their tax deductions in the usual way.
The instant tax deduction will not be available if taxpayers claim more than $1,000 in work-related deductions.
Refer to the Labor Government policy announcement here.
Other deductions
Charitable donations and other non-work related deductions would continue to be claimed on top of this instant tax deduction.
The team at EMspire Advisory are trusted, qualified Chartered Accountants, tax agents, and small business accountants. We work closely with our clients to achieve the best possible outcomes. To find out more, please contact us!
Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.