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Australia to Enshrine $1,000 No‑Receipts Work Deduction in Law

The opt-in flat claim aims to cut paperwork for millions of workers.

Overview

  • Treasurer Jim Chalmers confirmed the measure will be written into law, with the rules starting July 1, 2026 and applying when people file their 2027 tax returns.
  • About 6.2 million taxpayers are expected to benefit, with government estimates pointing to an average saving of $205 and a maximum saving of $470.
  • The deduction is optional, letting workers claim a flat $1,000 for work costs without receipts, while those with higher expenses can still itemise with records to claim more.
  • Charitable donations and other non‑work deductions remain separate, so they can still be added on top of the $1,000 work claim.
  • CPA Australia urged people to keep receipts anyway, warning that skipping records could cause some to miss larger legitimate refunds and that a blanket write‑off may act as a broad subsidy rather than a targeted reimbursement.