What is the $1,000 instant work deduction?

An automatic $1,000 work-related expense deduction announced in the Federal Budget 2026-27 (handed down 12 May 2026). You can claim it on your tax return from the 2026-27 income year (1 July 2026 onwards) with no receipts, no diary, and no substantiation. It replaces all itemised work expenses for the year if you choose it.

Can I claim the $1,000 AND itemise my real expenses?

No. It's an either/or choice each year. If you claim the $1,000 shortcut, you cannot also claim individual work expenses (no double-dipping). If your real expenses exceed $1,000, itemise. If they're under $1,000 (or zero), the shortcut is a straight win.

Should I keep receipts in 2026-27?

Yes — keep them throughout the year, then decide at tax time. If your itemised expenses total over $1,000, you'll need the receipts to back the claim. If they're under, you can use the shortcut and the receipts don't matter. The 5-year record-keeping requirement still applies if you do itemise.

What expenses would I claim by itemising?

Working from home (fixed rate or actual cost), work-related phone and internet, work-related self-education, protective clothing or uniforms (with logo), work-related vehicle expenses (cents-per-km or logbook), tools and equipment (immediate write-off if under $300 each, depreciated above), and home office furniture depreciation. Union and professional association membership fees are NOT part of this trade-off — the ATO allows them to be claimed in addition to the standard deduction, along with income protection insurance premiums, investment expenses and charitable donations.

Does the instant deduction apply to all taxpayers?

It applies to Australian tax residents who earn income from work. People who earn only business or investment income keep the current arrangements, as do people with more than $1,000 in work-related expenses, who can still itemise. There is no occupation restriction.

$1,000 Instant Work Deduction Estimator

From 1 July 2026 you can claim a flat $1,000 work deduction with no receipts. Compare against itemising your real expenses and see which gets you the bigger refund.

Last verified: 2 August 2026Jump to calculator ↓

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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