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, union fees, professional memberships, 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.

Does the instant deduction apply to all taxpayers?

Yes, all individual taxpayers earning work-related income can claim it. There's no income threshold and no occupation restriction. Investors with rental properties, business owners, and contractors all have their own deduction rules and aren't affected — this is specifically for employees and PAYG earners with work-related expenses.

$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 2026

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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.

$1,000 Instant Work Deduction Estimator

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