Huge tax change coming for millions of Australians: What you need to know
- Receipts not needed for $1,000 tax deduction claims
- Claims can't be made until 2026-27
- READ MORE: Chalmers' major changes for capital gains taxes revealed
Millions of Aussies will soon be able to make an instant $1000 tax deduction claim for work-related expenses without needing to keep a box of receipts.
Treasurer Jim Chalmers has announced the major tax reform ahead of delivering his fifth Federal Budget next month.
An estimated 6.2 million Aussies – or 42 per cent of taxpayers – will benefit from the reforms, which come into effect from July 1.
'We're helping Australians earn more and keep more of what they earn and this is another key way we're delivering for millions of Australian workers,' Chalmers said.
'We're reforming the tax system to make it easier, simpler and faster to do your taxes.
'This is tax reform and a bit of extra tax relief at the same time.'
The actual benefit depends on your income tax rate.
For many workers, that means an average tax saving of about $205, with some set to save up to $470.
Federal Treasurer Jim Chalmers (pictured with wife Laura) has announced new tax reforms that will help 6.2million Aussies
Aussies will be able to make an instant $1000 tax deduction claim without the need for receipts
Because the measure starts from July 1, it applies to the 2026–27 financial year.
Claims over $1,000 will still require receipts.
Charitable donations and other non‑work‑related deductions can be claimed separately, in addition to the instant tax deduction.
Sales assistants, office workers, nurses, and childcare workers are among the occupations set to benefit the most from the tax changes.
Tax agents still urge Aussies to keep receipts for work expenses, regardless of the amount they want to claim.
'If taxpayers stop tracking their expenses in the hope of an easy 'instant' deduction, they risk missing out on the full refund they are entitled to if their actual costs such as professional equipment, home office expenses, or self‑education surpass the flat $1000 limit,' CPA Australia's Jenny Wong warned.
