A free $1000? Not quite. Here’s how the new instant tax deduction works

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With April finally making way for May, it’s that time of year again where political tragics (me) start eagerly rubbing our hands together in anticipation of the federal budget. Slated for May 12, the budget will have all sorts of plans for spending or saving money, including hopefully some real reform on capital gains tax and negative gearing.

But one measure that’s already been announced is the $1000 instant tax deduction, aimed at making tax time easier for people while also providing a small amount of cost of living relief. The gist of the change is that from July 1, you’ll be able to claim up to $1000 in work-related expenses without having to keep receipts.

Now you might be thinking, “oh cool, a free $1000”, but I’m unfortunately going to have to tell you to hold your horses. While this is a good measure that will certainly save the average person some money, there are a few things to keep in........

© Brisbane Times