When Australian workers lodge a tax return from mid next year, around 6 million taxpayers look set to be able to claim up to A$1,000 with an “instant” work-related tax deduction, without receipts. The Albanese government has just released draft legislation on the change.

That deduction is higher than the little-known $300 limit on receipt-free work deductions available today.

But if you’re among the majority of people who claim more than $1,000 in work expenses, you’ll be better off keeping your receipts and claiming the way you do now.

And if you have buy equipment to do your job – such as a computer, phone or tools of the trade – there’s a separate change proposed to start from July 1 this year worth knowing about too.

Does this mean a $1,000 discount on your tax bill?

No. This proposal to let Australian workers claim up to $1,000 in work deductions is not the same as getting $1,000 more back in your bank account after you submit your tax return.

The federal government estimates 6.2 million workers (42% of taxpayers) could expect to benefit from introducing a standard $1,000 work-related tax deduction in the 2026–27 financial year, without receipts to back that up. The government estimates those taxpayers would save an average of $205 in 2026–27.

How much you might get back would depend on how much you earn and how much you’re taxed.

For example, if you earn less than $18,200, you........

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