When Australian workers lodge a tax return from mid-next year, around six million taxpayers look set to be able to claim up to $1000 with an “instant” work-related deduction, without receipts.

The Albanese government released draft legislation on the change late last week.

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 $1000 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 worth knowing about too.

Is this a $1000 discount on your tax bill?

No. This proposal to let Australian workers claim up to $1000 in work deductions is not the same as getting $1000 more back in your bank account after you submit your tax return.

The federal government estimates 6.2 million workers (42 per cent of taxpayers) could expect to benefit from introducing a standard $1000 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 do not pay income tax. So this change would not benefit you.

For higher-income........

© The New Daily