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Millions of Aussies to get instant $1000 tax deduction

1 month ago 112

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9:46am Apr 20, 2026

Treasurer Jim Chalmers today confirmed the tax break will be officially enshrined in law and will come into effect in time for the 2027 tax season next year.

The maximum tax saving under the legislaton will be $470, with the average saving being $205.

Jim ChalmersTreasurer Jim Chalmers announced the legislation would be enshrined this year. (Nine)

"This will cut back on paperwork, it will save time and money and it will provide a bit of tax relief as well," Chalmers said.

"It will benefit 6.2 million workers when they lodge a tax return next year."

Around 6.2 million Australians will be eligible for the instant deduction.

The legislation will mean workers won't need to provide receipts for up to $1000 in work-related expenses.

Receipts and a tax return.Millions of workers will be able to claim an instant $1000 tax deduction next year. (AFR Louie Douvis)

Chalmers said the $1000 write-off forms part of the Labor government's broader budget goal of reducing income tax.

Prime Minister Anthony Albanese said at the time it will give more Australians "your own money faster" and won't need to claimed through an accountant or receipts.

"No paperwork, no box of receipts, no scrolling through your online banking - just tick the box and your return is ready," he said.

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