Date: 26 August 2026
Tax Time 2027: Understanding the New $1,000 work related deduction, and why it’s important to understand it early.
Standard deduction for work-related expenses | Australian Taxation Office
From 1 July 2026, a new standard deduction will be introduced of up to $1,000 for work related expenses. This will be introduced into the 2027 tax return, and it is important to prepare and retain the correct records now.
The $1,000 deduction can only be used against salary and wage income.
This measure is designed to simplify tax time and reduce the need to retain records for smaller deductions. However, for those expecting to claim more than $1,000 in work related expenses it is crucial to satisfy the normal substantiation requirements.
What does the $1,000 cover?
The $1,000 standard deduction will cover work related expenses such as, but not limited to:
- Work Related Telephone and internet expenses
- Work From Home expenses
- Printing, Stationery and resources
- Uniform and Laundry
- Motor vehicle expenses
What is not covered under the standard $1,000 deduction?
- Personal Super contributions
- Cost of managing tax affairs
- Donations
- Eligible Income Protection insurance
If you expect to exceed the $1,000, what records do you need to have?
It will be required that you retain records for all amounts, not just the amounts exceeding $1,000.
Records you need to keep | Australian Taxation Office
- written evidence from a supplier (like a receipt or invoice)
- spreadsheets or timesheets (where you enter information)
- logbooks (for example, to document work-related car use)
- diary or calendar entries
- employment contracts or agreements, duty statements or letter from your employer (in some cases).
