$1,000 Flat Deduction vs Itemising: Which Wins?
In short: From FY2026-27 (income from 1 July 2026), Australian wage earners can take a flat $1,000 work-related deduction, which the ATO applies automatically, or itemise. If your documented work-related expenses exceed $1,000, itemise and claim the actual total; if they are under $1,000, or you have not kept records, take the flat $1,000. You can switch each financial year.
Read MoreHow to Claim the New $1,000 Flat Tax Deduction (Step-by-Step)
Here is how to claim the $1,000 flat deduction announced in the Australian Federal Budget on 12 May 2026: confirm you're eligible, total your actual work-related expenses, decide whether the flat claim or itemising gives you a bigger number, then lodge your FY2026-27 tax return accordingly. That is the first year this deduction applies, covering income from 1 July 2026. This guide walks through each of those steps in plain language, with worked examples and answers to the questions that trip people up.
Read MoreThe New $1,000 Flat Tax Deduction: Who Qualifies
In short: Australia's $1,000 flat deduction for work-related expenses applies from the 2026-27 income year (from 1 July 2026), needs no receipts and has been law since June 2026. It goes to Australian residents for tax purposes who earn assessable labour income, such as salary and wages, director fees or parental leave pay. Sole traders who only earn business income aren't eligible.
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