Millions of Australians will get a $1,000 instant tax deduction under a new law – here’s how it will work

Treasury says the maximum benefit will be an income tax bill reduction of $470, and estimates the average benefit will be about $205. Photograph: Lukas Coch/AAP

Millions of Australian workers from next year will be able to “instantly” claim a standard deduction of up to $1,000 in work-related expenses without having to keep receipts.

The draft legislation for the policy landed on Monday, just over a year after Labor proposed the change in the run-up to the 2025 election.