Anthony Albanese pledges $1000 instant tax deduction for Aussie workers
Anthony Albanese has promised to give all working Australians an instant $1000 off their yearly tax bill, with no receipts necessary. Here’s how it will work.
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A re-elected Labor government would give all working Australians an opt-in $1000 off their yearly tax bill, in a change expected to cost the budget $2.4bn over four years.
Prime Minister Anthony Albanese announced the new policy at Labor’s campaign launch in Perth.
The latest announcement builds on the housing policy announced overnight.
The instant tax deduction would give those who choose it $1000 off their work expenses — meaning people could skip the paper work and receipts if they wanted to and believe the amount is equal to or higher than what their deduction would be.
“Every year, millions of people who work part time, or work from home, or don’t have an accountant to navigate the tax system for them miss out on claiming deductions they are entitled to and pay more tax than they should,” Mr Albanese said.
“This reform fixes that – and it fixes it forever. It takes away the hassle of tracking your expenses, especially if you work from home.
“No-one will be worse off under this reform – but I make this point: nearly 6 million taxpayers – overwhelmingly low and middle income earners and young Australians – will be better off.”
The opt-in $1000 instant tax deduction will come into play in 2026/2027, with Labor claiming it will mean more than one in three taxpayers won’t need to more than six clicks to tick off their tax return.
Labor has claimed the time saving alone from reducing the burden of record keeping was estimated to be worth about $200 million a year — money that would likely have gone to accountants.
The policy is expected to benefit the 5.7 million taxpayers — or 39 per cent of all taxpayers — who at the moment claim less than $1000 in deductions.
On average the annual tax relief for those who benefit will be $205 according to Labor.
Australians earning between $45,001 and $135,000 could get a benefit of up to $320 and about 88 per cent of those who benefit would have a taxable income of less than $135,000 in 2026-27.
To be eligible for the instant tax deduction, taxpayers have to earn labour income — so those who only earn business or investment income and no labour income would have to claim their deductions in the usual way.
Taxpayers claiming more than $1000 in work-related deductions would still be able to do so.
According to Labor charitable donations and other non-work related deductions would continue to be claimed on top of the instant tax deduction.
“We’re reforming the tax system to make it easier, simpler and faster to do your taxes,” Treasurer Jim Chalmers said.
“This is tax reform and additional, modest tax relief at the same time.
“Our economic plan is all about lower taxes and higher wages for workers.”
Originally published as Anthony Albanese pledges $1000 instant tax deduction for Aussie workers
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