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The $1,000 standard deduction: claim it or itemise?

From 1 July 2026, every employee gets up to $1,000 off their taxable income for work expenses, with no receipts. Enter your wages and work expenses to see whether itemising still gets you more, and by how much.

Your job (optional)
$

Labour income only. Business and investment income don't count.

$

Started at the typical claim for media professionals on your income. Change it to your own figure.

Your 2026-27 return · lodged from July 2027

Itemising means about $480 less tax

Your $2,500 of work expenses is $1,500 more than the $1,000 you get automatically. Each dollar above it is worth about 32c to you. To claim it, you need written evidence for every work expense, not just the ones above $1,000.

$1,000 automatic$1,000
Your work expenses$2,500

Take the $1,000 standard deduction

Work-expense deduction
$1,000
Tax and Medicare
$17,400
Receipts for work expenses
Not needed

Itemise your work expenses

Work-expense deduction
$2,500
Tax and Medicare
$16,920
Receipts for work expenses
Every expense

Estimate only, on the 2026-27 ATO rates for a full-year Australian resident, including the Medicare levy and low income tax offset. The typical claims by job are illustrative, not ATO limits. EOFYmate is not a registered tax agent. Always confirm with the ATO or a registered tax agent.

Not sure where you'll land? Track it as you go.Log 2026-27 work expenses and watch your total against the $1,000. Free, saved in your browser only.

How the standard deduction works

  • Automatic. The ATO applies it in your return. You don't claim it or report it.
  • Up to $1,000, capped at your wages and other labour income. It reduces your taxable income; it isn't a refund or an offset.
  • Reduced dollar for dollar by the work expenses you itemise. So your work-expense deduction is whichever is larger: $1,000 or what you itemise.

Claiming these reduces it

  • Working from home expenses
  • Car expenses and tolls for work
  • Uniform and laundry
  • Stationery, tools and equipment (including their decline in value)
  • Work training courses
  • Travel between separate workplaces

Claim these on top, either way

  • Union fees
  • Professional, trade or business association memberships
  • Gifts and donations
  • Tax agent fees (the cost of managing your tax affairs)
  • Personal super contributions
  • Income protection insurance
  • Investment and rental property deductions

Record keeping changed on 1 July 2026

These changes apply to everyone, whether or not you take the standard deduction:

  • The $300 no-receipts allowance for work expenses is gone. Itemise, and you need written evidence for every work expense.
  • The $150 laundry allowance is gone. The ATO accepts $1 per load of work clothes only, or 50c per load mixed with other clothes.
  • The award transport expense exemption is gone.

Standard deduction FAQs

Still lodging your 2025-26 return?

The standard deduction starts next year. For the return you're doing now, see your refund and the work deductions you can claim under this year's rules.

Estimate my 2025-26 refund

Official reference: ATO: Standard deduction for work-related expenses and Draft Law Companion Ruling LCR 2026/D5.

This page is general information only and not personal tax advice. EOFYmate is not a registered tax agent. Always confirm with the ATO or a registered tax agent before lodging.