From 2026–27, eligible workers get up to $1,000 for work expenses without a single receipt. For some people that's the end of it. For others it's leaving money behind.
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By the Nomo team · Last reviewed 24 September 2026
From the 2026–27 income year, eligible workers can claim a standard deduction of up to $1,000 for work-related expenses, without keeping receipts for the standard amount. It's applied by default in your tax return if you're eligible. You'll also hear it called the "instant tax deduction".
It replaces the old rule that let you claim up to $300 of work expenses without receipts.
Australian residents for tax purposes who earn wage (labour) income. Your standard deduction is the lower of $1,000 or your total labour income. It doesn't apply if your only income is from a business or investments.
The standard deduction doesn't cover business income, so your business expenses still need records. If you also earn wages, it can apply to the wage side. See sole trader tax deductions.
Here's the part most people miss. The work expenses you claim yourself reduce the standard amount, dollar for dollar. So you don't get $1,000 plus your expenses. You get whichever is higher.
| You claim | Standard amount left | Total work deduction |
|---|---|---|
| $0 of work expenses | $1,000 | $1,000 |
| $600 of work expenses | $400 | $1,000 |
| $1,750 of work expenses | $0 | $1,750 |
Claim more than $1,000 and you need written evidence, like receipts, for all the work expenses you claim.
The detail comes from the ATO's draft ruling LCR 2026/D5, so check the current version before you rely on it.
Put in rough numbers for the year. The calculator adds up the work expenses the standard deduction covers, compares them with $1,000, then adds union and association fees on top.
Standard deduction calculator. Enter your work kilometres, hours worked from home, tools, clothing, self-education and other work expenses, plus union and association fees, and compare them with the $1,000 standard deduction. Estimate only.
| Example | Covered work expenses | Result | Estimated work deduction incl. fees |
|---|---|---|---|
| Office worker, 2 days a week at home (750 hours), no other costs | $525 | The $1,000 standard deduction is higher | $1,000 |
| Community nurse: 1,200 work km, $150 uniform and laundry, $400 union fees | $1,242 | Itemising beats $1,000 | $1,642 |
| Tradie: 3,000 work km, $900 tools, $300 protective gear | $3,930 | Itemising beats $1,000 | $3,930 |
Not sure what to include? Work through the tax deduction checklist.
If you only take the standard amount, you don't need records for the expenses it covers. If you claim your actual expenses, the usual record rules apply to all of them.
The catch: you won't know which way to go at tax time unless you've kept track through the year. Records you never kept can't be claimed. See receipts and record keeping.
These are illustrations, not predictions. People whose work costs often add up past $1,000 include those who:
Nomo keeps a running total of your work trips, work from home hours and receipts all year, so you can see whether you're above or below $1,000 long before tax time. The number is an estimate of what you've tracked, not a refund amount. Nomo is an Australian tax deduction and mileage/work kilometre tracking app for PAYG employees and sole traders.
Found so far this year, across trips, WFH and expenses.
Work from home hours at 70c an hour.
Receipts read and sorted as you go.
See the tax deduction tracker.
A deduction of up to $1,000 for work-related expenses, with no records needed for the standard amount, starting in the 2026–27 income year.
Australian residents with wage (labour) income. It's the lower of $1,000 or your labour income.
No. It's applied by default in your tax return if you're eligible.
Covered work expenses reduce the $1,000, so you get whichever is higher. Some deductions, like union fees and tax agent fees, are claimed on top.
Not for the standard amount. If you claim your actual work expenses, you need records for all of them.
Not to business income. If you also earn wages, it can apply to the wage side.
From the 2026–27 income year, so the tax returns people do from July 2027.
From 2026–27, yes. The standard deduction replaces it.
Know if you beat $1,000 before July.
One running total for trips, home hours and receipts. 14 days free, no card needed.
Start 14-day free trialBy the Nomo team · Last reviewed 24 September 2026. We check these pages against current ATO guidance and update them when the rules change.
General information only, not tax advice. Rules change and everyone’s situation is different, so check ato.gov.au or talk to a registered tax agent about your situation. Nomo is a record keeping app, not a registered tax agent.