The Australian Treasury is seeking feedback on a simplified tax deduction system aimed at reducing the compliance burden for workers while maintaining existing arrangements for those with higher work-related expenses.  

RF Report

The Australian Treasury has initiated a public consultation on 20 April 2026 on proposals to introduce an instant standard deduction of up to AUD 1,000 for Australian tax residents earning employment income, with implementation targeted for 1 July 2026.

This reform delivers the government’s election commitment to simplify the tax system and provide cost-of-living relief. Those with work-related expenses exceeding AUD 1,000, or those earning only business or investment income, will retain their existing arrangements. Certain deductions — such as investment expenses, charitable donations, and union fees — can still be claimed alongside the standard deduction.

Responses must be submitted via the designated website in Word or PDF format, with agreement to the privacy collection statement required.

The consultation closes on 1 May 2026.