"I heard I can claim $1,000 without receipts now. Can I stop keeping them?"
It's a fair question, and one we're hearing a lot.
The short answer is no, not yet. Here's why.
What Is the Standard Deduction?
From the 2026–27 income year, eligible taxpayers receive a standard deduction of up to $1,000 for work-related expenses.
You don't need to have spent the money, and you don't need records to get it. The ATO applies it automatically when you lodge.
A few things to know:
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It's a deduction, not a refund. It reduces your taxable income, so your actual tax saving depends on your tax rate
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It applies to the year we're in now (1 July 2026 to 30 June 2027), so you'll first see it in the return you lodge from July 2027
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It doesn't apply to your 2025–26 return
Who Gets It?
You're eligible if you're an Australian resident for tax purposes and you earn income from working, such as salary and wages or director fees.
If your only income comes from investments or running a business, the standard deduction doesn't apply.
And if you earn less than $1,000 from work, the deduction is capped at what you earned.
Here's the Catch
The $1,000 isn't added on top of your work-related expenses. It replaces them.
If you claim actual work expenses, the standard deduction shrinks dollar for dollar. Claim $400 of expenses and your standard deduction drops to $600. Claim more than $1,000 and it disappears altogether.
So at tax time, the choice looks like this:
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If your work expenses come to less than $1,000, take the standard deduction and you're done
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If they come to more than $1,000, claim your actual expenses instead, with records for every one of them
Why Your Receipts Still Matter
You won't know which side of $1,000 you're on until the year is over.
A new laptop, a training course, some extra car travel for work, and you could be well past the threshold by June. Without records, you can't claim any of it, and you'd be left with $1,000 even if you spent far more.
There's another change worth knowing about. From 1 July 2026, two long-standing shortcuts are gone for everyone:
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the rule that let you claim up to $300 of work expenses without receipts
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the $150 laundry limit that didn't need written evidence
If you choose to claim your actual expenses, you now need written evidence for all of them.
What You Don't Lose
Some deductions sit outside the standard deduction, so you can keep claiming them as usual:
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union fees and professional association memberships
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donations to registered charities
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rental property and investment expenses
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income protection insurance premiums
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personal super contributions
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the cost of managing your tax affairs, including your accountant's fee
You'll still need records for these.
A Change for Work Equipment
Until now, work items costing under $1,000 could be added to a low-value pool and depreciated faster.
From 2026–27, items you mainly use for your job can't go into a low-value pool. You can still claim depreciation, but it counts as a work expense and reduces your standard deduction.
Keep It Simple This Year
The easiest approach is to keep doing what you've always done. Save receipts for work expenses in a folder, an app or an album on your phone.
If it turns out you've spent less than $1,000, nothing's lost. If you've spent more, you'll be glad you kept them.
If you'd like to talk through how this applies to your situation, reach out to our office.