$1,000 standard work-related deduction

From 1 July 2026, the ATO is introducing a $1,000 standard work-related deduction.

If your deductions are $1,000 or less, you’ll be able to claim it without receipts. If your deductions are more than $1,000, nothing changes. You still need records. You still need advice. This isn’t a threat to accountants. It’s a line in the sand.

Basic deductions were already low value work. This change just makes that obvious.

What it does do is force a choice for accounting practices:

• Compete on simple, standardised claims, or
• Focus on advice that actually makes a difference

The firms that struggle will be the ones built around checking receipts and ticking boxes. The firms that grow will use the $1,000 standard deduction as a starting point, then move the conversation to:

• Occupation-specific deductions
• Asset and usage strategies
• Business and investment structures
• Forward-looking tax planning

Compliance alone won’t protect profits. It never has. This change doesn’t reduce the value of accountants. It exposes where the real value has always been.