Who can claim
This deduction is available to individuals.
- You are an Australian resident individual for the 2026-27 income year.
- You have assessable labour income, including salary, wages or another amount covered by the statutory labour-income definition.
- You calculate the standard amount after specified actual work-related deductions.
What you cannot claim
- The standard amount cannot exceed your labour income.
- Do not add $1,000 on top of specified actual work deductions. Car, work travel, work assets, work-related COVID-19 tests and section 8-1 labour deductions reduce the available standard amount.
- Income protection, personal sickness or accident insurance and trade, business or professional association subscriptions do not reduce the standard amount and may be claimed separately when eligible.
- This rule does not apply to companies or to an individual who is not an Australian resident.
How the amount is worked out
For 2026-27, start with the lesser of $1,000 and assessable labour income. Subtract specified actual work-related deductions. The result cannot be below zero. Eligible association subscriptions and income-protection, sickness or accident insurance deductions are considered separately.
Records the ATO expects
- Income statement or labour-income record
- Worksheet of specified actual work-related deductions
- Separate records for association subscriptions and eligible insurance deductions
Before you rely on this rule
This deduction is enacted for 2026-27. Use the calculator so the $1,000 amount is not duplicated with actual work-related deductions.
Where this rule comes from
Primary source: Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49, 2026 — latest compilation). Reviewed 30 July 2026. Covers the 2026-27 income years.