Low-income earners would benefit most

“It does hit the sweet spot between offering cost of living relief, simplifying the tax system for those on very low incomes and retaining the basic right to claim deductions for those on higher incomes, or with more complexity,” he told SBS News.

“If you currently claim less than $1,000 in work-related expenses (for example, if you claim $100), you will be able to claim the full standard deduction of $1,000 – which is effectively a tax cut. This is bound to assist with cost of living pressures for low income earners — not by much, but every little bit helps.”

Not a ‘substantial’ cost of living relief measure

“If you claim more than $1,000 in work-related expenses, you simply carry on claiming your deductions as you do at the moment.”

“Anyone who is earning less than $135,000 in 2026/27 will benefit from this policy.”

Time is money, says consumer advocate

“Life is too short to be chasing after receipts, particularly for those with minimal work-related expenses. This move will help millions of Australians submit their tax returns faster and more efficiently.”

Taxpayers urged to approach with caution

While the initiative says taxpayers can claim their $1,000 without any receipts, Chapman urges Australians to still keep their receipts in case their work expenses turn out to be over $1,000.

‘Minimalist’ take on tax reform

“This is very much a minimalist take on the policy — $1,000 is not a huge amount. I’ve seen figures as high as $3,000 suggested in other iterations of the policy in the past.”