More than 6.2 million Australians eligible to claim a $1000 tax deduction without receipts will have to wait after the Albanese government announced it would release draft legislation.
Labor announced plans for the tax relief in the lead-up to the 2025 federal election.
On Monday, Treasurer Jim Chalmers said the federal government would release its draft legislation that same day.
Under the initiative, taxpayers would receive up to $470 on their tax return or an average of about $205, Mr Chalmers said.
“It’s a good symbol of what we are trying to do more broadly, cutting income taxes, cutting red tape, and helping out where we can,” Mr Chalmers said.
However, the instant $1000 write-off will not come into effect until July 1, 2026, meaning the deductions would only apply to the following financial year ending on June 30, 2027, not this year.
The Albanese government is mulling over changes to tax arrangements for the May budget.
Among the possible changes is a paring back of the of the capital gains tax and potential changes to negative gearing.
Earlier this month, Mr Chalmers said he would be “pretty happy” if the headline out of the 2026-27 budget was that it was a “tax reform budget”.
