The Federal Budget delivers real tax relief for working Australians. If you earn income from work, there are two new measures that directly reduce your tax bill — one starting this financial year, one from 2027–28.

The $1,000 instant tax deduction — starts now

From the 2026–27 income year, workers can deduct up to $1,000 from their taxable income for work-related expenses without keeping receipts. It applies automatically when you lodge your tax return.

What it’s worth:

• Average saving: $205

• No receipts required

• No separate application — it comes through your tax return

• Applies to 6.2 million workers

If you already claim more than $1,000 in legitimate work-related expenses, you can continue to do that with receipts as before. This is a floor, not a cap.

The $250 Working Australians Tax Offset — from 2027–28

A new permanent annual tax offset of $250 for all eligible Australian workers, applied automatically through your tax return from the 2027–28 income year.

What it’s worth:

• $250 per year for over 13 million workers

• 97 per cent of eligible workers receive the full amount

• Increases the effective tax-free threshold by nearly $1,800

The full picture — five rounds of tax cuts

These two measures sit on top of legislated tax rate cuts already in the pipeline:

• From 1 July 2026: Tax rate on income between $18,201 and $45,000 drops from 16% to 15% — worth up to $268

• From 1 July 2027: That rate drops again to 14% — worth up to $536 per year ongoing

• Combined benefit for an average earner ($81,245): Up to $2,816 per year from 2027–28

Moore is a community of working households. 

People here are paying mortgages, covering school costs, managing rising bills. These measures won’t fix every pressure, but they are real, practical and permanent.

Read more at budget.gov.au