The Government plans to introduce a standard deduction for work-related expenses and the cost of managing tax affairs. The standard deduction will be $500 for the 2012/13 financial year, and then $1,000 for the 2013/14 and subsequent financial years.
Where a person’s deductible expenses exceed the standard deduction
amount, they will be able to claim the higher expenses instead of the
standard deduction.
Comment:
This standard deduction would be available regardless of whether
relevant expenditure was actually incurred. For example, a person who
completes their own tax return would be able to claim a deduction for
their own efforts. The standard deduction will translate into a $157.50
saving for a person on a 30% marginal tax rate in the first year of the
measure, and a $315 saving in subsequent years.