Beginning next year, millions of Australian workers will benefit from a new law allowing them to claim an instant tax deduction of up to $1,000 for work-related expenses without needing to keep receipts. This policy, proposed by the Labor government in anticipation of the 2025 election, aims to simplify tax filing and provide relief to taxpayers. According to Treasury estimates, about 6.2 million workers, or four in ten, will take advantage of this deduction. The maximum benefit from this change is projected to be $470, with an average benefit around $205. The new rules will apply only to expenses related to earning income from labor, and taxpayers can still receive the deduction even if they do not claim any expenses. However, those with expenses exceeding $1,000 will need to provide receipts for their claims. The Parliamentary Budget Office estimates that this policy will cost the federal budget approximately $1.24 billion in its first year and rise to $1.4 billion annually by the mid-2030s. Treasury is currently seeking feedback on the draft legislation, which is expected to be finalized and presented to parliament soon.