14 April 2025

CPA Australia responds to ALP's $1,000 instant tax deduction pledge

Responding to the ALP’s election pledge to introduce a $1,000 instant tax deduction from 2026-27, CPA Australia Tax Lead Jenny Wong says CPA Australia does not support the idea, and rejects claims that it would result in reduced need for professional tax agents.

“Allowing taxpayers to choose to claim a $1,000 instant tax deduction instead of claiming individual work-related expenses may save some workers a bit of time - but could mean they miss out on the full refund they are entitled to," she said.

“Further, previous modelling has shown that a standard deduction would cost government and taxpayers much more than it brings in revenue. This makes it not only inefficient but also provides tax breaks to those who don’t have legitimate work-related expenses.

“Taxpayers should be encouraged to take greater responsibility for their finances and tax obligations. Clicking a few buttons to get a basic deduction may be easy, but it is unlikely to be in the best interests of taxpayers or the economy.

“We reiterate our advice to taxpayers that it’s crucial to keep records and provide evidence of your work-related expenses to lodge full and complete claims.

“The proposition that a standard deduction will lead to a decrease in the use of tax agents seems to have no basis in reality. The Australian tax system remains overly complex and those who have previously relied on the professional advice of tax agents will continue to do so.

“In principle CPA Australia supports a systemic and planned simplification and improvement of Australia’s tax system. But ideas like standard deductions are not the solution and shouldn’t be resurrected as part of a popularist election pledge.”

About us:

About CPA Australia   

CPA Australia is Australia’s leading professional accounting body and one of the largest in the world. We have more than 174,000 members in over 100 countries and regions. Our core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. We engage with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. Find out more at cpaaustralia.com.au

Contact details:

Simon Downes, External Affairs Lead, simon.downes@cpaaustralia.com.au or 0401 461 503