Standard tax deduction – draft legislation

The Australian Government has released for comment exposure draft
legislation and explanatory material regarding the Federal Budget
2010–11 proposal to provide individual taxpayers with a standard tax deduction.
The draft legislation proposes a standard deduction of $500 for
2012–13, rising to $1000 from 2013–14. The deduction would replace
work-related expenses and the cost of managing tax affairs for those
taxpayers whose claims for these expenses are less than the standard
deduction. Taxpayers whose claims for these expenses exceed the standard
deduction would still be able to claim those deductions.