The Government announced that it would not proceed with the 2010-11 Budget announcement to allow a standard tax deduction for work-related expenses and the cost of managing tax affairs which was due to commence on 1 July 2013.
[Thomson Reuters note: In its MYEFO statement released on 29 November 2011 (see 2011 WTB 50 [1898]), the Government deferred the start date of the standard deduction by 12 months until 1 July 2013.]
The Government is pursuing other simplification measures such as tripling the tax-free threshold to $18,200 from 1 July 2012. The ATO is also continuing to make it easier for people to complete their tax return through improvements in pre-filling.
The Government says this will provide savings to the Budget of $2bn over the forward estimates period.
Source: Budget Paper No 2 [p 36]
[WTB 19, 8/5]