Claiming mobile phone & internet

If you are claiming mobile phone or internet for work purposes, you may need to work out the percentage that reasonably relates to your work use.

Substantiating your claims

You are required to keep records for a minimum 4-week period in each income year to claim a deduction of more than $50. These records may include diary entries and bills. Obtain evidence that your employer expects you to work at home or make some work-related calls always helps when claiming mobile phone and internet.

Employer provided phone – Not allowable to claim

If your employer provides you with a phone for work use and is billed for the usage (phone calls, text messages, data) then you are not able to claim a deduction. Similarly, if you pay for your usage and are subsequently reimbursed by your employer, you are not able to claim a deduction.

How to apportion work use of your phone

Incidental use

You may make a claim based on the following, without having to analyze your bills:

• $0.25 for work calls made from your landline,
• $0.75 for work calls made from your mobile, and
• $0.10 for text messages sent from your mobile.

Usage is itemised on your bills

If you have a phone plan where you receive an itemised bill, you need to determine your percentage of work use over a 4-week period which can then be applied to the full year.

You need to work out the percentage using a reasonable basis. This could include:

• the number of work calls made as a percentage of total calls
• the amount of time spent on work calls as a percentage of your total calls
• the amount of data downloaded for work purposes as a percentage of your total downloads.

Bundled phone and internet plans

Phone and internet services are often bundled. When you are claiming deductions, you need to apportion your costs based on your work use for each service. If other members use the services, you need to take into account their use.

If you have a bundled plan, you need to identify your work use for each service over a 4-week period during the income year. This will allow you to determine your pattern of work use which can then be applied to the full year.

A reasonable basis to work out your work related use could include:

Internet:

• the amount of data downloaded for work as a percentage of the total data downloaded by all members of your household
• any additional costs incurred as a result of your work-related use – for example, if your work-related use results in you exceeding your monthly cap.

Phone:

• the number of work calls made as a percentage of total calls
• the amount of time spent on work calls as a percentage of your total calls
• any additional costs incurred as a result of your work-related calls – for example, if your work-related use results in you exceeding your monthly cap.

Feel free to contact the team at Burwood Business Services for more information