Can I claim my phone on my tax return in Australia?
Yes, you can claim a portion of your phone expenses on your Australian tax return if you use it for work-related purposes. You must apportion the cost based on your work usage and keep adequate records.
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How it works in practice
Eligibility for Claiming Phone Expenses
YouTo claim phone expenses on your Australian tax return, your mobile or home phone must be used to perform your employment duties. This includes making work-related calls, accessing work emails, or using work-related apps. You can only claim the work-related portion of your expenses, not the entire cost of your phone plan or device.
Apportionment and Record-Keeping
The ATO requires you to calculate the percentage of your phone usage that is work-related. If your work-related use is incidental and under $50, you might be able to claim a flat rate without detailed records. However, for higher claims, you will need to keep detailed records, such as itemised phone bills or a diary tracking your work calls over a representative four-week period, to substantiate your claim. You cannot claim expenses for which your employer has already reimbursed you.
Important exceptions
You cannot claim phone expenses if your employer provides you with a phone for work and pays for all usage, or if they reimburse you for all work-related costs. Similarly, you cannot claim the private use portion of your phone expenses; only the work-related percentage is deductible. If you primarily use your phone for personal reasons with minimal work use, a deduction may not be justifiable or may be limited to a very small amount, potentially covered by the ATO's incidental use rule if under $50 without detailed records.
What you should do now
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Review your phone bills or plan details to understand your total monthly or annual costs.
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Determine your work-related usage by keeping a diary of calls, texts, and data for a representative four-week period.
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Calculate the percentage of your phone use that is directly attributable to your work duties.
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Keep all relevant records, including phone bills, payment summaries, and your usage diary, for at least five years.
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Lodge your claim for the work-related portion of your phone expenses when completing your annual income tax return.
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