To claim a deduction for your mobile phone, you must demonstrate that it’s used primarily for work purposes.
This means you’ll need to prove that a significant portion of your phone usage is directly related to your job.
If you’re claiming the 67 cents per hour deduction for working from home, you cannot claim a separate deduction for your mobile phone expenses.
This is because the 67 cent rate already covers various work-related expenses, including phone usage.
Can I Claim the Full Cost of My Phone?
You can’t claim the entire cost of your phone as a tax deduction.
But you can claim a portion of it based on your work-related usage.
- Phones costing less than $300: You can claim a deduction for the business use percentage of the phone’s cost. For instance, if you use your phone 50% for work and it cost $200, you can claim a deduction of $100.
- Phones costing more than $300: You can claim depreciation on the phone over its effective life, which is generally three years. This means you can claim a portion of the phone’s value each year as a deduction.
Can I Claim My Phone Bill?
Yes, you can claim a deduction for the work-related portion of your mobile phone bill.
To do this, you’ll need to keep records of your phone usage, such as call logs or itemised bills.
You can then estimate the percentage of your bill that relates to work and claim that amount as a deduction.
What Records Do I Need to Keep?
To successfully claim a deduction for your phone, you’ll need to keep detailed records. This includes:
- Phone bills: These documents show your total phone expenses.
- Call logs: These can help you estimate the percentage of work-related calls.
- Logbook: If you use your phone for business travel, a logbook can help you track work-related kilometres.
- Proof of purchase: This is required if you’re claiming a deduction for the phone itself.
Can I Claim My Phone Charger?
Generally, the cost of a phone charger is considered a minor expense and cannot be claimed as a separate deduction.
However, if you can prove that the charger is exclusively used for work purposes and is a significant cost, you might be able to claim a deduction.
What if I Use a SIM-Only Plan?
If you’re on a SIM-only plan, you can claim a deduction for the work-related portion of your phone bill.
The same rules apply as for a phone with a contract.
Can I Claim My Phone Apps?
The cost of phone apps is generally considered a minor expense and cannot be claimed as a deduction unless you can prove that they are essential for your job and represent a significant cost.
What if I Use My Phone for Work-Related Travel?
If you use your phone for work-related travel, you might be able to claim a deduction for the phone’s use while on the road.
You’ll need to keep a logbook to record your business kilometres and calculate the percentage of time spent on work-related travel.
Can My Employer Reimburse Me for Phone Expenses?
If your employer reimburses you for phone expenses, you cannot claim a deduction for those amounts.
However, you can claim a deduction for any expenses that exceed the reimbursement.
Tax laws can change, so it’s wise to check the Australian Taxation Office (ATO) website as much as possible.
If you’re unsure about claiming your phone on tax, consider seeking advice from a tax professional.