Using your own phone or internet for work purposes is deductible if you have paid for these costs (i.e. they are not reimbursed), and have records to support the claim (i.e. receipts and diary of usage). If the phones or internet is used for both work and private use, you need to work out the percentage that reasonably relates to your work use.
Suggestions on how to substantiate the expenses:
- If the deduction is greater than $50, you need to keep records for a four-week representative period (i.e. diary entries, electronic records and bills).
- Letter from the employer confirming that you are required to use your phones and/or internet for work purposes.
- Where usage is itemised on your bills, you need to determine your work use percentage over a 4-week period on the basis of the number of work calls made, time spent on work calls or data downloaded for work purposes.
- Where usage is not itemised on your bills, you calculate your work use percentage by keeping a record of all work related calls over a 4-week period.
- Where phone and internet services are bundled, and you are claiming deductions for work-related use of one or more services, the costs need to be apportioned based on the work use for each service.
ATO Website:
Claiming mobile phone, internet and home phone expenses
News Article: ATO cracks down on home office claims
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