You may be able to make a claim for part of the cost of your mobile and/or home phone plan, if you use it to earn your income, as long as your employer does not reimburse you for the cost.
You can’t just claim the whole bill though (unless you only use it for work). The claim must be equal to the amount you use for work purposes. For instance, if for work purposes, you use 25% of the total use of the phone plan, for 11 months of the year, then that is all you can claim.
A logbook is required to be kept for a period of four weeks, each year, to show a pattern of use, if you want to claim more than $50 and you may have to show evidence that your employer expects you to work at home, and make some work-related calls, to be entitled to the deduction.
Make sure you keep a copy of all your phone bills, as the ATO may ask for proof of your spending.
If your phone and internet services are bundles into one, then you will have to separate out all the services that you use for work and then calculate the work portions of each service.
If your phone use is only incidental (a few calls here and there) and you are not claiming more than $50 you can claim without the log book and bills using the following rates
25c per work call made from your landline
75c per work call made from your mobile
10c per work text sent from your mobile
The purchase of a new phone can also be claimed.
Once again this can be claimed according to the portion of the phone that you use for work purposes (from your logbook).
As an employee, if the cost of the phone is over $300 then it will not be able to be claimed all at once. It will instead need to be depreciated.
If you are in business, then the amount is higher before you will need to depreciate it.
Don’t forget, keeping clear records, receipts and logbooks will always help you to receive the best possible tax refund.
Lodge your tax return with GoTax Online!
Speedy Gonzalez $10, Not too much to claim $38.50, One with the lot $64.95 and if it’s your first time, do it for FREE!
Note that the information provided is general in nature and subject to change, please contact one of our professionals who can evaluate your circ*mstances and provide more accurate advice to your current situation.
