Mobile Phone Tax Deduction

This was a big focus last year and we advised a lot of clients through the year that the ATO was seeking the ‘four-week’ representative period records on these expenses. If you haven’t completed this, it would be a good time to start now. You should be reviewing how you claim work/business use of your mobile and/or home phone and Internet expenses.

For best results, you are best keeping track of these expenses over a ‘four-week’ representative period: Over the four weeks, keep a record of:

  • Your business use as a % of overall use.
  • The amount of time spent on work calls as a % of overall calls.
  • The amount of data downloaded for work as a % to overall data used.

If your home phone and internet are in a bundle, you need to calculate the relevant price of the service if they were not in a bundle, and apply the discount % to that service inside the bundle. This is then calculated out to make the claim for the full year.

The ATO have introduced ‘Safe Harbour’ rules for incidental phone use, but is limited to a maximum of $50 per year with Landline calls being 25c call, mobile,75c call and SMS texts @ 10c each.


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