If you use your own phones or internet for work purposes, you may be able to claim a deduction if you paid for these costs and have records to support your claims. If you use your phones or internet for both work and private use, you will need to work out the percentage that reasonably relates to your work use.

Substantiating your claims

You need to keep records for a 4-week representative period in each income year to claim a deduction of more than $50. These records may include diary entries, including electronic records, and bills. Evidence that your employer expects you to work at home or make some work-related calls will also help you demonstrate that you are entitled to a deduction.

How to apportion work use of your phone

There are 4 different methods to claim your phone:

Incidental use

If your work use is incidental and you are not claiming a deduction of more than $50 in total, you may make a claim based on the following, without having to analyse your bills:

• $0.25 for work calls made from your landline,
• $0.75 for work calls made from your mobile, and
• $0.10 for text messages sent from your mobile.

Usage is itemised on your bills

If you have a phone plan where you receive an itemised bill, you need to determine your percentage of work use over a 4-week representative period which can then be applied to the full year.

You need to work out the percentage using a reasonable basis. This could include:

• the number of work calls made as a percentage of total calls
• the amount of time spent on work calls as a percentage of your total calls
• the amount of data downloaded for work purposes as a percentage of your total downloads.

Usage is not itemised on your bills

If you have a phone plan where you don’t receive an itemised bill, you determine your work use by keeping a record of all your calls over a 4-week representative period and then calculate your claim using a reasonable basis.

Bundled phone and internet plans

These days phone and internet services are often bundled. When you are claiming deductions for work-related use of one or more services, you need to apportion your costs based on your work use for each service.

If other members in your household also use the services, you need to take into account their use in your calculation. To claim, you need to identify your work use for each service over a 4-week representative period during the income year. This will allow you to determine your pattern of work use which can then be applied to the full year. A reasonable basis to work out your work related use could include:

Internet:

• the amount of data downloaded for work as a percentage of the total data downloaded by all members of your household
• any additional costs incurred as a result of your work-related use – for example, if your work-related use results in you exceeding your monthly cap.

Phone:

• As noted above

For more information or to book an appointment, call one of our friendly staff on 03 9792 2772. Alternatively you can email info@infitygrp.com.au