How do I claim a partial deduction for phone and internet expenses in Australia?

You can claim a deduction for the work-related portion of your phone and internet expenses. Because most people use their phone and internet for both personal and work purposes, you must apportion the expenses and only claim the work-related percentage.

How to calculate the work-use percentage: The ATO expects you to keep a record for a representative four-week period to determine your usual usage pattern. Track calls, data, and time spent on work-related activities versus personal use. If your work use is 40% of total phone usage based on your four-week sample, you can claim 40% of your annual phone plan costs.

What you can claim: Your monthly plan costs (the portion attributable to work calls/data), the work-related percentage of your home broadband or mobile data plan, and the decline in value of the device itself if it is used for work. If you use the fixed rate method (67 cents/hour) for home office expenses, your internet costs are already included in that rate and cannot be claimed separately.

Record-keeping: Keep your phone and internet bills, and a log or diary entry covering the four-week representative period. For amounts under A$50 in total, the ATO allows a reasonable estimate without a log, but a log is strongly recommended to avoid an audit adjustment.

Important: If your employer reimburses your phone or internet costs, you cannot claim those amounts as a deduction.