The ATO has recently released some further guidelines on how we should be claiming mobile phone, internet & home phone deductions.
Are you making the appropriate deductions?
If you use your own phone or internet for work, you are able to claim a deduction based on the percentage that reasonably relates to work use.
If your deduction totals more than $50, you are required to keep records for a 4-week period for each income year. You will also need to provide evidence from your employer stating that you are expected to use your phone or internet for work purposes, this will also demonstrate to the ATO that you are entitled to a deduction.
To calculate the proportion of expenses you are entitled to claim, you can use the following guidelines:
Incidental use – If you are not claiming a deduction of more than $50 in total, you can claim based on the following:
- $0.25 for work calls on a landline
- $0.75 for work calls on a mobile
- $0.10 for text messages sent from your mobile
Regular use – you need to keep a 4-week log, which can be based on any of the following:
- The number of work calls 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
Use this blog as a reminder to get your 4-week log completed now to make sure you don’t miss out on any deductions this tax year.
If you would like some assistance in calculating your eligible deductions, get in touch with your advisor from HTA.
