Struggling to figure your work phone deduction?

Posted by BaronTax
6
Jul 22, 2025
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If you use your mobile phone for business tasks like calls, apps and digital access, the good news is—yes, you can claim a tax deduction for it! Here’s how to do it the right way.

Key takeaways:

  • Only claim the work portion — You can deduct phone and data costs proportionate to business use, whether you itemise calls/data or use a usage diary 

  • Mobile handset depreciation — If you bought your own phone, claim its decline in value over its effective life (typically 2–3 years); or write it all off immediately under ATO’s instant asset write‑off if eligible 

  • Usage sampling over 4 weeks — Use an itemised bill or diary for a representative four‑week period to calculate your work-use percentage for the year 

  • Don’t double-dip with home office fixed rate — If you already use ATO’s fixed-rate method for working from home, you cannot separately claim phone or internet deductions 

  • Incidental-use option — If phone claims are under $50 annually, you can use a simplified rate (e.g. $0.75/call, $0.10/text) without tracking usage .

  • Keep solid evidence — Hold onto purchase receipts, invoices, bills, call logs or diaries for at least five years in case of an audit .

  • No reimbursement means deductible — Only your out‑of‑pocket expenses can be claimed—not bill segments already reimbursed by an employer .


? Ready to maximise your claim?
Learn the full step‑by‑step guide on tracking, apportioning and deducting your mobile phone expenses: Mobile Phone Tax Deduction

? Prefer a broader look? Visit our main site for tailored tax tips and strategies: Baron Accounting

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