You will also 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.

When you can’t claim a deduction for your phone
If your employer provides you with a phone for work use and is billed for the usage (phone calls, text messages, data) then you are not able to claim a deduction. Similarly, if you pay for your usage and are subsequently reimbursed by your employer, you are not able to claim a deduction.

How to apportion work use of your phone
As there are many different types of plans available you will need to determine your work use using a reasonable basis.

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

For example:
Julie has an $80 per month mobile phone plan, which includes $500 worth of calls and 1.5GB of data. She receives a bill which itemises all of her phone calls and provides her with her monthly data use.
Over a 4-week representative period Julie identifies that 20% of her calls are work-related. She worked for 11 months during the income year, having had 1 month of leave. Julie can claim a deduction of $176 in her tax return (20% x $80 x 11 months).

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.

For example:
Ahmed has a prepaid mobile phone plan which costs him $50 per month. Ahmed does not receive a monthly bill so he keeps a record of his calls for a 4-week representative period. During this 4-week period Ahmed makes 25 work calls and 75 private calls. Ahmed worked for 11 months during the income year, having had 1 month of leave.
Ahmed calculates his work use as 25% (25 work calls /100 total calls). He claims a deduction of $138 in his tax return (25% x $50 x 11 months).

Bundled phone and internet plans
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.

If you have a bundled plan, 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

• 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
• Any additional costs incurred as a result of your work-related calls – for example, if your work-related use results in you exceeding your monthly cap.

ALSO: If you purchased a smart phone, tablet or other electronic device and use it for work, you can claim a deduction for a percentage of its cost.

If you have any further queries regarding claiming your mobile phone(s), internet and home phone expenses, please contact your Highview accountant.

Source: Australian Taxation Office 2015