Phone & Internet Tax Deduction Australia

Q: Can I claim phone and internet if I work from home?

Potentially, but you must avoid double claiming. Phone and internet usage expenses are among the expenses covered by the working-from-home fixed-rate method.

Q: Is there an automatic $50 phone deduction?

No. The $50 amount relates to record-keeping guidance for incidental work-related phone, data and internet expenses and is not an automatic deduction for every taxpayer.

Q: Can I claim my phone if my employer reimburses me?

You generally cannot claim an expense that your employer reimburses.

Q: What records should I keep for a phone deduction?

Depending on the circumstances, relevant evidence can include bills, itemised call records, data records, diary records and calculations supporting the work-related percentage.

Q: Can Nepali students claim phone and internet expenses?

Being a student does not itself create a deduction. If the person is employed and incurs eligible phone or internet expenses directly in performing employment duties, the work-related portion may be considered under the normal rules.

Can you claim phone and internet expenses on tax?

Potentially, yes. If you pay for your own phone, mobile data or internet and use it directly in performing your employment duties, you may be able to claim the eligible work-related portion. The amount you can claim depends on how you use the service, whether your employer pays or reimburses you, your records, and whether those costs are already included in another deduction method.

Your own phone Work-related usage may be deductible when you personally incur the cost.

Home internet The eligible work-related portion may be deductible where the required conditions are met.

Private use Personal calls, browsing, streaming and other private use must generally be excluded.

Employer reimbursement You generally cannot claim an expense that your employer has reimbursed.

Phone & internet tax deduction Australia: the basic rule

Phones and internet services are now part of everyday life, so simply owning a smartphone or having internet at home does not make the cost tax deductible.

For an employee to claim a work-related expense, the general ATO principles require you to have incurred the expense yourself, the expense must relate directly to earning your employment income, and you need the appropriate records to support your claim.

Where an expense has both private and work-related use, you generally need to separate the two and claim only the eligible work-related portion.

Simple rule: Using your $80 monthly phone plan occasionally for work does not mean you can automatically claim the full $80 each month. You need to determine the work-related component using an appropriate and reasonable basis.

What phone expenses may be deductible?

Depending on your employment duties and circumstances, work-related phone expenses can include eligible use of your own mobile service for activities genuinely connected with performing your work.

Work-related telephone calls.
Work-related text messages.
Mobile data used in performing employment duties.
Using work applications required for your job.
Accessing work systems or portals where this forms part of performing your duties.
Work-related video or online meetings.
Other eligible use of your own mobile service directly connected with earning your employment income.

Important: Having your employer's phone number saved on your phone or occasionally receiving a work-related message does not mean your entire mobile plan becomes deductible.

What internet expenses may be deductible?

If you personally pay for home internet and use it in performing your employment duties, the eligible work-related portion may be deductible.

Examples can include internet use for:

accessing your employer's online systems,
performing employment duties from home,
attending work-related online meetings,
uploading or downloading files required for your work,
using cloud systems required by your employer, and
other internet activity directly related to performing your employment duties.

However, the private component of the service must generally be excluded when calculating an actual internet expense claim.

✓ Potentially deductible

You personally pay the expense.
You genuinely use the service to perform your employment duties.
You calculate the work-related portion.
You have the required supporting records.

✕ Generally not deductible

Private phone calls and internet use.
Your employer pays the bill.
Your employer reimburses your expense.
Someone else pays for the service.
The same expense has already been included in another deduction method.

How much of your phone bill can you claim?

The answer is not automatically 100%. If you use the same phone for both private and employment purposes, you need to determine an appropriate work-use percentage.

Your calculation should reflect your actual pattern of use. Depending on the circumstances, relevant factors can include the proportion of work calls, duration of calls, work-related data use and other functions of the phone.

Simplified example Eligible phone deduction = phone cost × reasonable work-use percentage

Example: mixed private and work phone use

Suppose Maya personally pays $60 per month for her mobile plan. After reviewing an appropriate representative period of her usage, she determines that 20% of the relevant usage relates to performing her employment duties.

For a simple illustration, $60 × 20% = $12 of the monthly service cost relates to work. The actual deductible amount for the income year would still need to reflect the relevant period, her circumstances and the applicable substantiation rules.

What is the $50 phone and internet record-keeping rule?

This rule is often misunderstood. According to current ATO guidance, if your work-related phone, data and internet use is incidental and you are not claiming more than $50 in total, you do not need to keep the same detailed records required for larger claims.

If you claim more than $50, you need records showing your work-related use. For example, itemised bills may help you identify work-related calls and data usage.

Do not confuse this with an automatic $50 deduction. The rule does not mean every worker can simply add $50 to their tax return. You still need to have incurred an eligible work-related expense.

How do you prove your work-related phone use?

Where detailed substantiation is required, a representative pattern of use can help demonstrate how much of the expense relates to work.

For example, records may include:

itemised phone bills,
records of work-related calls,
data-usage information,
a diary showing work use,
records demonstrating your work-related internet activity, and
evidence that your employment duties require the relevant use.

Good habit: Do not wait until tax time to try to remember how you used your phone eleven months earlier. Keeping representative records during the year makes it much easier to support a reasonable work-use percentage.

How do you calculate work-related internet use?

Home internet is often shared across several people and used for many different activities. That means claiming the entire household internet bill simply because you occasionally work from home is generally not appropriate.

You need to use a reasonable method to determine the eligible work-related component where you are claiming actual internet costs.

Example: shared household internet

Arjun pays for home internet used by himself and other members of his household. He sometimes performs employment duties from home but the connection is also heavily used for streaming, gaming, social media and general personal browsing.

He cannot simply treat the entire internet bill as a work expense. He needs to identify an appropriate work-related component based on his circumstances and the method he is using to claim.

Working from home? Watch out for double claiming

This is one of the most important rules in this article. If your phone, data or internet costs arise from working from home and you use the ATO fixed-rate method for your working-from-home deduction, the fixed rate already covers specified expenses, including internet and mobile and home phone usage expenses.

You cannot then claim another separate deduction for those same expenses.

Common mistake: Claiming working-from-home hours using the fixed-rate method and then adding the year's phone and internet usage again as separate deductions can result in double claiming.

The actual-cost method works differently. If you use the actual-cost method, you calculate the actual additional expenses incurred as a result of working from home and keep the required supporting records.

Phone & internet deductions: quick comparison

Expense	Potentially deductible?	Important condition
Work-related mobile calls	Potentially	You incur the expense and the calls directly relate to your work.
Private calls	No	Private use must be excluded.
Work-related mobile data	Potentially	Only the eligible work-related component.
Home internet used for work	Potentially	Work-related portion only, subject to the method and records.
Netflix, gaming or private browsing	No	Private use is not deductible as an employment expense.
Employer-paid phone	Generally no personal expense to claim	You cannot claim costs you did not incur.
Employer-reimbursed phone bill	No for the reimbursed amount	You generally cannot claim an expense your employer reimbursed.
Phone/internet covered by WFH fixed rate	No separate claim	These expenses are already included in the fixed rate.

What if your employer reimburses your phone bill?

If your employer reimburses you for the cost you incur, you generally cannot also claim that reimbursed expense as your own tax deduction.

Likewise, if your employer provides the phone and pays for its use, you have not personally incurred that phone-service expense.

Remember: A tax deduction generally relates to an eligible cost that you actually incurred yourself.

Can prepaid mobile users claim a deduction?

Being on a prepaid plan does not automatically prevent an eligible deduction. The important questions remain whether you incurred the cost, whether there is a direct connection with earning your employment income, what portion relates to work, and whether you have the required records.

You should still use a reasonable method to determine the work-related component rather than assuming the entire recharge is deductible.

What about the cost of the actual smartphone?

The cost of purchasing a phone is different from the cost of using a phone service. If you purchase a device yourself and use it for work, the tax treatment can depend on factors such as the cost of the device, the extent of work use and the depreciation rules.

Where an asset is used for both work and private purposes, only the work-related component is relevant. For higher-cost depreciating assets, the deduction may generally be claimed through decline in value over time rather than simply claiming the entire purchase price immediately.

Keep the purchase invoice for a phone, laptop or other work-related device separately from your monthly phone or internet bills. They can be subject to different deduction rules.

Can casual workers claim phone expenses?

Casual employment does not automatically make phone costs deductible. The same basic principle applies: the expense must have the necessary connection with earning your employment income.

For example, the ATO specifically indicates that a casual employee cannot claim phone calls or text messages where an employer contacts them simply to ask them to work, or where the employee contacts the employer to check whether work is available.

Important for casual workers: Being available to receive shifts is different from actually using your phone to perform your employment duties.

Also read: Tax Return for Nepali Casual Workers in Australia .

What if you use one phone for multiple jobs?

If you use your personal phone in performing duties for more than one employer, your records should allow you to determine the relevant work-related use.

You still need to exclude private use. Having two jobs does not turn the private component of your phone or internet service into a deduction.

Working multiple jobs? Read our Tax Return With Multiple Jobs in Australia guide.

What if you use your phone for ABN work?

If you genuinely operate a business or sole-trader activity, business-use phone and internet costs can involve business deduction rules rather than only employee work-related deductions.

If the same phone is used for employment, business activity and private purposes, accurate allocation becomes particularly important.

Not sure whether you are working under a TFN or genuinely operating under an ABN? See our TFN vs ABN Australia Guide .

Can Nepali students claim their phone and internet?

Simply being an international student does not make your mobile or internet bill deductible. The expense needs to satisfy the relevant tax deduction rules.

For example, ordinary private internet use, communicating with friends and family, entertainment and general personal browsing remain private.

If you are also an employee and personally incur phone or internet costs directly in performing your employment duties, the eligible work-related component may be considered under the normal rules.

7 common phone & internet tax deduction mistakes

Claiming 100% of a personal mobile bill. If the phone is also used privately, you generally need to exclude private use.
Treating $50 as an automatic deduction. The $50 rule relates to record keeping in specified circumstances; it is not free money available to every taxpayer.
Claiming reimbursed costs. You generally cannot claim the part your employer reimbursed.
Double claiming with the WFH fixed rate. Phone and internet usage expenses covered by that method cannot also be separately claimed.
Including family usage. Your household's private internet use is not your employment deduction.
Guessing a percentage. Your work-use percentage should be reasonable and supportable.
Having no records. Larger claims need appropriate evidence demonstrating the work-related use.

Records to keep for your phone & internet deduction

Mobile phone bills or recharge records.
Internet bills.
Itemised call records where available.
Evidence of work-related data usage where relevant.
A representative diary or usage record where appropriate.
Evidence showing why the phone or internet is required for your work.
Records showing your work-related percentage calculation.
Device purchase invoices where you are claiming an eligible device-related deduction.
Details of employer reimbursements.
Working-from-home records if you are also claiming WFH expenses.

Example: Nepali worker using phone and internet for work

Example only

Prakash works in an administrative role in Australia. He pays for his own smartphone plan and occasionally works from home. His employment duties require him to make work calls and use online work systems.

Prakash also uses the same phone extensively for social media, personal calls and entertainment, while his household internet is used privately by other family members.

He cannot simply claim 100% of either bill. He needs to apply the relevant deduction method, exclude private use and keep the required records. If he uses the working-from-home fixed-rate method, he also needs to avoid separately claiming phone and internet usage costs already covered by that rate.

Phone & internet vs working-from-home deductions

When you work from home, the ATO provides two broad methods for calculating eligible additional running expenses:

the fixed-rate method, and
the actual-cost method.

The fixed-rate method covers specified additional running expenses including internet, mobile and home phone usage, energy, stationery and computer consumables.

This is why it is important to decide how your working-from-home claim is being calculated before separately entering phone and internet expenses.

SEO question answered: "Can I claim internet and working from home?" Potentially, but you cannot claim the same expense twice. The calculation depends on which valid working-from-home method you use and the expenses covered by that method.

Should you claim your phone and internet on your tax return?

Claiming a legitimate deduction can reduce taxable income, but the goal should not be to claim every household expense simply because it has some connection with technology.

A defensible phone or internet deduction should be based on your actual circumstances, work-related use and records.

For many workers, the work-related percentage is substantially less than 100%. That is completely normal.

Before claiming, ask yourself these 8 questions

Did I personally pay this expense?
Was I reimbursed by my employer?
Do I actually use the phone or internet to perform my work?
How much of the usage is private?
Can I demonstrate my work-related percentage?
Do I have the required bills and records?
Am I already claiming these costs through the WFH fixed-rate method?
Does my calculation reasonably reflect my actual circumstances?

Related tax guides for Nepali workers in Australia

If you are reviewing your phone and internet deduction, you may also want to check other areas of your tax return.

Casual workers:
Tax Return for Nepali Casual Workers in Australia

Multiple jobs:
Tax Return With Multiple Jobs in Australia

Employment type:
Casual vs Part-Time vs Full-Time Work in Australia

Unexpected tax bill:
Why Do I Owe Tax Instead of Getting a Refund?

TFN or ABN:
TFN vs ABN Australia

Frequently asked questions

Can I claim my mobile phone bill on tax in Australia?

You may be able to claim the eligible work-related portion if you personally incur the expense and use the service directly in performing your employment duties. Private use must be excluded.

Can I claim 100% of my phone bill?

Only where the relevant expense is genuinely 100% work-related and the applicable deduction and substantiation requirements are met. If you use the phone privately, you generally need to apportion the expense.

Can I claim home internet on tax?

Potentially. If you incur internet costs and use the service directly in performing your employment duties, the eligible work-related component may be deductible. The calculation also depends on whether you are using a working-from-home deduction method.

Can I claim phone and internet if I work from home?

Potentially, but you must avoid double claiming. If you use the working-from-home fixed-rate method, mobile, home phone and internet usage expenses are among the expenses already covered by the fixed rate.

Is there an automatic $50 phone deduction?

No. The $50 amount relates to specific record-keeping guidance for incidental work-related phone, data and internet expenses. It does not mean every taxpayer automatically receives a $50 deduction.

Can I claim my phone if my employer reimburses me?

You generally cannot claim an expense that your employer has reimbursed. If only part is reimbursed, the treatment of the unreimbursed eligible portion depends on the circumstances and applicable rules.

Can a casual worker claim phone expenses?

Potentially, but casual status alone does not make the expense deductible. The phone use needs the required connection with performing your employment duties. The ATO also specifically excludes certain calls or texts relating merely to being asked to work or checking work availability.

What records should I keep for a phone deduction?

Depending on the amount and circumstances, relevant evidence can include phone bills, itemised call records, data records, diary records and calculations showing how you determined your work-related percentage.

Can I claim the cost of buying my phone?

Potentially, where you purchase the device yourself and use it for work. The treatment depends on factors including its cost, work-related use and depreciation rules. Private use must be excluded.

Can Nepali students claim phone and internet expenses?

Being a student does not itself create a deduction. If you are also employed and personally incur eligible phone or internet expenses directly in performing your employment duties, the work-related portion may be considered under the normal rules.

Not sure how much of your phone or internet you can claim?

Hamro Accountant can help you review work-related expenses, records, working-from-home claims and other deductions based on your circumstances.

Contact Hamro Accountant →

General information only: This article provides general Australian taxation information and is not personal tax, financial or legal advice. Deductibility depends on your individual circumstances, employment duties, actual work use, records, reimbursements and the deduction method used. Always check current ATO guidance or obtain advice from a registered tax professional before lodging your return.