What Percentage of Your Internet Use Can You Claim?

Information verified correct on December 11th, 2016

Homeoffice4Can I claim my internet and mobile phone use as a tax deduction?

Good question. It can be possible to claim your a percentage of your bills and reduce your tax. Read on for more information.

How do I claim my internet and mobile phone tax deduction?

When it comes to tax time, you should be looking for every single deduction you’re eligible for and that does include internet and phone use. However, it is only allowed if you’ve also studied a course to help improve your career or if you work from home.

Speak to an accountant today about claiming your internet and home phone

Are you working from home?

If you run a business from home, work from home as part of your work or have studied and required internet access for this, then you might be entitled to claiming some of your internet use as part of your return. Here’s how it works.

  1. You estimate what percentage of your internet use is for work purposes. For example, if you think you use 20% of your internet on work purposes, then take 20%.
  2. Work out 20% of your monthly bill. For example, if you pay $100 per month, then 20% of that will be $20.
  3. Multiply your monthly work-related internet bill by 12 to give you a figure for the year. $20 x 12 = $240.
  4. You can claim $240 per year on your internet usage.
What about my mobile phone?

If you use your phone for work then you may also be able to claim a the cost of work related usage on your tax return. Like internet usage, you can only claim the cost of mobile phone usage that relates exclusively to your work. Working it out is very similar to your internet use.

  1. You estimate what percentage of your phone use is for work purposes. For example, if you think you use 50% of your internet on work purposes, then take 50%.
  2. Work out 50% of your monthly bill. For example, if you pay $80 per month, then 50% of that will be $40.
  3. Multiply your monthly work-related phone bill by 12 to give you a figure for the year. $40 x 12 = $480.
  4. You can claim $480 per year on your mobile phone usage.

You’re doing the right thing looking for as many ways as possible to increase your deduction, but don’t stop now. We’ve previewed a whole range of deductions, tax tips and the tax services that are available to you. Keep looking through our guides, get as much information as you can, and try to keep as much of your hard earned money in your pocket.

Click here for our full guide to tax returns.
DISCLAIMER: Many of the comments in this article are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information applicability to their own particular circumstances.

Shirley Liu

Shirley is finder.com.au's publisher for banking and investments. She is currently studying a Masters in Commerce (Finance) and is the author of hundreds of articles. She is passionate about helping Aussies make an informed decision, save money and find the best deal for their needs.

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