With a surge of Australians now working from home due to the coronavirus outbreak, it's likely that your home Internet and mobile usage is growing. Make sure you know how to figure out the amount you've used for work purposes so you can claim tax back on your Internet and phone bills when it comes to the end of the financial year.
How do I claim my Internet and mobile phone bills as a tax deduction?
When it comes to tax time, you should be looking for every single deduction you’re eligible for, which includes your Internet and phone use. However, it's only allowed if you’ve also studied a course to help improve your career, or if you work from home.
Claiming your home Internet use on tax
The following steps outline how to figure out the amount you can claim back on tax:
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%.
Work out 20% of your monthly Internet bill.
Multiply your monthly work-related internet bill by 12 to give you a figure for the year, or whatever period you've spent working from home.
Claiming your phone bill on tax
If you use your phone for work then you may also be able to claim 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. For example, checking work emails on your phone and making work-related phone calls would be considered work use. Working it out is very similar to your Internet use:
You estimate what percentage of your phone use is for work purposes. For example, if you think you 40% of your phone use is for work purposes, then take 40%.
Multiply your monthly work-related phone bill by 12 to give you a figure for the year.
How to make sure you're claiming your Internet and phone use correctly
You can only claim a tax deduction for the portion of your bills that relate to your work use, not personal use, and you need to be able to show your calculations to the Australian Taxation Office (ATO) if you're asked to. The ATO monitors tax returns each year to check people are claiming deductions that they're entitled to claim. If you claim too much, or you can't show your calculations when asked, you won't get the tax deduction and you could also be hit with a fine.
Make sure you've kept records of your Internet and phone bills, or that you're keeping a diary to lodge your usage in case you're asked to produce evidence if your tax return is reviewed.
Using a tax agent is one way to make sure you're claiming the full amount of your home Internet and phone bills that you're eligible for, and they'll be able to help do the calculations for you.
Looking for more things to claim?
We've got a comprehensive guide on what you can and can't claim as a tax deduction this year.
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 is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs.
Working from home due to coronavirus and want to know what you can claim on tax? Here's how to claim your home office and other household expenses as a tax deduction this year.
The process involved to lodge your business tax return will vary depending on if you're a sole trader, partnership, trust or a company. Here's what's required with each business type.
Your tax return has a different deadline depending on which financial year you're filing for, and whether or not you're using a tax agent. See which tax return due date applies to you in this guide.
Investors aren’t the only ones who can benefit from property tax savings. From home offices to renting out a spare room, there are deductions available.
If you're an Australian resident for tax purposes you need to lodge an income tax return. Here's how to tell if you're considered a resident or not by the ATO.
Follow our step-by-step guide on how to lodge a tax return including the information you'll need, the different ways to lodge it and what deductions you can claim.
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Important information about this website
finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles
We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.
Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.
We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.
Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.
Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money.
When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.
Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
