You pay your phone bill every month. Some of that cost is catching up with friends, some of it is late-night scrolling, but part of it is directly tied to your work. The question is: how much of that bill can you legitimately claim at tax time?
The answer is that you can claim the work-related portion, provided you have records to support it.
Why Guessing Can Be Costly
Many people are tempted to estimate. You might think, “I’ll just say 70% is work-related and that should be fine.”
This is exactly where trouble begins. The ATO does not accept vague estimates. They expect evidence, and without it, your claim may be reduced or denied. In some cases, it could even trigger an audit.
Auditors are well aware of what usage patterns look like across different industries. A tradesperson is unlikely to have 90% work-related internet usage, while a freelance designer would not typically fall as low as 5%. If your numbers appear unrealistic, you may attract unwanted scrutiny.
How to Calculate the Work Split
The simplest approach is to keep short-term records and then apply those percentages across the year.
For your phone:
- Keep a four-week diary recording work versus personal calls.
- Work out the percentage and apply it to your annual bill.
Example: If 30 out of 100 calls are for work, you can claim 30% of your phone costs for the year.
For your internet:
- Record your usage over a typical month.
- Work out what portion relates to work and apply that to your annual bill.
Example: If your $100 monthly internet bill is 60% work-related, you can claim $60 a month, or $720 a year.
If your work usage changes during the year, you will need to keep another short record to reflect the new pattern.
Practical Scenarios
Here are some examples of how this works in practice:
Freelancer Designer
Jade pays $120 a month for internet and $80 for her phone. Her diary shows 70% internet use and 30% phone use is work-related. Her total claim is $1,296.
Tradesperson with a Work Ute
Tom’s internet is for personal use only, but 40% of his $100 monthly phone plan is for work calls. His claim comes to $480.
Hybrid Worker
Sara works part-time as an employee and also freelances. She records 50% work use for the internet and 40% for her phone. Her total claim is $888.
Different roles create different outcomes, which is why accurate records are so important.
Common Mistakes to Avoid
These are the issues that often catch people out:
- Estimating instead of keeping proper records.
- Double claiming, where two household members both claim the full internet bill.
- Ignoring personal use, such as family streaming or gaming.
- Forgetting that phones costing more than $300 must be depreciated, not claimed outright.
- Failing to update records when work usage changes.
Even a small mistake can reduce your refund. Multiple errors could draw the ATO’s attention.
This is exactly why so many Australians turn to Clear Tax. Our experienced team knows the ATO rules inside out and can make sure you claim the right amount without the stress. We help you avoid costly errors and ensure you get the maximum refund you are entitled to.
Audit Examples: The Risks and Rewards
Sarah, a consultant, claimed 80% of her internet bill without evidence. The ATO requested records, which she could not provide. Her deduction was denied, her refund reduced, and interest was added.
Nick, a rideshare driver, kept a clear diary of his phone use and work-related calls. His records aligned with his claim, and the ATO accepted it. He received an extra $900 in his return.
The difference is simple: evidence.
Tools That Can Help
Keeping track of your phone and internet use does not have to be complicated. Several apps and platforms can store bills, track data, and prompt you about work-related claims. Some tax lodgement services also include reminders so that you do not miss eligible deductions.
Final Word
If you use your phone or internet for work, you are entitled to claim the work-related portion. The key is to keep accurate records. A simple four-week diary can be the difference between a smooth tax return and a denied deduction.
The effort is small, but the financial reward can be significant.
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