Substantiation of mobile phone, internet and home phone expenses
The ATO has released information on claiming mobile phone, internet and home phone expenses to reflect the significant rewrite of Practice Statement PS LA 2001/6 to include contemporary electronic device issues.
The rewrite also updates the ATO's approach to the apportionment of mobile phone, home phone and internet expenses.
If a taxpayer uses their own phone(s) or internet for work purposes, they may be able to claim a deduction if they paid for these costs and have records to support their claims. If a taxpayer uses their phone(s) or internet for both work and private use, they will need to work out the percentage that reasonably relates to their work use.
According to the ATO, taxpayers need to keep records for a four-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 a taxpayer's employer expects them to work at home or make some work-related calls will also help the taxpayer demonstrate that they are entitled to a deduction.
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