Using your personal phone for work? You might be eligible to claim part of the cost on your tax return this end of financial year (EOFY).  

From work calls and emails to apps and data, work-related use of your mobile could be tax deductible.  

How do tax deductions work?

Tax deductions are work-related expenses which you could use to reduce your taxable income. This means you could end up paying less in tax or even get a tax refund. 

Here’s 5 quick tips to help you get the most out of your phone-related tax claim this EOFY. At tax time, it’s always a good idea to chat to a professional – like a registered tax agent or accountant – to get the right tax advice for your personal situation. 

1. What mobile phone costs could I potentially claim?

You may be able to claim deductions for the work-related use of your personal mobile phone.

Deductions can include:

• Calls and texts
• Data used for work-related tasks like emails, apps or browsing 
• A portion of your monthly phone plan fees
• Part of your phone cost 

Quick tip: Only the work-related portion counts, so a little careful tracking now could mean savings later. 

Now that you know what you can claim, let’s look at how you could calculate your claim. 

2. How do I calculate my phone's work-related use

The Australian Taxation Office (ATO) suggests you use a 4-week typical period to work out your claim. This means logging your usage over 4 weeks (or a single month) to estimate your annual work-related usage percentage.

For example: If your phone bill is $60/month and you use it 50% of the time for work, you could claim $30/month or $360 over 12 months. If your usage varies throughout the year, keep a detailed log to show how it varies. 

Now that you know how you could calculate your claim, let’s look at claiming your mobile phone.

3. Can I claim the cost of my phone?

Claiming your mobile phone on your tax return depends on how much the device costs. 

How it works: 

• Under $300: You can claim all work-related usage within the financial year 
• Over $300: You’ll need to claim it over time, typically a period of 2 to 3 years

For example:

Eve brought a phone for $1,200 and uses it 50% for work. That means $600 is tax deductible. If the phone’s effective life is 3 years, Eve could claim roughly $200 per year. Effectively lowering Eve’s taxable income by $200 per financial year. 

Quick tip: Don’t forget to hold onto all your receipts and records.

Example: Eve reduced her taxable income by $534

Eve works in retail and uses her phone regularly for work, checking rosters, using business apps, and staying in touch with her team. 

This is a breakdown of what Eve can claim on tax:

• Phone plan: $50/month
  • Work use: 40% (July-Feb), 50% (March-June)
• Claimed plan deduction:
  • 8 months phone usage (July – Feb) at 40% work use = $160 in deductions
  •  4 months (March – June) at 50% work use = $80 in deductions 
• Phone cost: $1,100 (claimed over the time used for work)
  • Work use at 50% = $550 deductible, claimed over a 2-year depreciation 

Total deduction: $240 for her plan + $294 for her phone. 

That’s a $534 deduction on Eve’s overall taxable income.

Now that you know how you could claim your phone, let’s look at what you can’t claim.

4. What phone costs can't I claim? 

 To keep your claim in line with ATO rules and guidelines, here’s what you can’t include:

• Personal use (calls, texts, data)
• Any costs reimbursed by your employer 
• Work phone supplied by your employer
• One-off setup or installation fees

Now that you know what you can’t claim, let’s look at what records you’ll need.

5. What records do I need to provide?

Here’s what information you should keep handy when claiming:

• A 4-week log showing your work-related usage
• Phone bills that reflect your usage patterns
• Proof of purchase your phone (if claiming mobile device cost)

Quick tip: Keep your records for at least five years, the ATO may ask to see them.

Is now a smart time to upgrade before EOFY 2025?

Whether you’re upgrading your phone and plan or getting a new SIM Only Plan for work, doing it before June 30th could mean a tax time claim. 

How it works:

• If your phone costs under $300 – you could claim the work portion in full this financial year 
• If it’s over $300 – you’ll need to claim it over a period of 2 – 3 years 

Quick tip: Only the work-related portion is eligible for claims, so keep that in mind when working out your deductions.  

Explore the latest Vodafone EOFY offers

Disclaimer: This is not professional tax advice, and you should always consult a registered tax agent for professional advice related to your taxable income, tax deductions and tax returns. All information and claims presented can be found on the ATO website.