If you've purchased a mobile phone for work purposes, you may be able to claim the cost on your 2026 tax return. However, the Australian Taxation Office (ATO) has specific rules about what you can and cannot deduct, so it's important to understand the requirements before lodging your claim.
Can You Claim a Mobile Phone for Work?
You can only claim a deduction for a mobile phone if you use it for work-related purposes. The key principle is that the expense must be directly connected to earning your income. If you use your phone for both personal and work purposes, you can only claim the work-related portion of the cost.
What Costs Can You Claim?
| Expense Type | Claimable? | Details |
|---|---|---|
| Phone purchase under AUD 300 | Yes | Claim full amount in the year of purchase |
| Phone purchase AUD 300 or more | Yes | Claim depreciation over several years using diminishing value method |
| Phone bills (work-related portion) | Yes | Claim only the percentage used for work (e.g., 80% if 80% work use) |
| Phone insurance | No | Not separately deductible |
| Phone repairs | No | Not separately deductible |
| Accessories | No | Not separately deductible |
Keeping Records
The ATO requires you to keep records to support your claim. This includes receipts for the phone purchase, copies of your phone bills, and documentation showing how you've calculated the work-related percentage. A simple diary or log showing your work usage over a representative period can help justify your claim.
What You Cannot Claim
You cannot claim the cost of a phone if it's used purely for personal purposes, even if you occasionally use it for work. Additionally, phone insurance, phone repairs, and accessories are considered part of your overall phone expenses and should be included in your work-related percentage calculation rather than claimed separately.
When in doubt, consult with a tax professional to ensure your claim complies with ATO guidelines and maximises your deductions appropriately.
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