Updated for the 2025–26 income year (tax returns lodged from 1 July 2026), with 2026–27 changes noted. Reviewed 19 October 2026.
Can I claim my mobile phone on tax? Yes, for the part you use for work – both the handset and your plan (calls, data). You can't claim the private portion, and you can't claim anything your employer pays for or reimburses.
1. The handset
- Cost $300 or less: claim the work-use portion in full in the year you buy it (if you use it mainly to earn non-business income and it isn't part of a set over $300).
- Cost more than $300: claim the decline in value over its effective life – 3 years for mobile phones – multiplied by your work-use percentage.
If the handset is bundled into a monthly plan, the work-use portion still applies, but how you split the handset and service costs matters – check with your tax agent.
2. Calls, data and plan costs
Work out your work use from a 4-week representative period using an itemised bill or a diary of calls and data use, then apply that percentage to your bills for the year. For details, see our guide to claiming phone calls.
Incidental use: if your work use is incidental and your total claim for phone, data and internet is $50 or less, the ATO doesn't require records – but you still need a reasonable basis for the amount.
3. Working from home overlap
If you use the ATO's fixed rate method (70c per work hour for 2025–26), it already includes mobile and home phone usage and data. You can't claim those costs separately for the same period – but you can still claim the decline in value of the handset.
4. Worked example
Example (illustrative figures only): Ben buys a $1,200 phone on 1 July 2025 and his diary shows 30% work use. Decline in value (prime cost): $1,200 ÷ 3 years = $400 × 30% = $120 for 2025–26. His plan is $69 a month and 30% of his calls are for work: $69 × 30% × 12 = $248.40. If Ben used the fixed rate method for work-from-home hours, he'd need to make sure he isn't double-counting phone usage.
5. Records and what changes from 1 July 2026
Keep the purchase receipt, your bills and your 4-week diary or highlighted bill. From 2026–27, eligible employees receive an automatic standard deduction of up to $1,000, which is reduced by work-related phone and device claims – so smaller claims may not be worth itemising.
Frequently asked questions
What is the effective life of a mobile phone?
3 years under the ATO's effective life determination.
Can I claim 100% of my phone?
Only if you use it solely for work, which is rare. Most people claim a work-use percentage based on a 4-week record.
Do I need records for a small phone claim?
If work use is incidental and your total phone, data and internet claim is $50 or less, you don't need records, but your claim must be reasonable.
My employer pays my phone bill. Can I claim it?
No. You can't claim costs your employer pays or reimburses.