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Edited version of private advice
Authorisation Number: 1051577217558
Date of advice: 4 September 2019
Ruling
Subject: Work related deductions
Question 1
Can you claim 50% of the costs associated with your internet access plan?
Answer
Yes.
Question 2
Can you claim 50% of the costs associated with your mobile phone and landline plan?
Answer
Yes.
Section 8-1 of the Income Tax Assessment Act 1997 allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income except where the outgoings are of a capital, private or domestic nature.
In your case, your expenses are deductible to the extent that they are incurred for work purposes.
This ruling applies for the following periods:
Period ended 30 June 20XX
Period ended 30 June 20XX
Period ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your place of business is based in your home.
Your current internet plan allows your business to have unlimited broadband access.
The internet is essential for your core business needs.
You also use your internet for personal reasons.
Your business requires you to have a mobile phone plan.
You current mobile phone plan provides you with unlimited calls and text.
Your mobile phone plan is sometimes used for personal calls and texts.
You have estimated the business use of your internet plan at 50%, being the time spent working at the computer where the internet has to be available.
You have estimated the business use of your mobile phone and landline plan at 50%.
Relevant legislative provisions
Income tax Assessment Act 1997 Subsection 8-1