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jd1995(Newbie)Newbie
5 July 2023

I have a mobile phone plan for $130 per month, which includes both the device (mobile phone) repayment and the calls/data allowance.


The bill divides the $130 plan payment into two items:

  1. $70 for handset device repayment
  2. $60 for the mobile calls and data.

I use the phone exclusively for work.


When claiming a personal deduction, would I be able claim the $130 x 12 months as a work related expense deduction; or would I only be able to claim the $60 x 12 months and then the depreciation on the handset?

2,791 views
4 replies
2,791 views
4 replies

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Most helpful reply

AriATO(Community Support)Community Support
6 July 2023

Hi @jd1995


You'll claim the cost of your calls and data and you'll have to depreciate the handset. You've been given some great info about claiming the decline in value.

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FinanceDude(Champion)Champion
5 July 2023

Below is from the Mobile phone, mobile internet and other devices webpage...


How you treat and work out your deduction will depend on if the item cost:

$300 or less

An immediate deduction is available for items that cost $300 or less, if you use them more than 50% of the time for a work purpose. You must satisfy the conditions of 4 tests to claim an immediate deduction.


More than $300

You can claim a deduction for the decline in value over the effective life of the item, if the item cost more than $300.



Liked by jd1995

Most helpful reply

AriATO(Community Support)Community Support
6 July 2023

Hi @jd1995


You'll claim the cost of your calls and data and you'll have to depreciate the handset. You've been given some great info about claiming the decline in value.

Liked by jd1995
jd1995(Newbie)Newbie
6 July 2023

Thanks for the guidance @AriATO.


In terms of claiming the decline in value for my handset, what value do I then use as the purchase price? As it is a 24 month plan, I am paying off the handset over a two year period. I am only 1 year into the plan. Would the starting purchase be the monthly cost ($70) x 24 months, even though I have only incurred the cost for 12 months to date?


I can’t find any guidance on the ATO website for this specific circumstance but please let me know if there is information you can point me to.

CaroATO(Community Support)Community Support
10 July 2023

Hi @jd1995,


You'll need to know what the full purchase price was for the handset. Have a think about asking your provider and use this figure as the purchase price.


You may need to amend the tax return where you started to use the handset to start the deduction.

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Mobile phone handset & call/data plan deducation | ATO Community