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Kat28(I'm new)I'm new
20 Feb 2024

Salary is split into salary+phone allowance. I want to use my own mobile, as it is more convenient. Can I claim tax deduction for the phone used for work later on? What does phone allowance include? Is it just for the device or includes plan as well? Is phone allowance taxed? If the employer splits the salary to include phone allowance, does it change the amount of tax I will be liable for (because I still earn the same salary, just part of it would now reflect as phone allowance on my payslip).

Pleaee guide me.

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Taxduck(Taxicorn)Taxicorn
20 Feb 2024

This link explains allowances. It should answer your queries.

https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/in-detail/occupation-and-industry-specific-guides/r-z/real-estate-employees-income-and-work-related-deductions/income-and-allowances

The information is for real estate employees but it is general information so would apply to other occupations.

Kat28(I'm new)I'm new
20 Feb 2024

@Taxduck Thank you for the information. So, as I understand I must consider allowance similar to income, since it would be taxed as well. Regarding work phone usage, I must keep records of usage and approximate charge, so if in case the usage exceeds the allowance received then I can claim a tax deduction. Am I correct?

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Can tax deduction be claimed, if personal device is used for work, whilst getting phone allowance? | ATO Community