Private ruling: Work-related expenses
Published: October 2014
Ruling period: Year ended 30 June 2014
Date scheme commenced: 1 July 2013

Ruling: Q1: Are you entitled to a deduction for your smartphone data usage and applications software (Apps) costs? | A1: Yes.

Relevant facts and circumstances: You work in the public health sector. Your employer has authorised you to use your privately owned mobile device at work to access work related websites and e-references. You have purchased Apps to have direct access to certain work-related websites. These Apps are used for work only. By having your mobile device with you, you no longer have to wait for a desktop computer to become available and you are able to access the required information immediately. You are on a mobile device plan which includes 1GB of data. You use your mobile internet usage for work only.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1

Reasons for decision: Summary: Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 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, or relate to the earning of exempt income. Where a taxpayer uses information from the internet in the course of carrying out work-related activates, the work-related portion of the fee paid to the service provider is an allowable deduction. In your case, your employer has authorised the use of your personal smartphone at work to access clinical information to assist you with your duties. You use the internet on your phone only for work purposes and have purchased apps which you use only for work purposes. Internet data packs and apps purchased for work purposes are an allowable deduction under section 8-1 of the ITAA 1997.Consequently you are entitled to claim a deduction for the portion of your smartphone phone plan which is incurred for data usage. You are also entitled to a deduction for the cost of the apps which you use solely for work purposes. When determining the amount of any deduction for data usage you would be required to make a reasonable apportionment of the costs incurred for the data. One basis which may be accepted by the Commissioner is determine what the data attached to a phone plan would be valued at and use this amount.