Private ruling: Work related deductions
Date of advice: 4 September 2019
Published: November 2019
Ruling period: Period ended 30 June 20XX | Period ended 30 June 20XX | Period ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Can you claim 50% of the costs associated with your internet access plan? | A1: Yes. | Q2: Can you claim 50% of the costs associated with your mobile phone and landline plan? | A2: 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.

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