Class Ruling CR 2015/106
Date of effect: 10 November 2014

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provisions identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provision(s) 2. The relevant provisions dealt with in this Ruling are: Class of entities 3. The classes of entities to which this Ruling applies are: Qualifications 4. The Commissioner makes this Ruling on the precise scheme identified in this Ruling. 5. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 16 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then:

Class of entities or scheme: 3. The classes of entities to which this Ruling applies are: | Qualifications: 4. The Commissioner makes this Ruling on the precise scheme identified in this Ruling. 5. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 16 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. This Ruling applies from 10 November 2014 to 10 November 2019. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 8. The following description of the scheme is based on information provided by the applicant in the application for Class Ruling dated 14 May 2015, information provided on the Mobilyser Web Portal at www.mobilyser.net/ and information provided on 13 August 2015. 9. Mobilyser is a phone app that is downloaded to a mobile phone by the user. 10. Mobilyser is used to calculate the percentage of a user's mobile phone calls that are work related. This percentage can then be applied to the portion of the phone bill that is related to receiving and making phone calls on the mobile phone. 11. Once the app is downloaded the user will open the app to: 12. When a call is made or received from a listed contact, Mobilyser will use the recorded tag to classify the call as 'work' or 'personal'. 13. If a call is made or received from a number that is not a listed contact, Mobilyser will send a pop-up notification asking the user to set the tag for that number as 'work' or 'personal'. If a tag is not set, Mobilyser will apply the 'default tag' to the number. 14. At the end of the month (or the selected period) the user can generate a Mobilyser app report by entering the total amount owing for the period and selecting the method to be used to calculate the business percentage. 15. Mobilyser provides three alternate methods for calculating the business percentage. They are: 16. The Mobilyser app report includes the following information: 17. Where the 'default tag' on the app for calls is set as 'personal', the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used to calculate the amount of the income tax deduction that can be claimed for the mobile phone costs incurred by an individual taxpayer under section 8-1 of the ITAA 1997. 18. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report to calculate the amount of the expense relating to an employee's mobile phone that is an exempt benefit under section 20A of the FBTAA if the employer completes a No private use declaration-expense payment benefits declaration. 19. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report to calculate the proportion of the use of an employer's mobile phone by an employee that is an exempt benefit under section 47A of the FBTAA if the employer completes a No private use declaration-residual benefits declaration. 20. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to private purposes shown in the Mobilyser app report to calculate the notional taxable value of the expense payment or residual benefit for the purposes of determining whether the benefit is an exempt minor benefit under section 58P of the FBTAA. 21. The Mobilyser app report is not relevant for determining whether an expense payment or residual benefit is an exempt benefit under section 58X of the FBTAA. 22. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used by an employee when completing an expense payment benefit declaration or a recurring expense payment fringe benefit declaration for the purpose of enabling the employer to reduce the taxable value of an expense payment that relates to the employee's mobile phone using the 'otherwise deductible' rule in section 24 of the FBTAA. 23. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used by an employee when completing a residual benefit declaration or a recurring residual fringe benefit declaration for the purpose of enabling the employer to reduce the taxable value of a residual fringe benefit that arises from the use of an employer's mobile phone by an employee using the 'otherwise deductible' rule in section 52 of the FBTAA. 24. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report that relates to a year that is covered by a recurring fringe benefit declaration is not more than 10% less than the deductible percentage shown in the declaration. Commissioner of Taxation 16 December 2015 Can the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report be used to calculate the amount of the income tax deduction claimed under section 8-1 of the ITAA 1997 for the mobile phone costs incurred? 25. In general terms, section 8-1 of the ITAA 1997 enables an income tax deduction to be claimed for a loss or outgoing incurred in gaining or producing assessable income, unless the loss or outgoing is of a private or domestic nature. However, to claim a deduction, it is necessary for records to be kept that substantiate the amount of the expense and the proportion of the expense that is work related. 26. Generally, an individual taxpayer who uses their mobile phone for work purposes is able to claim an income tax deduction for the work related use under section 8-1 of the ITAA 1997 if he or she has records that substantiate the amount of the expense and the proportion of the expense that is work related. 27. Guidance for considering whether the Mobilyser app report provides the information required for an income tax deduction to be claimed under section 8-1 of the ITAA 1997 is provided in Practice Statement Law Administration PS LA 2001/6 Home office and electronic device expenses and in Claiming mobile phone, internet and home phone expenses which is available on the ATO website at www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/ . 28. These guidelines provide that records must be kept for a four week representative period in each income year to claim an income tax deduction of greater than $50. These records may include diary entries, including electronic records and bills. In addition, evidence that the employer expects the employee to work at home or make work related calls using a mobile telephone will assist with claiming a deduction. 29. The guidelines require the percentage of the total use of a mobile phone that relates to work purposes to be worked out using a reasonable basis. In discussing what is a reasonable basis for determining a work related percentage for mobile phone expenses section 10 of PS LA 2001/6 states: 30. The guidelines for home telephone use in section 8 of PS LA 2001/6 states: Business calls (incoming and outgoing) / total calls (incoming and outgoing) 31. Mobilyser provides three alternate methods for calculating the percentage of the total use of the mobile phone that relates to work purposes. They are: 32. In applying the guidelines in PS LA 2001/6, it is accepted that each of these methods provides a reasonable basis for determining the work related percentage to be applied to the portion of the phone bill that is related to receiving and making phone calls. 33. Therefore, provided the 'default tag' on the app for calls is set as 'personal' (so as to ensure a private call will not be recorded as 'work'), where the Mobilyser is used for a representative four week period, the percentage of the total use of a mobile phone that relates to work purposes shown in the Mobilyser app report can be used to calculate a work related percentage of mobile phone expenses for which an income tax deduction can be claimed under section 8-1 of the ITAA 1997. Can the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report be used to determine whether a benefit is an exempt benefit, or to calculate the taxable value of a fringe benefit arising from mobile phone usage by an employee? 34. In general terms, an employer is liable to pay fringe benefits when a benefit is provided to an employee. An employee will receive a benefit when: 35. However, a fringe benefits tax liability will not arise if: | Exempt benefits: 36. A benefit received by an employee that relates to a mobile phone may be an exempt benefit under: | Exemption under section 20A or 47A of the FBTAA: 37. An expense payment benefit will be an exempt benefit under section 20A of the FBTAA where the employer completes a No private use declaration-expense payment benefits declaration. An employer may use this declaration for an expense payment benefit that relates to the employee's mobile phone where the employer only pays or reimburses the mobile phone expenses that the employee could have claimed as an income tax deduction if the payment or reimbursement had not been made by the employer. 38. Similarly, a residual benefit will be an exempt benefit under section 47A of the FBTAA where the employer completes a No private use declaration-residual benefits declaration. An employer may use this declaration for a residual benefit that relates to the employee's use of the employer's mobile phone where there is a consistently enforced prohibition on the private use of the phone. 39. The two declarations are available at https://www.ato.gov.au/Forms/Declarations/ . 40. Where the 'default tag' on the app for calls is set as 'personal' (so as to ensure a private call will not be recorded as 'work'), an employer can use the Mobilyser app report to: | Exemption under section 58P of the FBTAA: 41. In general terms, a benefit will be an exempt benefit under section 58P of the FBTAA where: 42. The notional value is the value that will be the taxable value if the benefit is a fringe benefit. In the context of the benefits provided in relation to a mobile phone this will be: 43. In accordance with the conclusions reached in paragraph 33 of this Ruling it is accepted that where the 'default tag' on the app for calls is set as 'personal', an employer can use the Mobilyser app report to: 44. Where this value is less than $300, the benefit may be an exempt benefit under section 58P of the FBTAA if it would be unreasonable having regard to the specified criteria in paragraph 58P(1)(f) to treat the benefit as a fringe benefit. 45. Guidance for considering the criteria in paragraph 58P(1)(f) of the FBTAA is provided in paragraphs 193 to 245 of Taxation Ruling TR 2007/12 Fringe benefits tax: minor benefits. | Exemption under section 58X of the FBTAA: 46. In general terms, section 58X of the FBTAA provides that: will be an exempt benefit. 47. Subsection 58X(2) of the FBTAA provides that a portable electronic device is an eligible work related item if it is primarily for use in the employee's employment. A mobile phone is an example of a portable electronic device. 48. An item is primarily for use in an employee's employment if it is provided principally to enable the employee to do their job. 49. The decision about whether an item is primarily for use in the employee's employment is based on the employee's intended use at the time the benefit is provided to them. The employee's actual usage of the item is not determinative of whether it is used primarily in the employee's employment. 50. Therefore, the Mobilyser app report will not be relevant when determining whether an expense payment or residual benefit is an exempt benefit under section 58X of the FBTAA. | The application of the 'otherwise deductible' rule: 51. Section 24 of the FBTAA provides that where the recipient of an expense payment fringe benefit is an employee, the taxable value of an expense payment fringe benefit may be able to be reduced in accordance with the 'otherwise deductible' rule. A similar reduction is provided for residual fringe benefits provided to an employee in section 52 of the FBTAA. 52. Broadly, the 'otherwise deductible' rule enables the taxable value of a fringe benefit to be reduced by the amount the employee would have been entitled to claim as an income tax deduction if the employer had not paid or reimbursed the expense, or provided the use of a mobile phone to the employee. For example, if 80% of the calls made using a mobile phone are work related the 'otherwise deductible' rule enables the taxable value of the fringe benefit to be reduced by 80% if the substantiation requirements are met. | Employee declarations: 53. Generally, the use of the 'otherwise deductible' rule in relation to an expense payment fringe benefit or a residual fringe benefit that relates to a mobile phone requires an employer to obtain an employee declaration from the employee. In completing an employee declaration an employee is required to provide details of the purposes for which a benefit has been provided and the percentage of the cost that the employee would have been able to claim as an income tax deduction. The expense payment benefit declaration and the residual benefit declaration are available at https://www.ato.gov.au/Forms/Declarations/ . 54. As discussed at paragraphs 25 to 33 of this Ruling, an employee who does not have his or her mobile phone costs paid or reimbursed by the employer is able to use the Mobilyser app report to calculate the amount of the income tax deduction. Similarly, the Mobilyser app report can also be used by the employee when completing an expense payment benefit declaration or a residual benefit declaration. | Recurring fringe benefit declaration: 55. An employee who receives identical expense payment or residual benefits over a five year period is able to make a recurring fringe benefit declaration that will apply to all of the benefits under section 152A of the FBTAA if the deductible proportion of the later benefits is not more than 10% less than the percentage stated in the declaration. 56. The following example regarding the use of a recurring residual fringe benefit declaration is provided in part 18.8 of Fringe benefits tax - a guide for employers: 57. In accordance with the discussion at paragraph 54 of this Ruling in relation to the use of the Mobilyser app report to complete an expense payment benefit declaration or a residual benefit declaration, the Mobilyser app report can be used to determine the deductible proportion for the purposes of completing a Recurring expense payment fringe benefit declaration or a Recurring residual fringe benefit declaration. Both of these declarations are available at https://www.ato.gov.au/Forms/Declarations/ . 58. Although not specifically required, a Mobilyser app report that relates to a subsequent year that is covered by a recurring fringe benefit declaration can be used to confirm that the deductible percentage was not more than 10% less than the deductible percentage shown in the recurring fringe benefit declaration. 59. The following is a detailed contents list for this Ruling: © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Not previously issued as a draft

Ruling: 17. Where the 'default tag' on the app for calls is set as 'personal', the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used to calculate the amount of the income tax deduction that can be claimed for the mobile phone costs incurred by an individual taxpayer under section 8-1 of the ITAA 1997. 18. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report to calculate the amount of the expense relating to an employee's mobile phone that is an exempt benefit under section 20A of the FBTAA if the employer completes a No private use declaration-expense payment benefits declaration. 19. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report to calculate the proportion of the use of an employer's mobile phone by an employee that is an exempt benefit under section 47A of the FBTAA if the employer completes a No private use declaration-residual benefits declaration. 20. Where the 'default tag' on the app for calls is set as 'personal', an employer can use the percentage of the total mobile phone usage that relates to private purposes shown in the Mobilyser app report to calculate the notional taxable value of the expense payment or residual benefit for the purposes of determining whether the benefit is an exempt minor benefit under section 58P of the FBTAA. 21. The Mobilyser app report is not relevant for determining whether an expense payment or residual benefit is an exempt benefit under section 58X of the FBTAA. 22. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used by an employee when completing an expense payment benefit declaration or a recurring expense payment fringe benefit declaration for the purpose of enabling the employer to reduce the taxable value of an expense payment that relates to the employee's mobile phone using the 'otherwise deductible' rule in section 24 of the FBTAA. 23. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report can be used by an employee when completing a residual benefit declaration or a recurring residual fringe benefit declaration for the purpose of enabling the employer to reduce the taxable value of a residual fringe benefit that arises from the use of an employer's mobile phone by an employee using the 'otherwise deductible' rule in section 52 of the FBTAA. 24. Where the 'default tag' on the app for calls is set as 'personal' the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report that relates to a year that is covered by a recurring fringe benefit declaration is not more than 10% less than the deductible percentage shown in the declaration. Commissioner of Taxation 16 December 2015


Appendix: Can the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report be used to calculate the amount of the income tax deduction claimed under section 8-1 of the ITAA 1997 for the mobile phone costs incurred? 25. In general terms, section 8-1 of the ITAA 1997 enables an income tax deduction to be claimed for a loss or outgoing incurred in gaining or producing assessable income, unless the loss or outgoing is of a private or domestic nature. However, to claim a deduction, it is necessary for records to be kept that substantiate the amount of the expense and the proportion of the expense that is work related. 26. Generally, an individual taxpayer who uses their mobile phone for work purposes is able to claim an income tax deduction for the work related use under section 8-1 of the ITAA 1997 if he or she has records that substantiate the amount of the expense and the proportion of the expense that is work related. 27. Guidance for considering whether the Mobilyser app report provides the information required for an income tax deduction to be claimed under section 8-1 of the ITAA 1997 is provided in Practice Statement Law Administration PS LA 2001/6 Home office and electronic device expenses and in Claiming mobile phone, internet and home phone expenses which is available on the ATO website at www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/ . 28. These guidelines provide that records must be kept for a four week representative period in each income year to claim an income tax deduction of greater than $50. These records may include diary entries, including electronic records and bills. In addition, evidence that the employer expects the employee to work at home or make work related calls using a mobile telephone will assist with claiming a deduction. 29. The guidelines require the percentage of the total use of a mobile phone that relates to work purposes to be worked out using a reasonable basis. In discussing what is a reasonable basis for determining a work related percentage for mobile phone expenses section 10 of PS LA 2001/6 states: 30. The guidelines for home telephone use in section 8 of PS LA 2001/6 states: Business calls (incoming and outgoing) / total calls (incoming and outgoing) 31. Mobilyser provides three alternate methods for calculating the percentage of the total use of the mobile phone that relates to work purposes. They are: 32. In applying the guidelines in PS LA 2001/6, it is accepted that each of these methods provides a reasonable basis for determining the work related percentage to be applied to the portion of the phone bill that is related to receiving and making phone calls. 33. Therefore, provided the 'default tag' on the app for calls is set as 'personal' (so as to ensure a private call will not be recorded as 'work'), where the Mobilyser is used for a representative four week period, the percentage of the total use of a mobile phone that relates to work purposes shown in the Mobilyser app report can be used to calculate a work related percentage of mobile phone expenses for which an income tax deduction can be claimed under section 8-1 of the ITAA 1997. Can the percentage of the total mobile phone usage that relates to work purposes shown in the Mobilyser app report be used to determine whether a benefit is an exempt benefit, or to calculate the taxable value of a fringe benefit arising from mobile phone usage by an employee? 34. In general terms, an employer is liable to pay fringe benefits when a benefit is provided to an employee. An employee will receive a benefit when: 35. However, a fringe benefits tax liability will not arise if: | Exempt benefits: 36. A benefit received by an employee that relates to a mobile phone may be an exempt benefit under: | Exemption under section 20A or 47A of the FBTAA: 37. An expense payment benefit will be an exempt benefit under section 20A of the FBTAA where the employer completes a No private use declaration-expense payment benefits declaration. An employer may use this declaration for an expense payment benefit that relates to the employee's mobile phone where the employer only pays or reimburses the mobile phone expenses that the employee could have claimed as an income tax deduction if the payment or reimbursement had not been made by the employer. 38. Similarly, a residual benefit will be an exempt benefit under section 47A of the FBTAA where the employer completes a No private use declaration-residual benefits declaration. An employer may use this declaration for a residual benefit that relates to the employee's use of the employer's mobile phone where there is a consistently enforced prohibition on the private use of the phone. 39. The two declarations are available at https://www.ato.gov.au/Forms/Declarations/ . 40. Where the 'default tag' on the app for calls is set as 'personal' (so as to ensure a private call will not be recorded as 'work'), an employer can use the Mobilyser app report to: | Exemption under section 58P of the FBTAA: 41. In general terms, a benefit will be an exempt benefit under section 58P of the FBTAA where: 42. The notional value is the value that will be the taxable value if the benefit is a fringe benefit. In the context of the benefits provided in relation to a mobile phone this will be: 43. In accordance with the conclusions reached in paragraph 33 of this Ruling it is accepted that where the 'default tag' on the app for calls is set as 'personal', an employer can use the Mobilyser app report to: 44. Where this value is less than $300, the benefit may be an exempt benefit under section 58P of the FBTAA if it would be unreasonable having regard to the specified criteria in paragraph 58P(1)(f) to treat the benefit as a fringe benefit. 45. Guidance for considering the criteria in paragraph 58P(1)(f) of the FBTAA is provided in paragraphs 193 to 245 of Taxation Ruling TR 2007/12 Fringe benefits tax: minor benefits. | Exemption under section 58X of the FBTAA: 46. In general terms, section 58X of the FBTAA provides that: will be an exempt benefit. 47. Subsection 58X(2) of the FBTAA provides that a portable electronic device is an eligible work related item if it is primarily for use in the employee's employment. A mobile phone is an example of a portable electronic device. 48. An item is primarily for use in an employee's employment if it is provided principally to enable the employee to do their job. 49. The decision about whether an item is primarily for use in the employee's employment is based on the employee's intended use at the time the benefit is provided to them. The employee's actual usage of the item is not determinative of whether it is used primarily in the employee's employment. 50. Therefore, the Mobilyser app report will not be relevant when determining whether an expense payment or residual benefit is an exempt benefit under section 58X of the FBTAA. | The application of the 'otherwise deductible' rule: 51. Section 24 of the FBTAA provides that where the recipient of an expense payment fringe benefit is an employee, the taxable value of an expense payment fringe benefit may be able to be reduced in accordance with the 'otherwise deductible' rule. A similar reduction is provided for residual fringe benefits provided to an employee in section 52 of the FBTAA. 52. Broadly, the 'otherwise deductible' rule enables the taxable value of a fringe benefit to be reduced by the amount the employee would have been entitled to claim as an income tax deduction if the employer had not paid or reimbursed the expense, or provided the use of a mobile phone to the employee. For example, if 80% of the calls made using a mobile phone are work related the 'otherwise deductible' rule enables the taxable value of the fringe benefit to be reduced by 80% if the substantiation requirements are met. | Employee declarations: 53. Generally, the use of the 'otherwise deductible' rule in relation to an expense payment fringe benefit or a residual fringe benefit that relates to a mobile phone requires an employer to obtain an employee declaration from the employee. In completing an employee declaration an employee is required to provide details of the purposes for which a benefit has been provided and the percentage of the cost that the employee would have been able to claim as an income tax deduction. The expense payment benefit declaration and the residual benefit declaration are available at https://www.ato.gov.au/Forms/Declarations/ . 54. As discussed at paragraphs 25 to 33 of this Ruling, an employee who does not have his or her mobile phone costs paid or reimbursed by the employer is able to use the Mobilyser app report to calculate the amount of the income tax deduction. Similarly, the Mobilyser app report can also be used by the employee when completing an expense payment benefit declaration or a residual benefit declaration. | Recurring fringe benefit declaration: 55. An employee who receives identical expense payment or residual benefits over a five year period is able to make a recurring fringe benefit declaration that will apply to all of the benefits under section 152A of the FBTAA if the deductible proportion of the later benefits is not more than 10% less than the percentage stated in the declaration. 56. The following example regarding the use of a recurring residual fringe benefit declaration is provided in part 18.8 of Fringe benefits tax - a guide for employers: 57. In accordance with the discussion at paragraph 54 of this Ruling in relation to the use of the Mobilyser app report to complete an expense payment benefit declaration or a residual benefit declaration, the Mobilyser app report can be used to determine the deductible proportion for the purposes of completing a Recurring expense payment fringe benefit declaration or a Recurring residual fringe benefit declaration. Both of these declarations are available at https://www.ato.gov.au/Forms/Declarations/ . 58. Although not specifically required, a Mobilyser app report that relates to a subsequent year that is covered by a recurring fringe benefit declaration can be used to confirm that the deductible percentage was not more than 10% less than the deductible percentage shown in the recurring fringe benefit declaration.


What this Ruling is about | NOT LEGALLY BINDING SECTION: | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | 10. Mobile phone expenses | The relevance of type of use can be significant. Thus, if a taxpayer predominantly uses a mobile phone for phone calls then analysis of phone call use will provide the most relevant measure of use. In such cases the guidelines for home telephone use set out in section 8 of this practice statement are relevant. | An employee lives in a house provided by the employer. The telephone service to the house is in the name of the employer and the employer pays each telephone bill. Use of the telephone is a residual fringe benefit. | The employee gives the employer a recurring fringe benefit declaration which specifies that the deductible proportion of the use of the telephone is 80%. The declaration covers all further use of the telephone over the next five years, providing that the employment-related use of the telephone is not less than 70%. If the employment-related use of the telephone drops to less than 70%, another declaration is required. | Appendix 2 - Detailed contents list


Related rulings: TR 2006/10 TR 2007/12
Legislative references: FBTAA 1986 FBTAA 1986 20 FBTAA 1986 20A FBTAA 1986 24 FBTAA 1986 45 FBTAA 1986 47A FBTAA 1986 52 FBTAA 1986 58P FBTAA 1986 58X FBTAA 1986 136(1) ITAA 1997 ITAA 1997 8-1
Other references: Australian Taxation Office 2015, Claiming mobile phone, internet and home phone expenses , viewed 20 August 2015 Fringe benefits tax - a guide for employers Explanatory Memorandum to Tax Laws Amendment (Small Business Measures No. 3) Bill 2015 PS LA 2001/6 Home office and electronic device expenses