Claiming Internet on Tax

It’s important to know how to claim necessary expenses if you work from home, such as your internet bills.

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, updated on September 22nd, 2023       

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Are you curious about the possibility of claiming your internet bill on your tax return? It's a common question, especially for individuals who work from home, run a small business or use the internet extensively for work-related tasks.

Understanding the rules and regulations surrounding claiming internet expenses can help you maximise your tax benefits while staying compliant. Learn about the rules surrounding claiming internet bills on your tax return in Savvy’s handy guide today!

Can I claim my internet bill on tax?

You can claim part or all of your internet bill on tax, provided you’re eligible to do so. To claim your internet plan, you must demonstrate that the expense is directly related to earning your income. If you use the internet for both work-related and personal purposes, you can only claim the portion that relates to your work or business activities.

To accurately determine this, you’ll need to keep records of your business internet usage and be able to demonstrate how it's linked to your work. The ATO provides a few methods for calculating your deductible expenses, which are:

  • Revised fixed rate method: enables you to claim $0.67 per hour worked, requiring you to supply a record of hours worked from home and evidence of bills for internet
  • Actual cost method: enables you to claim the actual amount you spent while working from home, requiring you to supply detailed records and calculations based on hours worked from the entire financial year or a representative 28-day period (such as via a diary)

Once you work out the correct portion, you can claim your internet expenses as a deduction under the category of ‘Work-Related Expenses' on your tax return.

What else can I claim on tax if I work from home?

If you work from home, there are various other deductions you may be eligible to claim. These can include:

  • Utility bills: this can cover expenses like electricity, heating and cooling costs which are proportionate to the size of your home office space and the time you use it for work.
  • Phone bills: costs associated with work-related phone bills, both mobile and landline, can be claimed.
  • Depreciation of assets: you can claim deductions for the decline in value of work-related equipment and assets, such as furniture and computers, used in your home office.
  • Travel expenses: if your work requires you to travel, you can claim deductions for eligible travel expenses such as flights and petrol.
  • Office supplies: expenses related to the purchase of office supplies, such as stationery.

Remember that it's crucial to keep accurate records and consult with a tax professional or use tax preparation software to ensure you're claiming the correct deductions and complying with ATO guidelines. Tax laws and regulations can change, so it's always a good idea to stay informed about the latest updates.

Disclaimer: the information provided on this page is intended for general informational purposes only and should not be considered professional tax advice. Tax laws and regulations are subject to change and individual circumstances can vary significantly.

Before claiming any deductions on your tax return, it’s strongly recommended that you consult with a qualified tax professional or accountant who can provide personalised guidance based on your specific situation.

We encourage all users to exercise due diligence and prudence when making tax-related decisions. The Australian Taxation Office (ATO) is the authoritative source for official tax guidelines and regulations and you should refer to their resources or seek professional advice to ensure compliance with tax laws.

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Savvy is partnered with Econnex Comparison (CIMET Sales Pty Ltd, ABN 72 620 395 726) to provide readers with a variety of internet plans to compare. We do not compare all retailers in the market, or all plans offered by all retailers. Savvy earns a commission from Econnex each time a customer buys an internet plan via our website. We don’t arrange for products to be purchased directly, as all purchases are conducted via Econnex.

Any advice presented above is general in nature and doesn’t consider your personal or business objectives, needs or finances. It’s always important to consider whether advice is suitable for you before purchasing an internet plan. For further information on the variety of internet plans compared by Econnex, or how their business works, you can visit their website.