Tech can be taxing

Work 24/ 7? reports you can claim technology off your tax

Anthony Keane

TECHNOLOGY and tax deductions are combining to deliver Australians a financial boost, but those who bend the rules are likely to get caught.

A surge in people working from home and using devices such as mobile phones and iPads for work- related tasks has opened the door to a new wave of tax deductions.

Claims for “other workrelated expenses”, which include mobile phones and internet, climbed to a record $ 7.9 billion last year – up almost 50 per cent in a decade.

ATO assistant commissioner Adam Kendrick said an increase in technology was a driver of this growth.

“Changes to technology and also to the labour market has led to employees taking on more costs,” he said.

However, only work- related use can be claimed, and records must be kept to separate this from private use.

NDA Law managing director Andrea Michaels said tax- deductible work- related technology expenses could include: • of mobile phone purchase and usage costs; • computers and laptops used for work; • such as USB sticks and printers if used for work; • of home internet monthly costs; • used in the course of doing your work.

“People are on their phones… so they are legitimately using technology for work,” Ms Michaels said.

“But there are some people out there claiming more than they should. There are lots of good opportunities for claiming tax deductions for technology, but be reasonable and be able to substantiate it.” Mr Kendrick said the ATO’s data matching technology enabled it to compare people’s claims with others in similar jobs. “The ATO has more data available than ever and can access it to verify, for example, your telephone use.”

It also speaks with employers. “We had an example of one employer group with thousands of people claiming 100 per cent of their mobile phone bills,” Mr Kendrick said.

“When we went and spoke to the employer we found they weren’t allowed to use their mobile phone for OH & S reasons… because of the nature of what they were doing.”

The workers had seen tax agents who were spruiking their ability to get big deductions, but those deductions were wrong.

“We will allow you to claim up to $ 50 without keeping records for your mobile phone,” Mr Kendrick said. “For other items you need to keep records for a one- month period.”