If you drive for Uber, deliver for DoorDash, or complete tasks through any gig platform in Australia, your mobile phone is not just a personal device, it is a core tool of your trade. You use it to receive job alerts, navigate to pickup and drop-off locations, communicate with customers, and manage your earnings. Because of this, the Australian Taxation Office (ATO) allows gig workers to claim a deduction for the work-related portion of their phone and data costs.
This guide explains exactly how the deduction works, how to calculate your work-use percentage, what records the ATO requires, and how to make sure you are claiming everything you are entitled to.
Can Gig Workers Claim Phone Deductions in Australia?
Yes. Under ATO rules, you can claim a deduction for the portion of your phone expenses that relate directly to earning your gig income. This includes:
- Your monthly mobile plan cost (calls, data, SMS)
- Pre-paid recharge costs
- The cost of the handset itself, if it is used for work
- Work-related apps purchased or subscribed to through your phone
The key rule is that you can only claim the work-related portion, not the full cost. If you use your phone for both personal and work purposes (which most people do), you must calculate what percentage of your total usage is work-related.
How to Calculate Your Work-use Percentage
The ATO requires you to calculate a representative work-use percentage based on actual usage over a minimum four-week period. You do not need to track every single call or data session for the entire year, a representative sample is sufficient. Here is how to do it:
Step 1: Choose a representative four-week period
Pick a four-week period that reflects your typical work pattern. If you only drive on weekends, make sure the sample period includes your normal weekend shifts.
Step 2: Track your usage during that period
For calls and SMS, note which were made or received for work purposes versus personal use. Your platform app will show active working hours which you can use as a reference. For data, most carriers allow you to see a breakdown of data used by apps in your account settings, the navigation app (Google Maps or Waze) and the gig platform app itself will show clearly as work-related usage.
Step 3: Calculate the percentage
Divide your work-related usage by your total usage and multiply by 100. For example, if 65% of your calls were work-related and 70% of your data went to work apps, you might land on a blended work-use percentage of around 65–70%.
Step 4: Apply that percentage to your annual phone costs
If your monthly plan costs $60 and your work-use percentage is 65%, your annual phone deduction is: $60 x 12 x 65% = $468.
What Counts as Work-related Phone Use for Gig Workers?
Work-related phone use includes:
- Time spent on the gig platform app while online and waiting for or completing jobs
- GPS navigation app usage during work trips
- Calls to customers about delivery locations or pickup details
- Messages sent through the platform or SMS to customers during a job
- Checking your earnings dashboard or platform inbox
- Work-related research such as checking traffic conditions
Personal use such as social media browsing, personal calls, streaming music or video, and shopping is not deductible.
Can You Claim the Cost of Your Handset?
Yes, with conditions depending on the cost of the device.
If the phone cost $300 or less: You can claim the full work-use percentage of the cost as an immediate deduction in the year of purchase. For example, a $280 phone with 65% work use = $182 deduction.
If the phone costs more than $300: You must depreciate the device over its effective life. The ATO sets the effective life of mobile phones at 3 years. So a $900 phone with 65% work use gives you a deduction of $900 ÷ 3 × 65% = $195 per year.
If your phone is used exclusively for work: You can claim the full cost (or full depreciation), but the ATO will scrutinise this claim. Having a separate personal phone makes this much easier to substantiate.
Can You Claim Your Mobile Data Plan?
Yes. Your mobile data plan is part of your phone expenses and is deductible at the same work-use percentage you calculate for your calls and general phone usage. If you have a separate data SIM or mobile broadband plan used primarily for navigation and platform access while working, a higher work-use percentage may be justified for that specific plan.
What Records Does the ATO Require?
The ATO requires you to be able to substantiate your claim. You should keep:
- A four-week usage diary or log showing work versus personal use (done once per year)
- Phone bills or account statements showing your monthly costs
- Receipts for any phone purchased and claimed
- If claiming depreciation, a record of the purchase date and cost
You do not need to keep receipts for individual calls or data sessions, the four-week representative sample is sufficient under ATO rules.
Work-related Apps and Subscriptions
In addition to the base phone plan, you can also claim the work-related portion of:
- Navigation apps with subscription fees (e.g. Waze Carpool, HERE Maps premium)
- Accounting or bookkeeping apps used to manage your gig income
- Mileage tracking apps used for logbook purposes
- Any other app used specifically for managing or completing gig work
Apps costing $300 or less can be claimed immediately. Apps costing more than $300 must be depreciated.
Can You Claim a Phone Mount or Car Charger?
Yes. Work-related accessories are deductible at your work-use percentage. This includes:
- Phone mounts (dashboard or windscreen)
- Car chargers and cables
- Bluetooth earpieces used during work calls (hands-free compliance)
- Protective cases if the phone is used primarily for work
Items under $300 can be claimed immediately. Items over $300 must be depreciated.
How to Include Your Phone Deduction in Your Tax Return
When you lodge your tax return through myTax or with a tax agent, phone and data deductions are claimed under the "Work-related expenses" section. Use the description "Mobile phone work-related portion" and enter the calculated deductible amount.
If you use Accounting Samurai to generate your Profit & Loss statement, your phone expenses will appear as a categorised line item that you or your tax agent can transfer directly into your return.
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Common Mistakes to Avoid
Claiming 100% of your phone costs: Unless you have a dedicated work phone with no personal use, the ATO will reject or flag a 100% claim. Always apply a genuine work-use percentage.
Not keeping a four-week usage diary: Without this record, the ATO can disallow your entire phone deduction if audited. The diary only needs to be done once per year and takes less than 30 minutes to set up.
Forgetting accessories: Phone mounts, chargers, and car charging cables are commonly overlooked but are legitimate deductions.
Forgetting the handset: Many gig workers claim the plan but forget they can also claim the depreciation on the phone itself.
Your mobile phone is one of the most important deductible expenses available to Australian gig workers but only if you calculate and document your claim correctly. Keep a four-week usage diary, retain your phone bills, and apply your work-use percentage to both your plan costs and your handset depreciation.
If you want a clean, professional record of all your gig work expenses including phone deductions, Accounting Samurai generates a Profit & Loss statement from your bank and card statements automatically.
