Can You Claim Mobile Phones on Your Tax Return in Australia?
As the end of June nears, people are looking for smart ways to maximise their tax returns. If you use your personal phone to answer work emails, make business calls, or run a side hustle, you’ve probably wondered, “Can I claim a new phone on my tax return?” Does it even count if the phone is certified refurbished rather than brand new?
The short answer is a resounding yes!
The Australian Taxation Office (ATO) does not distinguish between a brand-new device and a pristine, certified refurbished device. What matters is how you use it to earn your income.
Many savvy small businesses, freelancers, and sole traders choose refurbished tech because it keeps initial equipment costs down while still providing access to the same tax depreciation or immediate write-off benefits. Let’s find out whether you can claim tax deductions on your new phone and how.
Australian Taxation office(ATO) - Rules for Mobile Phone Claims
When it comes to claiming work-related expenses, the ATO’s core rule is straightforward. The item must be directly related to earning your income. However, how you claim it depends entirely on whether you are filing as an individual employee or as a small business owner.
The $300 Rule for Individuals
For an individual employee claiming work-related device on their personal tax return, the threshold is $300:
- Under $300: If your refurbished phone costs $300 or less, you can generally claim an immediate, outright deduction for the work-related portion in your current tax return.
- Over $300: If the device costs more than $300, it cannot be fully written off in a single year. Instead, you claim its decline in value over time, which is called depreciation, based on its expected useful life.
Small Business Owners and Sole Traders: The $20,000 Instant Asset Write-off (IAWO)
If you operate an eligible small business with an aggregated annual turnover of less than $10 million, the tax incentives get even better. Under the $20,000 instant asset write-off (IAWO) provisions, eligible businesses can immediately deduct the business portion of qualified assets costing less than $20,000 per asset.
As this threshold applies on a per-asset basis, it is the perfect opportunity to avoid paying full retail prices and upgrade your entire workspace. Instead of paying full price for a brand-new gadget, you can invest in multiple commercial-grade, premium refurbished iPhones or iPads from Mobile Guru.
Update your mobile sales team's handsets or pick up high-performance tablets for client presentations and write them off entirely in this year's tax return. This is provided they are first used or installed ready for use before midnight on 30 June.
Essential Rules to Make Your Tech Claim Bulletproof
Before you go writing off a top-tier flagship device on your tax return, make sure you clear the ATO's golden rules.
The Core Requirements:
- Out-of-Pocket Expenses: You must have spent the cash yourself from your own pocket to make a valid tax claim.
- No Boss Reimbursements: If your employer paid you back or bought the phone for you, you cannot claim it at all.
- Direct Work Connection: The device must be used for tasks like calling clients or running a business to earn your income.
- Work-Related Apportionment: If you use the phone sixty per cent for work tasks, you can only claim sixty per cent of the total cost.
Important Details to Watch:
| ⚠️Watch Out for Bundle Packages | 📄Legitimate Tax Receipts |
|---|---|
| Items bought together might be treated as a single set by the ATO. If you are bundling a phone, case, and accessories, check with your accountant first to avoid accidentally exceeding the $300 threshold on your combined purchase receipt. | To make a successful claim, you need a valid Australian Tax Invoice showing the merchant's details, a clear ABN, and a GST breakdown. At Mobile Guru, we automatically attach a fully compliant invoice to every single order to make tax time completely stress-free for you. |
Can You Claim a Refurbished Phone on Your Tax Return?
Yes, absolutely. A refurbished phone can generally be claimed in the same way as a new phone, provided it meets the ATO's normal work-related expense rules.
The ATO focuses on how the device is used to earn income, not whether it is brand new or refurbished. If you purchase a refurbished phone and use it for work or business activities, the deduction is based on the portion of your use for work. For example,
- Answering work calls
- Managing client emails
- Using business apps
- Running a side business or freelance operation
Why Is EOFY the Smartest Time to Buy Refurbished Tech?
Buying a refurbished gadget before 30 June lets you pull your device deductions forward into the current financial year. Moreover, by taking advantage of the Mobile Guru EOFY tech sale, you can benefit in three ways:
- Skip the Retail Markup: You save hundreds upfront compared to buying brand-new devices.
- Guaranteed Protection: Every single device includes a guaranteed 24-month warranty and has passed our rigorous 72-point technical audit.
- Instant Cash Flow Relief: Combine your immediate tax benefits with flexible payment options at checkout, like Afterpay and Zip. This allows you to spread out the physical costs while keeping your immediate tax invoice.
The Ultimate Cash Flow Loop: Sell Before You Buy
Want to take your EOFY financial strategy to the next absolute level? Then, don't let your current phone sit idle in a desk drawer, losing its market value when it can actively fund your next tax deduction.
Before you finalise your upgrade with us today, head over to our trade-in page at Mobile Guru. You can lock in the maximum payout rate before June ends and sell your old phone, iPad, or laptop for fast cash straight to your bank account. You can use those funds to offset the price for your new, tax-deductible refurbished device. It's the smartest way to make your business hardware upgrade completely budget-neutral.
So, don’t wait longer—get a refurbished phone before the EOFY tech sale ends and make your claim to get tax deductions. If you’ve got any questions, call us on 1300 362 017 or send us an email at hello@mobileguru.com.au.
Disclaimer: This guide provides general educational information. Tax laws can be nuanced based on your personal circumstances. Always consult a registered tax agent or accountant to get advice tailored to your specific situation.
