Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The service is used to carry on the business.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Private household use is excluded.
- Do not separately claim phone, internet, energy, stationery or consumables already covered by a home-business fixed-rate claim.
How the amount is worked out
Total cost multiplied by a substantiated business-use percentage.
Records the ATO expects
- Bills
- Business-use diary or calculation
Where this rule comes from
Primary source: ATO business income and deductions (Updated 1 June 2023). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.