11/09/2025
iPhone 17 Pro Max Launch:
What Employers and Employees Need to Know About Work-Related Phone Expenses
With the release of the iPhone 17 Pro Max, many individuals are considering whether a new device or monthly phone plan can be treated as a work-related expense. The rules, however, are specific. To ensure compliance, expenses should be assessed in three key areas:
1️⃣ The Device: Outright Purchase vs. Contract Plan
Outright Purchase
• If the cost exceeds the threshold, the phone must be depreciated.
• This means the expense is spread over several years rather than being claimed in full at once.
Contract Plan (Installments)
• Only the principal portion of each payment may be included, not the entire monthly bill.
• Usage charges such as calls and data must be separated from handset costs.
2️⃣ Monthly Bills: Apportioning Work vs. Personal Use
As most phones are used for both personal and professional purposes, costs must be apportioned:
• For example, if 70% of usage is work-related and 30% personal, only 70% can be allocated.
• Evidence is essential — call logs, statements, or work records should be retained to substantiate the allocation.
3️⃣ Compliance Requirements: Record-Keeping
The Australian Taxation Office (ATO) requires that work-related phone expenses be supported by:
• A 12-week usage diary or logbook to establish work/personal ratios.
• Supporting documentation, including invoices, contracts, and monthly statements.
• Consistency in methodology — once an approach is selected, it should be applied consistently across reporting periods.
📌 Key Takeaways
• Phone purchases must be treated correctly: either depreciated or apportioned under a contract.
• Monthly bills should be allocated between work and personal use on a reasonable basis.
• Accurate records are critical to meeting ATO compliance requirements.
By following these principles, your new iPhone 17 Pro Max can be properly recognised as part of your professional toolkit.
