Can Small Business Owners Claim Home Internet? (Australia Guide)

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Who this page is for: Australian sole traders and small business owners who run part of the business from home.

Last reviewed: 2 April 2026

Short answer

Home internet may be relevant where it is genuinely used for business, but only the business-use share is usually the starting point. The records and the way you work out the percentage still matter.

  • You usually need to have paid the cost yourself.
  • The expense should relate directly to earning income or running the business.
  • Only the work-related or business-use share is usually claimable for mixed-use items.
  • Records matter just as much as the expense itself.

When home internet may be relevant

  • You use the connection for bookings, customer communication, cloud software, online payments or other business admin.
  • The business is genuinely run partly from home or the home internet supports the business in a real way.
  • You can explain how you worked out the business-use share instead of claiming the whole bill automatically.

Related live page: How to Claim Tax Deductions in Australia (2026 Guide).

When the claim usually gets weaker

  • The internet is mostly private and there is no supportable business-use split.
  • Another party or business structure actually paid the bill and you did not incur the expense yourself.
  • The page drifts into broader home-office or occupancy issues without the right records or setup.

Records to keep

  • Keep internet bills or account records for the period claimed.
  • Keep notes showing how you worked out the business-use share, such as an itemised account or a reasonable pattern-of-use method.
  • Keep any records that explain the home-based business setup if the claim depends on it.
  • If GST applies, keep the records needed to work out the correct deduction amount.

Related live page: Record Keeping for Tax Deductions in Australia (2026 Guide).

Common mistakes

  • Claiming the full home internet bill without any apportionment method.
  • Mixing up home-based business deductions with generic working-from-home employee rules.
  • Ignoring who actually paid the cost.
  • Trying to support a mixed-use claim with no contemporaneous records.

Frequently asked questions

Can a small business owner claim all of the home internet bill?

Usually the safer starting point is the business-use share, not the full bill, unless the facts clearly support a different outcome.

How can a small business owner work out the business-use percentage?

The current ATO guidance points toward supportable methods such as itemised accounts or a reasonable pattern of use rather than guesswork.

What if the business is run from home only part of the time?

The connection may still be relevant, but the claim should stay tied to the actual business use and the records behind it.

Related guides

Use these next if you want the parent hub, a related spoke or a broader rules page.

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Review note, sources and disclaimer

Reviewed by: Australia Tax Deductions editorial team

Last reviewed: 25 March 2026

How this page is framed: This page is written in plain English, anchored to official ATO guidance and designed as educational information only.

Methodology: See the Editorial Policy and Review Methodology pages for how the site handles source checking and updates.

Primary references

General educational information only. Tax outcomes depend on your circumstances, records, business structure and the current ATO rules. Check the latest official guidance or speak with a registered tax professional before acting on any deduction claim.