Cap on Tax Deductions for Work‐Related Self‐Education Expenses

The Australian Society of Association Executives (AuSAE) is currently seeking feedback on the Government’s plan to implement a $2,000 cap on work related education expense deductions from 1 July 2014. 

AuSAE claim that this cap could have many negative impacts, including

• Adversely impacting the sustainability of Australia’s not‐for‐profit sector–​ With many courses, conferences and seminars costing more than $2000 a year there will be a drop off in the number of attendees. This will have a serious impact on the profitability of these events and therefore the sustainability of the not‐for‐profit​ organisations that run then.
• Increasing calls from the not‐for‐profit sector for financial support from government – Removing one of the main revenue generators for not‐for‐profit sector will impact on their sustainability. This is highly likely to increase the number of not‐for‐profit organisations calling on financial support from the government.
• Leading to a decline in overall skill levels of Australian employees– Current economic times call for employees at all levels to maintain a high level of expertise and skill that can only be obtained through ongoing professional development. Whether massage therapists, builders or managers, the ability to provide a quality service can only be achieved through ongoing professional activities.
• Adversely affecting the young and those just starting in careers – Formal professional development pathways are most keenly sought by the young and those just starting in their careers. By limiting access to professional development opportunities for this vulnerable and financially less well‐off group it will create a situation where those who can least afford it are being adversely affected.
• Adversely affecting the competitiveness of Australian workers in the global marketplace– The short term financial gains to the government budget will have long term adverse effects on the Australian economy.​ Without skilled managers and leaders the Australian economy itself will suffer. Capping the deductibility of​ self‐education expenses will stop short term efficiency gains in the workplace, inhibit the building of skills in this highly competitive part of the world and block our ability to manage the compliance and regulatory maze​ still faced by many Australian businesses.

AuSAE is requesting that those affected by the proposed changes read the proposed policy, and submit their views. Submissions close July 12, 2013.

Comments on this article

• Geoff Trotter of Perth Posted at 5th Jul 13 12:32 PM

  Terrible policy. There needs to be more incentive to improve education - not less.
  This and the proposed removal of the discount for paying fees upfront will effect my decsions about studying further.

• Eddie Janssen of Batemans Bay Posted at 8th Jul 13 9:28 AM

  $2000 would not cover one attendance at a conference / seminar.
  I only stay in accommodation of 3 star or less to save costs

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