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Deferred Start for Self-Education Cap a Positive Step

Publication date: 02 Aug 13 | Source: THE TAX INSTITUTE

Friday 2 August 2013: The Government has demonstrated that it is starting to listen to community concern by announcing a 12 month deferral to the start date of the proposed $2,000 cap on self-education expenses, The Tax Institute said today.

“This is a welcome first small step in the right direction in the Government’s handling of this policy measure,” said Tax Institute President Steve Westaway.

According to Mr Westaway, captured in the Federal Government’s Economic Statement released today is the decision to defer the start date of the cap to 1 July 2015 to allow for further consultation on the proposed measure.

At the same time, the Government has acknowledged the need to minimise the potential impact of this measure on genuine continuing professional development and other education needs.

“The Tax Institute has been deeply concerned for some time now by the intention of the Government to use such a blunt policy instrument to target certain perceived excessive claims since the measure was first announced in April this year,” Mr Westaway said.

“It has been especially concerning as there are potentially much more suitable alternatives, such as tightening the Tax Office’s administration of the existing law, that could be used to target the so-called excessive claims causing concern to the Government.”

“A blunt instrument like the proposed cap unfairly penalises Australians who are endeavouring to improve their qualifications for work or business who are not incurring unnecessarily excessive costs.”

“Building an educated workforce should be one of the key objectives of Government.”

“The decision announced by the Government today shows it is starting to listen to the valid concerns of the community,” he said.



  • Robert Jeremenko, Senior Tax Counsel, 0468 987 300