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Government earns dunce’s cap with tax hike on learning

Publication date: 11 Jul 13 | Source: THE TAX INSTITUTE

Thursday 11 July 2013: The Government’s decision to limit self-education expense deductions is bad policy that will have unintended consequences for people seeking to claim entirely legitimate and reasonable self-education expenses, The Tax Institute said today.

“The Government is effectively increasing the tax bill for people who legitimately claim self-education expenses worth more than $2,000 per year,” said Tax Institute Senior Tax Counsel, Robert Jeremenko.

“It is deeply concerning that the Government is using such a blunt policy instrument, which will capture and limit all claims for self-education expenses, regardless of their nature.” 

“An educated workforce should be one of the key objectives of Government, but this measure is a significant disincentive, providing a financial penalty to those seeking to self-fund their education.” 

“Sole traders are at particular risk of unfair treatment with the imposition of a cap on self-education expenses that are necessarily incurred in the course of their business,” Mr Jeremenko said.

“The Government should look at suitable alternatives such as tightening the Tax Office’s administration of the existing law and, if warranted, perhaps considering a carefully designed, targeted legislative response.”

The Tax Institute today also confirmed that it is one of the broad range of peak professional bodies that have joined together to call on the Government to abandon the proposal.



  • Robert Jeremenko, Senior Tax Counsel, 0468 987 300