The Green Building Council of Australia (GBCA) and The Australian Institute of Building (AIB) have joined the chorus of industry groups calling on the Australian Government to reconsider the proposed $2,000 cap on tax deductions for self- education.
Expenses incurred by people undertaking short courses and professional training to further their careers or gain new skills has traditionally been covered by tax deductions. However, a Gillard Government proposal sought to limit claimable self-education expenses to $2,000 per person, per year.
“An innovative, competitive property and construction industry relies on a workforce that is committed to ongoing learning, development and training,” said the GBCA’s Chief Operating Officer, Robin Mellon.
“Any measure that makes it costlier or harder for people to invest in their skills and expertise will undermine the productivity and competitiveness of Australia’s workforce.
“We join other industry groups in calling for the Australian Government to ‘scrap the cap’.”
The AIB also has grave concerns about the proposal, which they say has been announced without any widespread consultation with key stakeholders and the community.
“Capping the tax deductibility of self-education expenses at $2000 will have a significant impact on participation in professional postgraduate courses in building and construction,” said Mr Robert Whittaker, AIB National President.
“This will reduce the supply of skills to construction companies in Australia, which will affect many areas of their businesses, such as their bottom line, safety, quality, environmental performance, and workplace relations, to name a few.”
“The Government’s proposal will restrict continuing professional development, one of the cornerstones of professional practice, and will undermine the tradition of ‘lifelong learning’.”
“Further, as the changes will be applied retrospectively to current students, this will impose costs unexpected when they commenced their courses, and possibly prolonging or disrupting their studies,” added Mr Whittaker.
The GBCA worried that a tax on learning would also hinder the adoption of green skills across Australia’s property and construction industry.
“People from professional services to trades recognise that sustainability principles and green skills must be integrated into industry at every level,” Mr Mellon explained.
“A broad-based cap on self-education would act as a disincentive for people seeking the training and development they need to continue to keep Australia at the forefront of sustainable development.”
“If Australia is to maintain its world-leading capabilities in sustainable building, the Australian Government must encourage ongoing learning rather than looking for short-term opportunities to save cash at the expense of education,” concluded Mr Mellon.
