The Australian Institute of Building (AIB) today joined a chorus of professional membership and industry bodies in welcoming the Federal Government’s deferral of the proposal to cap the tax deductibility of self-education expenses at $2000 until July 2015.
The AIB is continuing to urge all political parties to scrap the cap altogether and consult with professional groups to develop an evidenced-based policy on this issue.
“We are pleased with this announcement, and hope that the Federal Government engages in proper consultation on this issue prior to July 2015”, said Mr Robert Hunt, AIB General Manager.
“Capping the tax deductibility of self-education expenses at $2000 would have had a significant impact on participation in professional postgraduate courses in building and construction. This would have reduced the supply of skills to construction companies in Australia, which would have affected all areas of their businesses.”
“We note that Universities Australia state that the reforms would have reduced national productivity by $6 billion per annum and tax revenues by up to $1.5 billion per year.”
“As the property and construction sector is responsible for 11.5% of Australia’s GDP, this proposal would have not only negatively affected our members, but had a disproportionate negative impact on Australia’s economy and productivity.”
Consult Australia CEO, Megan Motto is pleased the Government listened to industry concerns that an education cap would lead to a dumbing-down of the Australian workforce.
She advised that in the future the Government should consult with business before making large and hasty decisions.
“The deferral announced today is welcome, though opening up channels of communication earlier would have been simpler and more efficient,” said Ms Motto
“Consult Australia looks forward to genuine consultation on this and all issues into the future.”
