The Australian Institute of Building (AIB) today joined the 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, but urged 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 tax 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.”
“This was an ill-conceived penalty on education and on highly-productive individuals who drive the economy forward.”
The Government’s proposal would have restricted continuing professional development, one of the cornerstones of professional practice, and would have undermined the tradition of ‘lifelong learning’.”
“We look forward to working with the next Federal Government to arrive at a fair and well-thought out policy on this issue”, Mr Hunt added.
For further information, please contact: –
Mr Robert Hunt – AIB General Manager
Mobile 0412 117 799 Email: email@example.com