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$2000 cap on self-funded expenses scrapped

Wed, 06 Nov 2013

Thanks to the advocacy by ABDC and other peak body and industry groups, on 6 November, the Coalition Government announced it would be scrapping the proposed $2,000 cap on tax deductions for self-funded education expenses

In ABDC’s submission, we proposed that university tuition fees be exempt from the proposed legislation, which if implemented could see significant increases in course costs.  Using the MBA example included in the consultation paper, ABDC demonstrated how capping could lead to an effective annual increase in course costs by approximately 44 per cent.  We also argued that any legislation needs to encourage national productivity by 1) offering a level playing field between big business and self-employed individuals or SMEs and 2) increasing human capital, skills and knowledge, irrespective of whether it happens in firms or individuals.  Universities Australia estimates the effect to national productivity would be $6 billion per year and up to $1.5 million in tax revenue.

Proposed Policy on Capping Tax Deductions for Self Education Expenses - April 2013


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