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• Cap on work-related education expense deductions must be reversed

Cap on work-related education expense deductions must be reversed

Associations Forum and its members have called on the Treasurer to reverse the government’s decision to impose a cap on self-education expenses. 

At a meeting in Canberra this week, Associations Forum represented its 460 member organisations along side 20 peak professional bodies in opposition to the cap.

Following the meeting, Associations Forum sent a submission to the Treasury outlining why the cap should be reversed, based on feedback from members.

“There is unity among Australia’s professional and business groups that the cap is bad policy and should be opposed outright,” said Associations Forum’s General Manager, John Peacock.

“It is a short-sighted measure and bad tax policy that fails to take account of the long-term national economic and productivity consequences,” said Peacock.

A key concern among Associations Forum members is that the policy will create a tax on learning, innovation, aspiration and continuing professional development (CPD).

“Associations Forum members have reported reduced numbers at their educational events due to fewer members being able to obtain employer funding. The percentage of self-funded delegates is slowly increasing, and a cap on self-education expenses will exacerbate this trend,” said Peacock.

“If implemented, the measure will place new financial burdens on professionals who are working for the public good. At its worst, the cap could act as a disincentive to professionals to maintain high levels of professional knowledge and skills,” said Peacock.

Professional bodies have also highlighted the fact that regional Australia will be particularly disadvantaged because of the higher costs involved in further study and professional development.

A national campaign called #ScrapTheCap has been launched. Associations Forum is a supporter of ScrapTheCap and encourages members to sign the petition against the $2000 cap. So far, over 10,000 people have signed it. Visit www.scrapthecap.com.au to have your say.

To read the full submission by Associations Forum, click here.

Image: Peak professional bodies gather in Canberra this week to determine the next steps in opposing the cap. Source: Universities Australia.