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Federal Government delays $2000 self-education salary cap

The Federal Government announced on Friday 2 August 2013 that it will defer its decision to cap deductions on self-education expenses at $2000.

The Government announcement on the deferral was in the Economic Statement, Page 34 -“The Government has decided to defer the introduction of the $2,000 cap on work related education expense deductions until 1 July 2015. This will allow for further consultation on how best to target excessive claims while ensuring the impact on university enrolments and genuine continuing professional development is minimised. This measure is expected to decrease receipts by $250 million over the forward estimates period.”

Associations Forum welcomes the Government’s move to delay the implementation of the cap but will continue to play a leading role in ensuring the cap in its present form is abolished while accepting that rorting should be eliminated.

Associations Forum has received over 50 submissions from its member organisations stating their opposition to the proposal. It is channelling these submissions to the www.scrapthecap.com.au website and related Scrap the Cap Alliance. 

On Tuesday, 30 July 2013, Associations Forum’s General Manager John Peacock attended a meeting in Canberra of over 30 associations hosted by Australian Medical Association and chaired by Belinda Robinson, CEO of Universities Australia.

Two senior staff members from the office of Federal Treasurer, Chris Bowen, were present to hear many examples of how the proposal will disadvantage the ability of individuals to improve their skills - and the damage that having less skilled professionals and others would cause to Australia.

Some key points among the attendees included:

  • Robert Jeremenko of The Tax Institute said it was clearly bad tax policy and policy on the run caused by the necessity to pay for other unfunded expenditures
  • Rod Wellington of Services for Australian Rural and Remote Allied Health (SARRAH) noted the disadvantage to the remote and rural communities
  • Lee Thomas of Australian Nursing Federation discussed how quality of care would be affected
  • Graham Catt of Australian Veterinary Association noted the likely detriment to animal welfare
  • Damian Mitsch of Australian Podiatry Council said it was the wrong direction at a time when massive health care challenges are looming
  • Robyn Hendry of Canberra Visitors Bureau noted the secondary flow on impact to the visitor economy

John Peacock of Associations Forum said it was the most significant uniting issue to arise in his 24 years in the association sector.

“Whilst it is obviously ludicrous to restrict the ability and incentive of well-known professionals to maintain the high skills that are needed to assist the community, there are many others who will cut back their educational expenditure because of this proposal,” he said.

Peacock extended his congratulations to the many members who made their views known to both Associations Forum and to the Government.

"However, the campaign is not over as this is merely a deferment of the decision to limit claims for self-education expenses," said Peacock.

For further information, contact Denys Correll, Manager Client Services, Associations Forum on 0404 504 539.

Photo: The Scrap the Cap Aliance met in Canberra on 30 July 2013. Source: Scrap the Cap.

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