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Decision over taxable cap on self education has been postponed

August 2013, 05
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Government of Kevin Rudd has postponed the decision over the proposal of imposing taxable cap of about $2000 on expenses towards self education. If the decision is implemented, then it will affect about two million workers. It could have also lost $1.6 billion tax revenue and also reduce the national productivity by $6 billion. This proposed cap has been criticised by education providers, professional associates, convention centres and tourism lobbies.  

Belinda Robinson who was behind the agitation that lobbied hard for scrapping the cap said that the government ultimately listened to reason. Chief executive of peak group Universities Australia, Ms Robinson said that they will continuously press the detrimental impact of the cap on productivity. According to him, the proposed cap will increase skill shortages, takes the nation backwards in realising its ambition on education, innovation and skills.

Engineers require almost 50 hours of professional development for every year, in order to keep their professional registration. If the cap is implemented, then they will be deregistered as engineers. The engineers in regional and rural areas will be badly hit with the proposed cap. Will Milford who has spent $5000 on self education, last year, said that the cap announcement on self education will run counter to many important policies of Australian economy. Hence, he opined that the proposal has to be dropped altogether rather than postponing the decision. 

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