With a new prime minister installed by Labor, there is now an opportunity to revisit the “short sighted” measure from the May Budget, according to the Institute of Public Accountants (IPA).
IPA chief executive Andrew Conway said the Institute particularly objected to the decision to cap the deductibility of self-education expenses at $2,000.
“The IPA is very concerned over the government’s intention to restrict investment in ongoing education and upgrading of one’s skills,” IPA chief executive Andrew Conway said.
“There is also a need for some of our members to update their qualifications to meet ongoing eligibility requirements for the new Australian Financial Services Licence limited licensing regime or the commercial law requirement for tax agent registration.”
There is a separate concern as to whether conference expenses will be included as part of self-education, and therefore subject to the draconian cap of $2,000, he added.
“Current law allows conference expenses to be deducted under the general deductibility rules rather than the proposed self-education regime, which already excludes the first $250 of expenditure,” he said.
“Furthermore, as the mobility of professionals increases within Asia, our young people are having to compete with their counterparts from China in staggering numbers. It is reported that China is producing more than 20 million university graduates every year.
“We are calling on the government to rethink this policy decision and let common sense prevail,” he added.
