Tax Cap to Hit Post-Grad Numbers and Productivity

Modelling by Universities Australia (UA) suggests that postgraduate full fee student numbers could drop by up to 30 per cent in just four years and Australia's national productivity could fall by at least $2.8 billion annually if the Government goes ahead with its proposal to tax education.

The drop of around 30,000 students would decrease tax revenue by at least $840 million per year as productivity falls, according to the peak body's submission on the Government's proposal to cap self-education expenses at $2,000 p.a.  The UA media release suggests that the effective cost of enrolling in postgraduate fee paying courses will increase by between 30 and 54 per cent. 

The UA submission to Treasury on this reform is another from a member of the 'Scrap the Cap' coalition.