Cap on self-education expenses axed

The proposed $2000 cap on the amount people can deduct as self-education expenses has been ditched by the Federal Coalition Government.

The Treasurer, Mr Hockey, made the announcement when detailing a package of taxation measures which he claims “will provide certainty to business and significantly reduce red tape and associated costs”.

Dealing with a backlog of 92 announced but unlegislated tax and superannuation measures, Mr Hockey said that the Government would proceed with 19 initiatives with a further three being significantly amended.

The Government will not proceed with the self-education expenses cap of $2000, meaning that expenses will continue to be deductible according to normal rules. (ADA, and many other associations, had actively campaigned against the cap.)

Nor will the Government proceed with Labor’s announcement which would have taxed people’s superannuation pension earnings above $100,000 in the draw-down phase.