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Reform to deductions for education expenses

31 May 2013 | Discussion Paper

On 13 April 2013 the Government announced reforms to better target education expense deductions as part of a package of measures that will support the National Plan for School Improvement.

To help deliver these reforms and ensure that they are sustainable, a $2,000 cap on work‑related education expense deductions will be introduced from 1 July 2014. When this measure was announced, the Government made it clear that it would consult. Part of this consultation process is the release of a discussion paper.

The discussion paper Reform to deductions for education expenses examines the current treatment of education expenses including what qualifies as an education expense, and works through a range of issues related to this cap, such as the effect of the cap on the depreciation of capital assets relating to education, the current $250 no‑claim threshold and personal services income. The proposed changes in the income tax legislation and fringe benefits tax legislation are also outlined.

The Government welcomes views on this discussion paper, and written submissions will be accepted until 12 July 2013.

Submissions closed on Friday 12 July 2013

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