The Federal Government have set a $2,000 cap on how much people can claim on work related expenses for education. Treasurer Wayne Swan has stated that he is concerned that hitherto such deductions were unlimited and that some expenses claimed were unreasonable, including first class airfares, five star hotel accommodation and ‘expensive’ courses. Such a move will clearly impact on workers seeking to upgrade their skills by obtaining an MBA or other specialist master qualification. Why does the Government seek to punish those wishing to invest in their careers? Why not police those who abuse the system? Why not set a limit based on market prices? Tax deductability is often an important consideration for those undertaking part-time study. Am I too synical to think that this has more to do with the fact that the Government is being punished in the opinion polls for having previously promised a budget surplus and is now delivering a budget deficit whilst still promising a massive injection into school funding by, in part, penalising universities by this and other measures? The budget did provide a boost to infrastrcuture and nation-building projects but they do need appear interested in developing the skills and expertise of the Australian workforce.
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