On Friday, the government announced that it was postponing the introduction of the proposed $2000 per annum cap on tax deductions for work-related education expenses until 2015. The Institute has aligned with Scrap the Cap, an alliance of over 70 organisations covering a broad range of industry and professional organisations, and will continue to lobby against its introduction.
We want to hear about your experiences and expectations regarding self education. Please take a few minutes to fill out this survey.
The proposal to cap the deduction for work related education expenses was announced in April by the former federal Treasurer, the Hon Wayne Swan, MP with the cap set to be introduced from 1 July 2014.
The former Treasurer’s media release announcing the changes stated that ‘ … under current arrangements work related self education expenses are unlimited and provide an opportunity for people to enjoy significant private benefits at taxpayers’ expense … it’s possible to make large claims for expenses such as first class airfares, five star accommodation and expensive courses’.
While the Institute supports sensible measures to address any ‘rorts’ under the current system we think the proposed cap is too blunt and doesn’t take into account the ‘public good’ derived from an individual’s investment (time and cost) in furthering their knowledge and skills in their chosen field. We think the cap will impact on the professional development of architects and in turn, potentially impact the future quality of our built environment.
The Institute has written to the federal government and the opposition, issued a media release and made a submission to the government’s consultation paper, where we have outlined our concerns about the proposed cap. We argued that it is imperative Australia continues to produce highly skilled, technically innovative architecture professionals that are internationally competitive, ensuring Australia’s contribution to the global economic and creative economies, and environmental sustainability. We pointed out that architectural practice, theory and research are continually evolving to meet the challenges posed by societal and climate changes. Changes in technology, infrastructure, materials, and the rise in innovation, mean an architect by necessity must be multidisciplinary in both skills and scope. For example, architects undertake post professional study related to the practice of architecture including; urban design, sustainable development, urban policy and strategy, construction management, design innovation and environmental science.
We also pointed out that Australia has a rigorous system for accreditation of architects, incorporating (in most state jurisdictions) minimum continuing professional development requirements in order to retain registration as an architect. And in recognition of the importance of continuing education, the Institute has also introduced a new category of membership called A+, which requires a commitment to a minimum annual level of professional development be undertaken by all A+ members.
We also highlighted that we are particularly concerned about the impact of these reforms on sole practitioners, small to medium practices, and practices located in rural areas where travel costs to access conferences etc are typically high.
The proposed cap on work-related self education reforms would also appear to be at odds with other federal government policy encouraging education, innovation and a ‘smart economy’, and positioning Australia within the Asian century.
Recently alliance representatives, including the Institute’s CEO, David Parken have met with advisers to the current federal Treasurer the Hon Chris Bowen, MP (who made the announcement on Friday) and with the Federal Shadow Minister for Education the Hon Christopher Pyne, MP. In addition Mr Parken has also met with the Shadow Minister for Universities and Research, Senator Brett Mason. Unfortunately to date there has been no indication that either the federal government or opposition will overturn the proposed cap.
The alliance’s advocacy activity is ramping up and to assist the Institute in shaping its message and to best represent the architectural profession about the impact the cap will have, we encourage members to complete the short survey we have prepared.
We will keep you informed as this issue progresses and we encourage members to visit the Scrap the Cap website where you can sign a petition and add your story. The website also includes information about writing to your local federal member of parliament on this issue.
You can read the Institute’s submission against the proposed cap here and read more about the proposed cap on the Treasury website.