Proposed $2000 cap on self education expenses

C

china

http://www.ato.gov.au/taxprofessionals/content.aspx?doc=/content/00351802.htm

What do you think about the new cap that will be placed on tax deductions for self education?

$2000 does not cover the air ticket to the American/ European conference. Nor the conference registration nor the accommodation.

So does that mean we can no longer educate ourselves at proper conferences but must settle for bangers and mash at Blacktown RSL for our trade conferences?

How do we counter this new curb on tax deductions and the government's blatant grab for cash.
 
I think it is specifically designed to attack self employed professionals - doctors, lawyers, accountants who often claim high levels of education expenses. e.g.

1 week Conference in Washington DC

return business class airfares 7k
conference registration 3k
accommodation 2k

total of 12k and thats for one conference only - some people go to three conferences a year.

would you really want a doctor not to go to top international conferences to update their knowledge?
 
What do I think? Shocking
Especially now we have increasing CPD requirements for health care workers the last few years
Especially bad for Workers who live in regional and rural areas. It can be hard to meet your requirements and keep your qualifications and knowledge at a high standard and not spend more than $2000.
 
my guess is that it will last afew months before a court case sorts it out.

"Reasonable" costs of being able to CONTINUE to earn the income that the income tax is being generated from is sensible.

Anything less is like killing off the goose that laid the golden egg................but wait.............oh never mind, we have done that topic to death.


ta
rolf
 
The real issue is what we can do about it.

I am concerned that this is just the start of a cap on the deductibility of other business expenses.

Another death blow to running a small business in Australia as most self-employed people are.
 
From what I have heard employers will still be able to claim normal education expenses with no cap. Getting your employer to send you on courses may be enough...
 
china said:
Who will be initiating the court case and more importantly, who funds the court case?
Click to expand...

you and me....... if we can be bothered.

by "definition" if you fall into the PSI rules the gov says you arent "in business" .......... problem is a medico with a big practice has more unrelated clients than me, but the gov feels they are an easy mark. I suppose with their 2 mill plus income :) they wont mind.

I posted this yesterday in another thread, and yet again I think its apt

http://www.jimrohn.com/index.php?main_page=page&id=1245

our system isnt perfect.........but still works well mostly.

ta
rolf
 
as an aside, anyone have any figures on what the "cash" economy might be worth on forgone GST and related income taxes might be worth ?

ta
rof
 
For a doctor earning $30k a day, a 12k trip to a conference is only a few hours work. A drop in ocean really which I am sure they can afford.
 
Doctor friend must attend a conference minimum once a year. I do know he does a LOT of sightseeing instead of being in the room where he should be :D.

These days with internet and teleconferencing, why do doctors have to fly to exotic locations anyway?
 
DaveM said:
For a doctor earning $30k a day, a 12k trip to a conference is only a few hours work. A drop in ocean really which I am sure they can afford.
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Whilst $30k a day may be what a doctor (surgeon) can charge, I suspect it's a lot less after you look at all the other expenses. Many people don't truly appreciate what it actually costs to run a business.
 
wylie said:
Doctor friend must attend a conference minimum once a year. I do know he does a LOT of sightseeing instead of being in the room where he should be :D.

These days with internet and teleconferencing, why do doctors have to fly to exotic locations anyway?
Click to expand...

Same with brokers. My aggregator's conference was in Hawaii. I didn't go because I think it's a waste of time/money but some people enjoy the junket as a way to take a holiday coupled with CPD points.
 
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