There are some big changes coming for those who intend to undertake courses or formal training as part of their job. The government announced some big moves in the most recent Budget.
The changes to work-related education expenses
- Deductions for work-related education expenses will soon be capped at $2,000. This will be put in effect from July 1, 2014. The measure is aimed at saving the government $514.3 million over the forward estimates.
- There will also be a lower limit on tax deductibility for self-education courses. This measure will save the government a cool $500 million.
- Also, currently employers are not liable for fringe benefits tax for education and training they provide to their employees – this treatment will be retained, unless an employee salary sacrifices to obtain these benefits.