As part of an economic statement released on 2 August, the Australian Government has announced the deferral until 2015 of the introduction of a cap of $2000 pa on the tax deductibility of self-education expenses . The tertiary education and training sector has been at the forefront of opposition to the cap, with Universities Australia having recently organised an “alliance” against the cap.
The move has been welcomed by the sector.
Belinda Robinson, chief executive of Universities Australia, says the twelve month deferral represents a temporary but significant reprieve for the hundreds of thousands of people who choose or are required to invest in their own education and professional development.
If implemented the measure would have increased the effective cost of post-graduate fee paying courses by an estimated 30 – 54% resulting in a decline in post-graduate and professional development programs by an estimated one third.
Barney Glover, vice-chancellor of Charles Darwin University and chair of the Innovative Research Universities network, says the deferral allows the 
sector time to ensure legitimate self-education expenses, including all course fees, remain tax deductible while removing scope to claim excessive travel and accommodation costs to the extent that this is currently permitted.
Governments should encourage Australians to further their education. The self-education deduction is one element in doing so. To cap it sends the wrong message.
The Australian Technology Network of Universities (ATN) says the deferral is “acknowledgement of the need to reconsider the consequences of a cap to national productivity and maintaining a highly skilled workforce.” ATN Executive Director Vicki Thomson said the deferral will provide more certainty for the university sector, but more importantly it will delay a significant deterrent for our skilled workers- including engineers, managers and health professionals- from maintaining or improving their professional skills and knowledge.