University of Melbourne Vice-Chancellor Professor Glyn Davis has welcomed today’s announcement that the Federal government will reverse the cap the previous government had placed on the tax deductibility of self-education expenses.
 
The previous Labor Government had announced they would limit the amount people could seek tax deductions for on education-related expenses to $2000.

The cap formed part of the then government’s $2.8 billion worth of cuts to the higher education sector.
 
Professor Davis said the announcement today was excellent news for the sector.
 
“If Australia truly wants to portray itself as a clever country we should be encouraging, not discouraging, people to continue their higher education,” he said.
 
“Analysis by Universities Australia showed that if implemented the caps would have resulted in a 30-54% increase in the effective cost of post graduate education, leading to a 30% drop in student numbers, $2.8 billion per annum in lost production and $800 million in lost tax revenue.
 
“This would have had a terrible impact on the higher education sector which is crucial to Australia’s economy.