In the 2020-21 Budget, the Government announced that it would consult on allowing individuals to deduct education and training expenses they incur, where the expense is not related to their current employment. Individuals can currently deduct education or training expenses they incur that are sufficiently related to their current employment, reflecting the general principle in the income tax law that allows deductions for expenses incurred in the course of earning assessable income.
This discussion paper seeks stakeholder views on whether tax arrangements should play a greater role in encouraging Australians to retrain and reskill to support their future employment and career and, if so, how this would best be achieved. The potential changes outlined in this paper have not received Government approval and are not yet law. As a consequence, this paper is merely a guide as to how any potential changes might operate.
You can submit responses to this consultation up until 22 January 2021. Interested parties are invited to comment on this consultation.
While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.
All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment.
Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.
View our submission guidelines for further information.
How To Respond
Address written submissions to:
Individuals Tax Unit
Individuals and Indirect Tax Division
Phone: Individuals Tax Unit +61 2 6263 2111