MORE than 20 professional bodies are demanding the federal government scrap its planned cap on tax deductions for self-education expenses, fearing it will hurt the economy.
The government announced in April that from July 2014 it will set a $2000 cap on how much people can claim on work-related expenses for education.
A communique released on Monday from 22 professional bodies, including health, law, accountancy, engineering and education groups, calls for an end to this budget measure.
Universities Australia chief executive Belinda Robinson says it will have a "debilitating effect" on the capacity for equipping Australia's workforce with the skills needed to remain competitive and build a diversified economy.
"As global economic threats continue to mount, the government should be creating incentives for workers to lift their skills and upgrade their qualifications to meet the rapidly changing needs of our labour market," she said in a separate statement.
The group says the Australian Workforce Productivity Agency has warned that industry demand for people with higher education qualifications is set to soar by between three and four per cent every year to 2025.
"The cap puts at risk the ability to fill this demand for a skilled labour force. Skill shortages do nothing to increase productivity. This measure impacts on efforts to expand the economy," their communique says.
At the same time, many professional bodies require ongoing education to ensure their members' qualifications and knowledge are up to date.
The planned cap will escalate the cost of eduction to individuals to meet these professional obligations.
"If unable to be met by the individual, it will create an unaffordable impost on small business," it says.
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