Scrapping tax deduction cap welcomed

National Seniors has welcomed the scrapping of the $2,000 a year cap on tax deductions for professional education.

The cap was announced by Labor in the May Budget to save an estimated $266 million but Treasurer Joe Hockey said the policy was “flawed” and would be axed.

Michael O’Neill said the cap had been a barrier to older workers, many on low incomes.

“People over 50 who are trying to educate themselves and get a job or to further their professional education will be relieved the cap is scrapped,” O’Neill said.

“National Seniors condemned the cap as short sighted when it was announced.

“Older workers don’t need barriers to employment and retraining.

“If they are forced into early retirement because they cannot afford to keep their skills current, their experience and capacity to mentor younger workers will be lost along with the productivity they would have generated if they had still been employed.”

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