Thread: limit of $2000 for business expenses?

Originally Posted by weakestlink

Nice Doctor I know is spending a lot studying his specialty in Holland. When he comes back to Australia we will have one of the best trained Cardiologist who has studied here, the US and now participating in cutting edge research in Holland. Our current government would limit his legitimate business expenses to $2000. Most Doctor do hundreds or thousands of unpaid hour studying to improve their medical knowledge to help treat you, our friends and our families.

The Limit is really asking your doctors not to study further?

Sign the #ScrapTheCap Petition | Scrap the Cap

Why is the petition just for doctors!!!

The proposed changes are for training and education expenses only, not business expenses. A lot of other professions are also up in arms about it as well, besides the doctors.

http://www.ato.gov.au/taxprofessionals/content.aspx'doc=/content/00351802.htm

$2k doesn't get you much in training especially if you have to travel to the course or conference. Plus not all of us are blessed with employers who will pay for you to attend. It all seems a bit short sighted and will hit the self employed hardest.

Steve

I signed the petition to remove the $2000 cap not just for Doctors. Business expenses are business expenses. I fully agree the whole thing needs to be put in the bin.

Start a petition for yourself. I will happily sign it as well

http://www.change.org/start-a-petiti...petition_exact

The new laws will hit university income much harder than they hit doctors. No more tax deducting MBAs and other masters programs. Any decent masters costs $10k+ per semester ($20k+ pa). MBAs are more.

Doctors get off the lightest! They get to earn (well) while they are doing their specialisation (and have little/no direct fees) and their meal allowances / mealcard system is untouched, so I guess they will just rort that harder than they already do to compensate

I am guessing this will be the first law to be repealed once the government changes at the next election.

dig around a little guys.....

If I understand this proposal correctly this cap applies to the commonly rorted (and not necessarily spent on) "self-education" costs that professionals of all kinds (lawyers, accountants, valuers, geologists etc etc) use as just another customary and unsupported "business expense" - somewhat like a standard dry-cleaning allowance that your accountant applies.

ie. a deduction that has been abused - don't blame Swan - this would have been the ATO's advice to any government.

I do not see that it even applies to many of those other business expense tax deduction rorts like international conferences at high class resort locations.

There are heaps of other dodgy deduction practices that even wage-earners engage in (eg. work travel and car cost when they don't use the car for work).

The ATO is often well behind.

and yes - I agree with weakestlink - any online petition is not worth the paper it isn't written on :-)

Originally Posted by 87County

dig around a little guys.....

...
I do not see that it even applies to many of those other business expense tax deduction rorts like international conferences at high class resort locations.

Heaps of other dodgy deduction practices that even wage-earners engage in (eg. work travel and car cost when they don't use the car for work).

The ATO is often well behind.

and yes - I agree with weakestlink - any online petition is not worth the paper it isn't written on :-)

Police laws, prosecute rorts could and should be done. The ATO needs to get of its butt and audit not simply allow dodgy deductions by tax cheats impacting on legitimate tax deductions!

Stopping "legitimate" Self Education expenses above $2K is the issue. More education more earnings = more tax contributions

Online petitions are a small measure of the communities feelings and only a really stupid company or political person can ignore that leverage now.

As an IT professional I am lucky enough to have had employers throughout my career that cover most of my education expenses. Over the last 10 years I have generally had about a month's training a year. Adding that cost up a weeks training is typically about $5k for the course plus another $2k in travel and accomodation. While this is not the same in all industries this is the price that you pay to keep current with latest technology and deliver a modern product in a competent manner to the customer. If I was a contractor and I couldnt claim the expenses I would have to do that training and research online in my own time and lose earning capacity while I educated myself in a less efficient manner because I could not claim the legitimate training expenses for educating myself.
In short it is a stupid policy and the ATO should audit properly if they feel they are getting rorted.
As for the Argument about holidays at expensive resorts, last year I went to VMworld in San Francisco. There were 20,000 participants at that conference, how would you hold it in anything other than a wold class convention centre?

Regards,
tote

OK but what about genuine deductions? It is easy to go well over $2k for self education expenses. One course for me can cost more than this. I am lucky my employer will reimburse for any relevant courses or pay for up front.
But there are professional development courses that dont directly reflect my current role that I pay for such as my OHS Diploma. I think all deductions should be allowed but should be substantiated. Not sure travel and accommodation are legitimate deductions though. This is often where the rorting occurs.