Federal Treasurer Chris Bowen’s announcement of the deferral of the reforms to self-education expense deductions until 2015 has been well-received by a raft of industry bodies, including the Australian Institute of Architects (AIA).

The federal government announced in the lead-up before the 2013-14 Federal Budget that from 1 July 2014, deductions for work-related self-education expenses – such as study for formal qualifications, tuition fees and textbooks – would be capped at an annual amount of $2000 per person. There was previously no limit to claiming such expenses.

The AIA believes that the deferral is the first step by the government to resolve the policy originally proposed by former Deputy Prime Minister and Treasurer, Wayne Swan.

“A 12 month deferral is a good first step by the government and will provide those opposing the cap additional time to develop accurate data on the negative effects of the policy,” says Institute CEO David Parken.

“This cap will hurt many sectors of the economy through loss of productivity and many professionals will no longer be able to afford to keep their skills up to date. We believe economic modelling that is currently underway will reveal the devastating impact this policy could have.”

As an independent professional representative body for approximately 12,000 members nationally, the AIA recognises the negative impacts the proposed reforms will have on the professional development of the architecture industry, and in turn the future quality of the built environment.

While it supports sensible measures to address any ‘rorts’ under the current system, the Institute thinks the proposed cap is too blunt, neglecting the ‘public good’ that might be derived from an individual’s investment (time and cost) in furthering their knowledge and skills in their chosen field.

In a statement released last Friday (2 August), the AIA says that “it is imperative Australia continues to produce highly skilled, technically innovative architecture professionals that are internationally competitive, ensuring Australia’s contribution to the global economic and creative economies, and environmental sustainability”.

Because of the continual evolution of architectural practice, theory and research, like “changes in technology, infrastructure, materials and the rise in innovation”, architects must be “multidisciplinary in both skills and scope” to meet the challenges posed by these societal and climate changes.

The AIA also points out that Australia has a rigorous system for accreditation of architects, incorporating (in most state jurisdictions) minimum continuing professional development requirements in order to retain registration as an architect.

Concerns were also raised about the effects these reforms have on sole practitioners, small to medium practices, and practices located in rural areas where travel costs to access conferences are typically high. Typical costs for built environment-related conferences are in the range of $1500, excluding associated travel and accommodation, costs which increase greatly for rural and regional practitioners.

Scrap the Cap, an alliance comprising over 70 professional and industry organisations including the AIA, was formed in opposition to the proposal and has since been proactive in its advocacy, meeting with government ministers and advisors in efforts to reverse the caps implementation.

‘The Institute remains committed to the Scrap the Cap Alliance and will continue to work with the group to coordinate our opposition to the proposed policy,” says Parken, who adds that the AIA is currently surveying its members to gather details on the real effect the policy would have on them.

Geraldine Chua

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