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Allow graduates to amortize their human capital investments: business v worker parity

April 4, 2015 Phillip Wong

Graduation day should also be depreciation day. Now that's a cause for celebration.

The cost of education for work should be no different to a business that purchases depreciating plant. 
I propose that university graduates should be allowed to depreciate or amortize the cost base of their education over some given statutory life - provided that they work in a field that is "sufficiently connected"

Sufficient connection would be defined as the same criteria in the regular s.8-1 ITAA97 general deduction provisions. As in, you would get a deduction if you are working in the field that you are studying. This simply seek to solve the timing miss-match but yet provide an equitable outcome. 

It's not fair that wage earners in knowledge jobs are making the economy's biggest investment in depreciating productive assets (in the form of human capital) and get non of the tax breaks available to capital earners (ie: shareholders). 


How about a 50% investment allowance on my HECS bill Ms Gillard!

← Why I doubt my economics training

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