Insurance educators have welcomed the Federal Government’s decision to scrap a $2000 annual cap on tax-deductible self-education expenses.

The Coalition says 80% of claims above $2000 are from people earning less than $80,000 a year and there is “no credible evidence of substantial abuse”.

National Insurance Brokers Association (NIBA) CEO Dallas Booth says it is “wonderful news”.

“It would have been a strong disincentive to do the NIBA College diploma and other forms of education and training across the industry,” he told insuranceNEWS.com.au.

“This was widely opposed by many organisations, including NIBA.

“It was said there were certain groups taking skiing holidays to Aspen, attending a couple of sessions and calling it self-education. But first-class air tickets overseas and similar things could have been disallowed without attacking education.”

Australian and New Zealand Institute of Insurance and Finance CEO Prue Willsford says the impact on her group would have been limited because most students are funded by their employers.

“That said, as a significant provider of specialist foundational education and ongoing professional development training, [we are] extremely pleased the Government has reversed its decision to drop the cap on higher education expenses.

“Productivity, innovation and creativity within our workforce are all underpinned by lifelong learning.”