Trade Support Loans
Trade Support Loans are to encourage more young people to take up a trade and complete their qualification.
The Australian Government is offering loans of up to $20,808 over the life of an apprenticeship to apprentices who are undertaking a Certificate III or IV level qualification that leads to an occupational outcome on the priority list. These Loans are designed to ease financial burden and help increase apprenticeship completion rates.
Like HELP loans for tertiary students, the loans will be repayable once apprentices are earning a sustainable income.
The Trade Support Loans specifically target occupations on the Trade Support Loans Priority List such as plumbers, diesel mechanics, electricians and fitters as well as well priority areas in horticulture and agriculture with more than 100 qualifications eligible.
It provides real support for current apprentices to complete their skills training and provide a stronger incentive for young Australians to become apprentices.
To be eligible for TSL you must reside in Australia and be an Australian citizen, or the holder of a permanent visa, and be undertaking one of the following:
- a Certificate III or IV qualification that leads to an occupation on the Trade Support Loans Priority List*
- a Certificate II, III or IV in the agriculture sector
- a Certificate II, III or IV in the horticulture sector, where you’re working in a rural or regional area
If you’re a school-based and/or part-time apprentice, you are also eligible to apply, as long you meet the above eligibility criteria. Once approved, your payments will be made at the same rate as for full-time apprentices (see Payment information section below).
More information on eligibility is available from your local MEGT Apprenticeship Network Provider.
See the fact sheets here:
|First Year||$8,323 (12 monthly payments of $693.60)|
|Second Year||$6,242 (12 monthly payments of $520.20)|
|Third Year||$4,162 (12 monthly payments of $346.80)|
|Fourth Year (and beyond)||$2,081 (12 monthly payments of $173.40)|
Australian Apprentices who complete their qualification will receive a 20 percent discount on their loan.
The loan will be repayable through the tax system once apprentices are earning a sustainable income. The loan will be repayable through the tax system once apprentices are earning a sustainable income of $51,957.
Payments will be available in the three month probationary period, as long as the apprentice qualifies for and claims payment.
Apprentices will opt in for a six month payment period with payments made in arrears on a monthly basis. The opt-in will allow apprentices to receive the next six Trade Support Loan payments that fall due. Following this, the apprentices will be required to reapply (opt-in) again online to receive further payments.
Apprentices can also opt-out of receiving payments at any time.
The income of an Australian Apprentice will not impact on their eligibility for loans.
Apprentices cannot claim payments for instalments that have passed (except in very rare circumstances, such as administrative error).
Apprentices will only be able to claim the next instalment that falls due after they apply. They will not be able to claim instalments that occurred in the past except in very rare circumstances (see above). Apprentices will not have 12 months to claim.
Apprentices will only be able to claim payments while they are undertaking their apprenticeship. If an apprentice completes before the end of four years, their payments cease on completion, even if they have not received the full $20,808. Apprentices will not be paid out the remaining balance on completion.