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 $20,000 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 National Skills Needs 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 will provide real support for current apprentices to complete their skills training and provide a stronger incentive for young Australians to become apprentices.

Download the fact sheet here

The Trade Support Loans Programme provides more than $1.9 billion in loans which is around double the support that would have been provided under the Tools for your Trade measure.

Around 20 per cent of trade apprentices drop out by the end of their first year and 30 per cent drop out by the end of the second year. Therefore, to encourage people to stay in their apprenticeships, loan payments are heavily weighted to the first two years of the apprenticeship when wages are at their lowest.

MEGT Apprenticeship Network Provider administers the Trade Support Loans Programme. Australian Apprentices will be able to check their eligibility for a Trade Support Loan through their local MEGT Apprenticeship Network Provider.

Or please call 13 63 48.

Employers and apprentices can access more information at: http://www.australianapprenticeships.gov.au/trade-support-loans

There are terms and conditions as well as eligibility criteria for these Loans. To date, the information available on eligibility is as follows.

The Loans are available to apprentices (Australian citizens or holders of a permanent visa) undertaking a Certificate III or IV qualification leading to a number of trade occupations on the National Skills Needs List. More than 100 qualifications are eligible such as plumbers, diesel mechanics, electricians and fitters as well as priority areas in horticulture and agriculture. However not all apprentices who were eligible for Tools For Your Trade will be eligible for Trade Support Loans as the eligibility criteria is slightly different.

School-based and/or part time apprentices may be eligible – subject to meeting the criteria.

Eligible Australian Apprentices will be required to provide their Tax File Number to their Apprenticeship Network Provider in order to receive the Trade Support Loans.

More information on eligibility is available from your local MEGT Apprenticeship Network Provider.

See the fact sheets here:

For under 18s: parent or guardian version

For under 18s

General fact sheet

Eligible first year Australian Apprentices may receive up to $8,000, second year $6,000, third year $4,000 and fourth year apprentices $2,000. Payments are made monthly in arrears (e.g. $666.67 per month in the first year; $500 per month in the second and so forth).

Australian Apprentices who complete their qualification will receive a 20 per cent discount on their loan. The loan will be repayable through the tax system once apprentices are earning a sustainable income, $53,345 per year.

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 opt-in again 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.

Unlike the Tools For Your Trade payment arrangements, Australian Apprentices will not be able to claim payments retrospectively and there will be no waiting period to claim. Apprentices will not be able to 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 $20,000. Apprentices will not be paid out the remaining balance on completion.

The loans will be paid monthly in arrears, spread over the four years of an apprenticeship, diminishing as wages increase so that maximum support is provided in the early years of the apprenticeship when most needed.

 Amount  Paid at
Trade Support Loans
(subject to approved application)
Paid to the Australian Apprentice
undertaking Cert III or IV qualification
that leads to an occupation listed on the Trade Support Loans Priority List
or
Cert II–IV agricultural qualification
or
Cert II–IV horticulture qualification
in rural or regional Australia.

Up to $20,000
(lifetime limit)

Paid monthly in arrears over the term of the Australian Apprenticeship.

MEGT Australia

Australian Apprenticeships Centres are now Australian Apprenticeship Support Network locations.

MEGT (Australia) Ltd, trading as MEGT, is an Apprenticeship Network Provider contracted by the Australian Government as represented by the Department of Education and Training to provide Australian Apprenticeship Support Network (AASN) services to employers and Australian Apprentices. MEGT is one of eleven Apprenticeship Network Providers throughout Australia. This website does not represent the Australian Government. If you wish to access information about Australian Apprenticeships from the Australian Government, please visit http://www.australianapprenticeships.gov.au.

Australian Apprenticeships Incentives Programme Guidelines and associated appendices may be viewed on the Department of Education and Training website.

Australian Apprenticeship Network Providers are an Australian Government funded initiative.

Need help? Call us at 13 MEGT (6348) or email us at aasninfo@megt.com.au

MEGT (Australia) Ltd