Trade Support Loans (TSL) provide real support for apprentices to complete their skills training and provide a stronger incentive for young Australians to become apprentices.
TSL debts are repaid through the Australian Taxation Office (ATO) once your apprentice’s income is above the minimum repayment threshold. Repayment thresholds are adjusted each year to reflect any changes in average weekly earnings.
For the financial year 2023-2024 the TSL repayment threshold is $51,550.
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TitleWhat does this mean for apprentices?
If they haven’t already, your apprentice needs to advise you if they have a TSL debt.
- New employees with a TSL debt should advise you by completing a Tax File Number Declaration
- Existing employees with a TSL debt should advise you by completing a Withholding Declaration
If your apprentice has paid off their loan in full, they should advise you by completing a new Withholding Declaration.
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TitleWhat does this mean for you?
If your apprentice has advised that they have a TSL debt, and their income is above the minimum repayment threshold, you must withhold additional amounts under the pay as you go (PAYG) withholding system.
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TitleNot sure how much to withhold?
The ATO has provided the following information to help you work out the amount to withhold from your apprentice’s income and other payments:
