Financial Support for Australian Apprentices
06 July 2022 | National
The Australian Government has announced new financial assistance for eligible Australian Apprentices to help with the costs of undertaking an apprenticeship.
Australian Apprentice Training Support Payment
The Australian Apprentice Training Support Payment is available to eligible apprentices commencing from 1 July 2022 in Priority Occupations listed on the Australian Apprenticeship Priority List.
From 1 July 2022 to 30 June 2024, Australian Apprentices training in Priority Occupations can receive assistance of up to $5,000 ($1,250 paid every six months for their first two years), to ensure they are supported to complete their training.
From 1 July 2024, the Australian Apprentice Training Support Payment will continue to be targeted at areas of skills need. Australian Apprentices training in Priority Occupations will be able to receive assistance of up to $3,000 ($750 paid every six months for their first two years).
Further information is available from the Australian Apprenticeships Incentive Reform Factsheet and Australian Apprenticeships Incentive System Frequently Asked Questions. Visit Australian Apprenticeships to determine your eligibility and to apply for the Australian Apprentice Training Support Payment or contact your local Australian Apprenticeship Support Network provider.
Trade Support Loans
Trade Support Loans (TSLs) are available to eligible apprentices to assist with everyday costs while completing your apprenticeship. You can receive up to $21,779 over the life of the apprenticeship (lifetime limit in 2021-22). The year of your apprenticeship determines the amount you may receive. There is no waiting period to claim.
Currently you may be eligible if:
- you are studying a Certificate III or IV qualification that leads to an occupation listed on the Trade Support Loans Priority List: or
- you are studying a Certificate II, III or IV agricultural qualification specified on the Trade Support Loans Priority List: or
- you are studying a Certificate II, III or IV horticulture qualification specified on the Trade Support Loans Priority List in rural or regional Australia - the Trade Support Loan Rules specify a list of postcodes for rural or regional areas of Australia: and
- you are an Australian citizen or permanent resident.
When you access a TSL you need to provide your Tax File Number (TFN) as repayments of your loan are made through the Australian tax system. It's best to have your TFN before you apply for a TSL to ensure you can access the loan.
TSLs are paid in instalments to your nominated bank account. You can opt in and out of the TSL over the life of your apprenticeship. You cannot claim retrospective TSL payments.
TSLs are interest free but indexed annually in line with the consumer price index. TSL is repaid through the tax system, after you have reached the minimum repayment threshold ($47,014 for 2021-22). Repayments are calculated as a percentage of your income.
To find out the amount you need to pay back, read about thresholds and rates. When you successfully complete your apprenticeship, you will receive a 20% discount on the amount you need to repay.
To see if you are eligible for, or to apply for a TSL, contact your local Australian Apprenticeship Support Network (Apprenticeship Network) provider.
The Trade Support Loans Act 2014 is the main piece of legislation used to administer the Trade Support Loans Program. A copy of the Act, the Guidelines and supporting documents are available on the Department of Education, Skills and Employment website. The Government is seeking amendments to the Trade Support Loans Act 2014 to expand access to all Australian Apprentices on the Australian Apprenticeship Priority List.
Living Away from Home Allowance
The Living Away from Home Allowance (LAFHA) is an allowance for eligible apprentices during the first three years of training.
You may be eligible to receive the allowance if you need to move away from your parental or legal guardian’s home for the first time to:
- start an Australian Apprenticeship
- remain in an Australian Apprenticeship
- receive essential supplementary on-the-job training with another employer.
You may also be eligible to receive the allowance if you are undertaking an Australian Apprenticeship and you are, or become, homeless.