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Trade Support Loans and Financial Support for Australian Apprentices

A young apprentice working on a machine

Business credit can be broadly defined as the funds a business borrows to operate and grow. But there are many forms of business credit to suit the specific needs of companies. These can range from a simple credit card to a large commercial property loan.

Here’s a short overview of the types of business credit and how they are used.

Trade Support Loans (TSL) and Financial Support for Australian Apprentices

The Australian Government provides Trade Support Loans to eligible apprentices to help them manage everyday costs during their training. Apprentices can receive up to $24,492 for the 2023-24 period, which is paid in monthly instalments. These loans are interest-free, and repayment starts only when the apprentice’s income exceeds the minimum repayment threshold, which is $51,550 for 2023-24. The loan amount is indexed annually to the Consumer Price Index to maintain its real value. Moreover, apprentices who successfully complete their training are rewarded with a 20% discount on their loan amount. The TSL program is legislated under the Trade Support Loans Act 2014 and is available for apprentices in priority occupations and qualifications as listed in the Trade Support Loans Priority List 2014.

Financial Support for Apprentices

Apart from the Trade Support Loan, apprentices in Australia may be eligible for various financial supports, including the Living Away From Home Allowance (LAFHA), which assists those who must live away from their family home to undertake training. The LAFHA is a weekly tax-free payment that decreases progressively with each year of training. Eligibility for LAFHA and other government payments like Youth Allowance, Austudy, and ABSTUDY can be checked through the Apprenticeships Incentives Explorer or by consulting with an Australian Apprenticeship Support Network provider.

Additionally, the Australian Government offers incentives for apprentices training in Priority Occupations to improve access to apprenticeships and support a more diverse workforce. These incentives are part of a broader effort to encourage skills development in high-demand areas.

For detailed information on these financial supports, apprentices are advised to review the various guides provided on the respective websites or speak directly with their Australian Apprenticeship Support Network provider.

Insights and Considerations

  • Loan Repayment and Financial Planning: With the TSL being repayable only when earning above a certain threshold, apprentices need to plan for eventual repayment and manage their finances accordingly.
  • Support for Priority Occupations: The additional incentives for priority occupations highlight the government’s focus on filling skill gaps in the labour market. Apprentices should consider these priorities when choosing their training paths.
  • Comprehensive Support System: The combination of TSL, LAFHA, and other government payments demonstrates a comprehensive support system for apprentices in Australia. It’s crucial for apprentices to be aware of and utilise these supports to their full advantage.

For further exploration and assistance, apprentices are encouraged to utilise the resources available on the official websites of the Department of Employment and Workplace Relations and Australian Apprenticeships.


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