There was a lot of hype surrounding the 2014 federal budget – one of the big changes was the introduction of Trade Support Loans for Australian Apprentices.
In the budget the scheme formally known as “Tools for Your Trade” was scrapped in favour of the new Trade Support Loans. All Tools for your Trade payments ceased as of July 1st 2014.
So what’s changed? Tools for your Trade paid up to $5,500, in 5 incremental payments, over the period of an apprenticeship. These payments were more of a “grant” they didn’t need to be paid back. It was just tax free assistance for everyday expenses and of course money to buy tools.
The new Trade Support Loans can be up to $20,000 (more than 3 times the “Tools for your Trade scheme) paid over the the lifespan of an apprenticeship. The Trade Support Loan payments are made more regularly to help with the cost of living, education expenses and tools – the government has changed the scheme to offer more support to apprenticeships and also improve completion rates. Higher payments have been allocated for earlier in an apprenticeship when wages are at their lowest. Apprentices claiming the Trade Support Loan scheme will need to repay the loan. Payments will be deducted through the taxation system when their wage meets a minimum threshold.
Need more information? Check your eligibility for the Trade Support Loan scheme through your Australian Apprenticeship Centre.
You can also check out the Australian Apprenticeships website – and head to the section on Trade Support Loans for more detailed information on payments, eligibility and repayments.