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The Apprenticeship Community

Current Apprentices/Trainees Trade Support Loans

Trade Support Loans are loans paid in instalments totaling up to $20,000 over the life of an Australian Apprenticeship. These loans are intended to assist apprentices with everyday costs while they complete their apprenticeship. Eligible trade Australian Apprentices may apply (opt-in) for regular instalments according to their needs.

How do Trade Support Loans work?

Trade Support Loans are a more effective method of assisting eligible apprentices with their everyday costs while they undertake their apprenticeship. The programme provides apprentices with up to $20,420 as an income contingent loan.

 

Program   Trade Support Loans
Amount   Up to $20,420
 
Payments   Monthly in arrears, adding to:
Year 1   Up to $8,168 in the first year of their training (12 monthly payments of $680.66)
Year 2   Up to $6,126 in the second year of their training (12 monthly payments of $510.50)
Year 3   Up to $4,084 in the third year of their training (12 monthly payments of $340.33)
Year 4   Up to $2,042 in the fourth year of their training (12 monthly payments of $170.16)
 
Indexation of Lifetime Limits of available support   Indexed on 1 July 2017 and each later 1 July in line with increases in the consumer price index to maintain real value.
 
Application   Apprentices apply for a loan through their Australian Apprenticeship Support Network (Apprenticeship Network) provider in line with the year of their apprenticeship. They can then 'opt in' six monthly. Apprentices can opt out at any time.
 
Repayment   Loan amount repaid through the taxation system when the minimum income threshold is reached.

In 2017-18 the minimum repayment occurs at income threshold of $55,874.

Once an apprentice successfully completes their apprenticeship, a 20% discount is applied to the loan amounts borrowed.

Loan value is indexed in line with increases in the consumer price index to maintain real value.