Trade Support Loans – At a glanceWhat is a Trade Support Loan? A Trade Support Loan (TSL) can assist with everyday costs while you undertake your training. If you are an apprentice in a skills need occupation, you may be eligible to apply for a Trade Support Loan of up to $21,078.

TSLs are flexible to meet your individual needs with payments paid into your nominated bank account each month.

The TSLs are interest free but indexed annually in line with the consumer price index. As an additional incentive, you’ll get a 20 per cent discount on your loan when you have successfully completed your apprenticeship.

How much can I borrow? You have the choice of how much you can borrow with a Trade Support Loan. You can borrow a small amount, say $1,000, or take the full amount of $21,078 over four years.

TSL Payments have annual limits of:

$8,431 in year one

$6,324 in year two

$4,216 in year three

$2,108 in year four The loan amounts are higher in the early years of training to compensate for your lower wages.

How do I get a Trade Support Loan? To find out more about a TSL, talk to your local Australian Apprenticeship Support Network Provider. Your provider will take you (and your parent or guardian, if you’re under 18) through the loan program in detail and lodge the relevant paperwork on your behalf.

How do I pay the loan back? You will only start repaying your loan when you start earning an annual income over $45,880 (for 2019-20). Repayments are made through the tax system (like a university HELP loan).

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What can I spend the loan on? It’s your loan so you choose how to spend the money – but remember you will have to pay the money back!

You could use the money to cover living expenses, buy work equipment like tools or boots, or even save your payments to buy a car.

Who is eligible? To be eligible for a Trade Support Loan you must be an apprentice or trainee studying (Cert III or IV qualification) in an area that leads to an occupation on the Trade Support Loans Priority List.

Apprentices or trainees studying agriculture or horticulture (Cert II, III or IV qualification) in regional and rural areas may also be eligible for the loan.

Full-time, part-time and school based apprentices and trainees can access the loan. Eligible apprentices can opt in and out of the loan at any stage of their apprenticeship.

Trade Support Loans Under 18s Minors must read this fact sheet before applying for a Trade Support Loan. It should be read in conjunction with Trade Support Loans – at a glance.

What are Trade Support Loans?

Trade Support Loans (TSLs) assist with the costs of living and learning while you undertake an apprenticeship. TSLs provide you up to $21,078 if you are an apprentice in a skills needs occupation.

You are required to repay the loan through the tax system when your income meets the repayment threshold. When you successfully complete your apprenticeship, your TSL debt is reduced by 20 per cent.

There are no age restrictions for applying for a loan and it is your choice to take out a loan based on your own personal circumstances. If you are under 18 years of age, you are asked to declare on the Trade Support Loans Application Form that you have read and understood this fact sheet before applying.

What are my responsibilities when taking out a Trade Support Loan?

Taking out a loan is a serious financial responsibility as it involves borrowing money and paying it back over time. It is your responsibility to be aware of your obligations when taking on the loan and the requirement to pay it back.

Before you apply for a loan, it is advised that you consider your current circumstances to see exactly where your money goes now and how much you could afford in repayments if you were to meet the income repayment threshold. It is important to think about how your circumstances may change in the future, for example changing jobs or moving out of home.

It is recommended that you further explore available options and assess whether taking out a Trade Support Loan is the best option for you.

Information to help you make a decision and identify the responsibilities involved in taking out a loan is available on the MoneySmart website at www.moneysmart.gov.au/life-events-and-you/under-25s. You are strongly encouraged to view the information on this website to ensure you are fully aware of your responsibilities.

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How do I repay a Trade Support Loan?

Your Trade Support Loan needs to be repaid through the tax system once your income reaches the repayment threshold. For the 2019-20 financial year the income threshold is $45,880.

The amount that must be repaid each year is a percentage of your income. The percentage increases as your income increases: The more you earn, the higher your repayment will be. The Australian Taxation Office (ATO) will calculate your compulsory repayment for the year and include it on your income tax notice of assessment.

The amount that must be repaid is adjusted every year by the ATO to reflect the changes to the cost of living (in line with the Consumer Price Index (CPI)). Indexation will increase the amount of money you will have to pay back.

In addition to compulsory repayments, you can make voluntary repayments any time and for any amount. These repayments are not refundable and there are no discounts or penalties for making a voluntary repayment.

Further Information For further information on eligibility and applying for a Trade Support Loan, contact your Apprenticeship Network provider.

Trade Support Loans - Parents and Guardians Parents and guardians should use this fact sheet when helping their minor (an apprentice under the age of 18 years) decide whether to apply for a Trade Support Loan (TSL). This fact sheet should be read in conjunction with the fact sheets Trade Support Loans – At a glance and Trade Support Loans – Under 18s.

What is a Trade Support Loan?

The TSL can assist with everyday costs while an apprentice undertakes their training. Apprentices in a skills need occupation may be eligible to apply for a TSL of up to $21,078.

Apprentices must repay the loans through the tax system when their income meets the minimum repayment threshold. When the apprentice has successfully completed their apprenticeship, the TSL debt can be reduced by 20 per cent.

There are no age restrictions for applying for a TSL. Individuals do not have to take out a TSL even if they are eligible. If the apprentice is under 18 years of age, they are asked to declare on the Trade Support Loans Application Form that they have read and understood Trade Support Loans – Under 18s fact sheet before submitting an application form.

In addition, if the apprentice is under 18 years of age they are encouraged to seek acknowledgment from you, their parent or guardian, that they understand that the TSL must be repaid. Further information is available from Australian Apprenticeship Support Network (Apprenticeship Network) providers for you to ensure you are aware of the requirements and obligations the minor may take on.

What are the responsibilities of a minor when taking out a Trade Support Loan?

Taking out a loan is a serious financial responsibility as it involves borrowing money and paying it back over time. It is the responsibility of the minor to be aware of their obligations in taking out a loan and the requirement to pay it back.

When the minor is considering taking out a TSL, it is recommended that you ensure they are making an informed decision.

When providing assistance to the minor in the decision making process, it is important to consider circumstances that may change in the future and which could affect the minor’s ability to repay the TSL debt, for example changing jobs or moving out of home.

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Information to assist with identifying the responsibilities involved in taking out a loan is available on the MoneySmart website at www.moneysmart.gov.au/life-events-and-you/under-25s. You are strongly encouraged to discuss the information on this website with the minor.

How are Trade Support Loans repaid?

The TSL needs to be repaid through the tax system once the individuals’ income reaches the minimum repayment threshold. For the 2019-20 financial year the income threshold is $45,880.

The amount that must be repaid each year is a percentage of the individual’s income. The percentage increases as their income increases: The more they earn, the higher their repayment will be. The Australian Taxation Office will calculate their compulsory repayment for the year and include it on their income tax notice of assessment.

The amount that must be repaid is adjusted every year by an Indexation rate to reflect the changes to the cost of living (in line with the Consumer Price Index). The Indexation rate will increase the amount of money the individual will have to pay back.

In addition to compulsory repayments, the individual can make voluntary repayments at any time and for any amount. These repayments are not refundable and there are no discounts or penalties for making a voluntary repayment.

Further Information For further information on eligibility and applying for a TSL, the minor should contact their Apprenticeship Network provider.

Trade Support Loans Priority list The Trade Support Loans Priority List identifies the list of qualifications and occupations eligible to

receive a loan. Australian Apprentices undertaking a Certificate III or IV in the following may be

eligible for a Trade Support Loan.

Air-conditioning and Mechanical Services Plumber

Air-conditioning and Refrigeration Mechanic

Aircraft Maintenance Engineer (Avionics)

Aircraft Maintenance Engineer (Mechanical)

Arborist

Automotive Electrician

Baker

Boat Builder and Repairer

Bricklayer

Butcher or Smallgoods Maker

Cabinetmaker

Carpenter

Carpenter and Joiner

Cook

Diesel Motor Mechanic

Drainer

Electrical Linesworker

Electrician (General)

Electrician (Special class)

Electronic Equipment Trades Worker

Fibrous Plasterer

Fitter (General)

Fitter and Turner

Fitter-Welder

Floor Finisher

Furniture Finisher

Gasfitter

Glazier

Hairdresser

Joiner

Landscape Gardener

Lift Mechanic

Locksmith

Metal Fabricator

Metal Machinist (First Class)

Motor Mechanic (General)

Motorcycle Mechanic

Optical Mechanic

Painting Trades Worker

Panelbeater

Pastry Cook

Picture Framer

Plumber (General)

Pressure Welder

Print Finisher

Printing Machinist

Roof Plumber

Roof Tiler

Screen Printer

Shearer

Sheetmetal Trades Worker

Signwriter

Small Engine Mechanic

Solid Plasterer

Stonemason

Telecommunications Linesworker

Telecommunications Technician

Toolmaker

Upholsterer

Vehicle Body Builder

Vehicle Painter

Vehicle Trimmer

Wall and Floor Tiler

Welder (First Class)

Wood Machinist

Certificate II, III or IV agricultural qualification; or Certificate II, III or IV horticultural qualification in rural or regional Australia

Further information For more information on eligibility and applying under the Trade Support Loans

Program, contact your Australian Apprenticeship Support Network provider or

visit www.australianapprenticeships.gov.au

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13 38 73www.australianapprenticeships.gov.au

Your Life. Your Career. Your Future.

Repaying your Trade Support Loan New obligations for repaying your Trade Support Loan debt are now in place. If you’ve taken out a Trade Support Loan (TSL) to help with training related expenses but are planning on moving overseas to work, you’ll still need to repay the money, just as you would if you were in Australia. This will help make the system fairer for everyone.

Repayments are compulsory if your annual income is above the threshold ($54,126 for the 2015–16 financial year). You have nothing to pay if your earnings are below this amount.

WHAT’S NOT CHANGING?The existing incentives for apprentices to complete their qualification remain – a 20 per cent discount will still be applied to a loan once you have successfully completed your studies.

WHAT YOU NEED TO DOIf you have a current TSL debt and are thinking of moving overseas for six months or more, you need to give the Australian Tax Office (ATO) your new contact details by creating a myGov account, linking to ATO online services and selecting ‘update your details’.

From 1 July 2017, people overseas will use their ATO online account to lodge an assessment of their world-wide income. If you’re earning above the threshold, you’ll need to make repayments.

WHAT ARE 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. The Trade Support Loans Priority List identifies occupations and qualifications eligible for Trade Support Loans.

MORE INFORMATIONFor more information about TSL, visit www.australian apprenticeships.gov.au/content/trade-support-loans or contact your local Apprenticeship Network Provider.

For more information about your repayment obligations visit ATO.

Trade Support Loans – Tax File Numbers (TFN) Why do I have to supply my TFN to access a Trade Support Loan?

When you access a Trade Support Loan you need to provide your TFN because repayments of your loan are made through the tax system.

If you don’t already have a TFN it is important that you apply to the Australian Taxation Office (ATO) for a TFN as soon as possible. It’s best to have your TFN before you apply for a Trade Support Loan to ensure you can access the loan. Under section 8 of the Trade Support Loans Act 2014, you must provide your TFN to qualify for a Trade Support Loan.

How do I apply for a TFN?

The fastest way to apply for a TFN is with Australia Post. You can find out how to apply at

www.ato.gov.au/TFN.

I have provided my TFN but my Apprenticeship Network provider is telling me it is wrong. Why could this be happening?

After you supply your TFN on your Trade Support Loans application form, data matching software is used to check that that the information is correct. This software matches the information you provided on your Trade Support Loans application with information you have previously provided to the ATO.

If there is a discrepancy between the ATO information with your TFN, your full name, your date of birth or your address and the information you have supplied in your Trade Support Loans application, you will need to correct the discrepancy. In the event that the discrepancy is not corrected, any payments of Trade Support Loan that you have received will be considered as an overpayment and will need to be repaid.

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It is important that your details perfectly match with the ATO information to prevent the chance of discrepancies occurring. For example, if your name is ‘Jessica Smith’ on your ATO record, there will be a discrepancy if you have recorded your name as ‘Jess Smith’ on your Trade Support Loans application. A discrepancy can also be caused if the address registered with the ATO is your parents address but you identified a different address on your Trade Support Loans application form.

How do I fix the discrepancy?

You need to log on to your myGov account (www.my.gov.au/). Once logged in, click on the link to

the ATO and go to ‘My profile’ ‘Personal details’. This page shows your TFN, full name, date of birth and address details currently held by the ATO. If any of this information is no longer correct, you should update your personal details through the links on the page.

Once you have checked that all of your personal details are correct in your myGov account, you should cross-check this information against the TFN, name, and address details that you have supplied in your Trade Support Loans application form and advise your Australian Apprenticeship Support Network (Apprenticeship Network) provider of any discrepancies.

If you have any difficulties using your myGov account please contact the myGov helpdesk using the contacts list on the myGov website (www.my.gov.au/mygov/content/html/contact.html).

If you don’t have a myGov account you can contact the ATO to check if your details are correct www.ato.gov.au/contactus.

What happens if I don’t fix the discrepancy?

If you don’t fix the discrepancy, any payments of Trade Support Loans you have received will be considered as an overpayment and will need to be repaid.

Why can’t I put my Trade Support Loan against someone else’s TFN if I have their permission?

You cannot legally record your Trade Support Loan against the TFN of a relative, friend or anyone else, even if you have their permission. This is against the rules for obtaining access to a Trade Support Loan and the repayment rules, which sets out your compulsory repayments based on your personal income.

Where can I get more help?

If you have problems applying for a TFN or accessing or updating your details with the ATO, please

contact the ATO: www.ato.gov.au/contactus.

Your Apprenticeship Network provider can provide advice and assistance in relation to your Trade

Support Loan. If you don’t have the contact details for your local Apprenticeship Network provider,

you can find them at www.australianapprenticeships.gov.au.