Tuesday, 9 September 2014

$20,000 interest free loans for Trade Apprentices


Imagine a Trade Apprentice starting out with no money but the ambition to get skilled, start a career, and be independent. Well, it has become a real possibility with up to $20,000 available, interest free. And what’s more, when an apprentice successfully completes their apprenticeship, they will receive a discount of 20% off the loan (so they only owe $16,000). How good is that!

This ‘Trade Support Loans’ scheme is an Australian Government initiative. Trade Support Loans are loans paid in instalments totalling up to $20,000 over four years. 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.

Trade Support Loans are a more effective method of assisting eligible apprentices with their everyday cost while they undertake their apprenticeship. The programme provides apprentices with up to $20,000 as an income contingent loan, compared with the Tools For Your Trade payments that ceased on 30 June 2014.

ELIGIBILITY

Who is eligible to receive Trade Support Loans?

The Trade Support Loans List identifies those occupations and qualifications eligible for Trade Support Loans. This list includes certificate III or IV qualifications leading to certain priority trade occupations that currently appear on the National Skills Needs List as well as a number of agriculture and horticulture qualifications at the certificate levels II,III and IV levels.

Will current Australian Apprentices receiving Tools for Your Trade payments qualify for Trade Support Loans?

Most apprentices, who were eligible for Tools for Your Trade payments, including those apprentices undertaking qualifications in agriculture and horticulture as outlined above, will be eligible for Trade Support Loans.  More detailed information on eligibility can be accessed from Australian Apprenticeships Centres. Contact details for Australian Apprenticeships Centre can be accessed by using the "Find my AAC" search tool or calling 13 38 73.

Are school-based and/or part-time apprentices eligible for Trade Support Loans?

Yes, subject to meeting eligibility criteria.  Payments are made at the same rate as for full-time apprentices.

PAYMENT ARRANGEMENTS

How much will an apprentice receive if they opt in to receive the Trade Support Loan?

Eligible apprentices can apply for loans totalling up to $20,000 over the life of an apprenticeship. Apprentices will opt in for six monthly periods with loan payments paid monthly in arrears. The amount an apprentice is eligible to receive as a Trade Support Loan is determined by the year of their apprenticeship, that is, whether they are a first, second, third or fourth year apprentice.

Apprentices will receive up to $8,000 in the first year of their training, $6,000 in the second year, $4,000 in the third year and $2,000 in the fourth year.  Apprentices can opt out at any time.

Apprentices who complete their apprenticeship will receive a 20 per cent discount, meaning that the amount they borrowed will be reduced by 20 per cent.

There is more information available on the Government’s Industry website. We recommend you have a look over this and call 13 38 73 to take action. http://www.industry.gov.au/skills/AssistanceForIndividuals/TradeSupportLoans/Pages/default.aspx

To find your local ACC (Australian Apprenticeship Ctr) that can assist you, go to http://www.australianapprenticeships.gov.au/find-my-aac/full-list


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