Financial Incentives and Payments for Apprentices and Trainees | Sarina Russo

The Australian Apprenticeship Support Loan is designed to provide financial support for apprentices and trainees in Priority List occupations. You can receive up to $24,492* over the course of your apprenticeship or traineeship.

Unlike a regular bank loan, repayments only kick in once you start earning and reach a certain income threshold. You can opt in and out of the loan, which gives you control over how much you borrow over the lifespan of your apprenticeship or traineeship.  

There are no restrictions on how you spend the loan. It can be used to cover living expenses, clothes and tools of the trade, a car, or anything else you need to purchase. Just remember, that you will need to repay your loan once your income reaches the repayment threshold of $51,550 p/year. Australian Apprenticeship Support Loans are interest-free, however they are indexed annually in line with the Consumer Price Index (CPI).

Repayments are made through the income tax system (just like university HELP loans). Even better, once you’ve successfully completed your apprenticeship or traineeship, you’ll receive a 20% discount on the amount you need to repay

* 2023-24 lifetime limit
** 2023-24 income threshold

Australian Apprenticeship Support Loans are approved for six months at a time. Where you have a current approved loan, the following payments are available as you progress through your apprenticeship or traineeship:

• $816.41 p/month in year one
• $612.31 p/month in year two
• $408.20 p/month in year three
• $204.10 p/month in year four

Once you reach the income threshold for repayments, you’ll need to make compulsory repayments through the tax system. Find information about repayment rates on the ATO website.

You may qualify for loans payments under the Australian Apprenticeship Support Loans program if you’re:

• an Australian citizen or permanent resident; and
• undertaking an apprenticeship or traineeship that is included in the Australian Apprenticeships Priority List

For further information on Australian Apprenticeship Support Loans, click here or contact the team at Sarina Russo Apprenticeships.

The Living Away From Home Allowance (LAFHA) is a payment for apprentices who need to move out of their parent or legal guardian’s home for the first time to:

• start an apprenticeship/traineeship
• remain in an apprenticeship/traineeship
• receive essential on-the-job training with another employer

The LAFHA is available for Australian apprentices and trainees in the first 3 years of either a full or part-time apprenticeship, or a school-based apprenticeship.

Apprentices who are homeless, or become homeless during their apprenticeship or traineeship, can also receive assistance if they meet the eligibility criteria.

You will NOT be eligible for the Living Away From Home Allowance if you:

• have lodged a claim for Youth Allowance, Austudy or ABSTUDY and the claim is still current;
• receive rental or accommodation assistance from Centrelink, or free or subsidised accommodation from your employer; or
• moved out of your parental or legal guardian’s home more than 3 months before starting your apprenticeship/traineeship

Reach out to our team at Sarina Russo Apprenticeships for more information about the Living Away From Home Allowance (LAFHA). We can determine your eligibility and help you complete and submit your LAFHA for Australian Apprentices form.

The Australian Apprentice Training Support Payment provides direct financial assistance to eligible apprentices and trainees.

It is available for apprentices and trainees who commence, or resume, their apprenticeship or traineeship from 01/07/2022 onwards and who are undertaking a Certificate III or higher qualification that leads to a Priority Occupation.  Priority Occupations are occupations classified by the Australian Bureau of Statistics (ABS) as either Technicians and Trades Workers, or Community and Personal Service Workers.  The full list of Priority Occupations can be found on the Australian Apprenticeships Priority List.

The Australian Apprentice Training Support Payment is intended to help apprentices and trainees with cost-of-living pressures and to assist them to stay in training their apprenticeship.  The amount available will depend on whether the apprenticeship or traineeship is being undertaken either full-time or part-time:

• Full-time apprentices and trainees in Priority Occupations can receive payments of $1250, paid every six months for a maximum of two years (up to a total value of $5000)
• Part-time apprentices and trainees in Priority Occupations can receive payments of $625, paid every six months for a maximum of two years (up to a total value of $2500).

The Additional Identified Skills Shortage incentive is available for training contracts with a start date up to 30/06/2022.

The Additional Identified Skills Shortage (AISS) incentive provides payments for apprentices, and their employers, in the following occupations which have been identified as experiencing a shortage of skilled workers:

• Carpenters and Joiners
• Plasterers
• Plumbers
• Bakers and Pastry Cooks
• Hairdressers
• Vehicle Painters
• Air-conditioning and Refrigeration Mechanics
• Wall and Floor Tilers
• Bricklayers and Stonemasons
• Arborists

 A payment of $1,000 will be made to eligible apprentices 12 months after starting their apprenticeship, with an addition $1,000 paid on completion of the apprenticeship.

In addition to the existing apprentice incentive payments, you may be eligible for the following fortnightly payments from Centrelink:

• Youth Allowance for Australian apprentices aged 16-24
• Austudy for Australian apprentices aged 25 and over
• ABSTUDY for Australian apprentices of any age who are Indigenous Australians

To determine your eligibility for any of the above payments or benefits, please visit the Services Australia (Centrelink) website or contact Services Australia directly on 13 36 33.

Low income earners may also be eligible for a Low Income Health Care Card, to help with the cost of any medical expenses.

Sarina Russo Apprenticeships can help trainees and apprentices with a disability with the support they need to get into an apprenticeship or traineeship.

We can provide support to Australian apprentices, who may need additional help with off-the-job training through tutorial, interpreter and mentor services.

Employers may also be eligible to receive the following apprentice incentive payments when they sign up a trainee or apprentice living with a disability.

• Disabled Australian Apprenticeship Wage Support (DAAWS)
• Employment Assistance Fund (EAF)

These incentives can help employers with the costs of any modifications or specialist equipment that may be needed to create a safe and supportive workplace for apprentices with a disability.

In addition to the many incentive payments for apprentices and trainees offered by the Australian Federal Government, individual State Governments also offer benefits to eligible candidates.

Provided by the Department of Employment, Small Business and Training (DESBT), this subsidy is available to apprentices and trainees who need to travel a minimum of 100km return to attend off-the-job training for their qualification.

This card entitles apprentices and new entrant trainees undertaking training in NSW to concession fares on public transport throughout NSW.

NSW apprentices and trainees can access the Continuing Apprentices Placement Service for Apprentices (CAPS).

If you’re an out-of-work apprentice or trainee, this scheme is designed to help you find a  new employer so you can recommence and complete your apprenticeship or traineeship. Relocation assistance is also available if you need to move for your new job.

The CAPS register allows employers in these industries to find out-of-trade apprentices and contact them with a potential placement offer.

Valued up to $5,000 per year, this scholarship program is designed to provide financial assistance to NSW apprentices who have demonstrated:

• hardship in their personal circumstances
• aptitude to successfully complete their trade training
• positive attitude and application in the workplace and in off-the-job traininG

This rebate is available to help 1^st or 2^nd year apprentices with the cost of registering their vehicle. Criteria to qualify includes that your apprenticeship must be registered with the NSW Department of Education and Training.

If you need to travel or relocate to complete your qualification with a Registered Training Organisation, you may be eligible to have some of your costs covered.

Victorian trade apprentices may be eligible for 50% off the cost of registration renewal on a vehicle used for work.

A small number of apprenticeship qualifications in the ACT are not delivered by any Registered Training Organisations. This means you may need to travel interstate for off-the-job training. Where this is the case, eligible Australian apprentices are entitled to a payment to help offset the cost of travel and accommodation to attend interstate training.