Australian Apprenticeships Incentives Program 001-02270000

The Program encourages employers, through the payment of financial incentives, to offer employment-related training opportunities that will encourage people to acquire and expand their working skills. The program also encourages individuals to take up employment-related training opportunities, through the payment of personal benefits, which assist to maintain a flow of skilled employees.

Australian Apprenticeships Centres administer employer incentives and personal benefits.

The Program involves a number of standard and targeted (additional and special) employer incentives. Standard incentives are provided for employers at the commencement and completion of Australian Apprenticeships at Certificate II, III and IV levels as well as Diplomas and Advanced Diplomas. Additional and special incentives are also available to employers who employ Australian Apprentices in specific target groups and/or areas.

To be eligible for personal benefits Australian Apprentices must be undertaking an Australian Apprenticeship in a skills shortage trade occupation recognised under the 'Trade and Related Worker' section of the Australian Standard Classification of Occupations and listed on the National Skills Needs List (NSNL) as being in national skills shortage.

Personal Benefits paid under the Australian Apprenticeships Incentives Program include:

• the Tools for Your Trade Payment
• Trade Support Loans
• the Australian Apprentice Training Support payment
• the New Energy Apprentice Support payment
• the Living Away From Home Allowance
• Support for Adult Australian Apprentices payments, and
• Disabled Australian Apprentice Wage Support (the payment targeted to Australian Apprentices with disabilities)

The Tools for Your Trade Payments scheme finished on 30 June 2014.

The Tools for Your Trade payments were five tax exempt cash payments provided to support Australian Apprentices with the costs of their training, purchases of relevant tools and other costs associated with their Australian Apprenticeship.

An AASL is an interest free loan to help Australian apprentices purchase trade tools and supplies.

Apprentices:

• may be able to borrow up to $24,492 (2023-2024), which is paid in monthly instalments
• can apply for an AASL if they are completing an Australian Apprenticeship in a qualification listed on the Australian Apprenticeship Priority List
• are not required to repay the loan until they are earning above the minimum repayment threshold
• who have unpaid loan amounts will have the unpaid amount indexed according to the Consumer Price Index (CPI)
• who successfully complete the apprenticeship will receive a 20% discount on their loan amount
• will need to apply for the loan through their Australian Apprenticeships Centre
• who also receive an income support payment, including Youth Allowance (YA), Austudy and ABSTUDY apprentice payments, are not required to declare any Trade Support Loan payments as income

This payment provides up to a maximum of 2 years of financial support to Australian Apprentices doing a Certificate III level or above qualification, in a priority occupation experiencing a national skills shortage.

Eligible Australian Apprentices can claim every 6 months over the first 2 years of their apprenticeship.

For rates and coding see Assessment of income for Centrelink payments.

Australian apprentices employed in a priority occupation and undertaking work in the clean energy sector can apply for the New Energy Apprentice Support payment.

Eligible apprentices can claim, over the length of their apprenticeship, up to:

• $10,000 for a full-time apprentice
• $5,000 for a part-time apprentice

For rates and coding see Assessment of income for Centrelink payments.

LAFHA is payable to Australian Apprentices who need to leave the parental/guardian residence for the first time to take up or remain in their first Australian Apprenticeship when all other criteria are met.

LAFHA may be paid for up to 3 years. No personal income or parental income and assets tests are required to receive LAFHA. However, Australian Apprentices cannot be in receipt of Youth Allowance, Austudy or ABSTUDY and receive LAFHA at the same time.

Individual Homeless Australian Apprentices seeking assistance with verification of their status in order to receive LAFHA may approach Services Australia.

This initiative is currently targeted at Australian Apprentices aged 25 years and over and is payable to either the Australian Apprentice or the employer depending on the employment arrangements when all other criteria are met. The payments are set at $150 a week ($7,800 per annum) in the first year of training and $100 per week ($5,200 per annum) in the second year of training.

Note: SAAA payments will cease 1 July 2015. Payments that fall due before this date will still be paid.

SAAA payments are considered to be assessable income for Services Australia, Department of Veterans' Affairs and Australian Taxation Office purposes.

SAAA payments made to the employer are not assessed as the employer would have incorporated the amount in the Australian Apprentice's normal wage.

See Existing customer starts Australian Apprenticeship for coding instructions.

Services Australia can support the program by facilitating access to information for employers and employees/customers.

Other direct assistance to eligible Australian Apprentices may be available. Australian Apprentices should check their eligibility for personal benefits with their Australian Apprenticeships Centre. If an Australian Apprentice is unsure who their Australian Apprenticeships Centre is they can find out by calling 133 873.