HECS-like loans to support trades

THE Federal Government has extended training loans, like those it has traditionally provided for university students, to the trades sector.

Industry Minister Ian Macfarlane said Trade Support Loans would start from July 1, in a similar format to the HECS-HELP tertiary student loans. 

Mr Macfarlane said it was as part of the government’s “comprehensive plan to create a more responsive skills and training system that cuts red tape and trains apprentices that are job-ready”.

The Federal Government has set aside $1.9 billion in Trade Support Loans.

“Australia’s productivity and competitiveness depend on a highly trained workforce,” Mr Macfarlane said. “Trade Support Loans will help more apprentices complete their training and get the skills they need to fill the jobs that businesses want.

“Many young apprentices do it tough in the early years and these loans, paid monthly, will ease the financial burden and help increase training completion rates,” he said.

“Trade Support Loans are interest free. They are indexed annually with CPI, but aren’t subject to a commercial rate of interest as a bank loan would be. This is the policy we took to the election, and this is the policy we are implementing.

“Our Trade Support Loans are a responsible investment in the nation’s future tradespeople,” Mr Macfarlane said.

The Trade Support Loans programme offers loans of up to $20,000 which are repayable once apprentices are earning a sustainable income of around $50,000.  Apprentices will receive a 20 percent reduction in the amount of the loan once they complete their training.

The programme targets occupations on the National Skills Needs List such as plumbers, diesel mechanics, electricians and fitters, as well as well priority areas in horticulture and agriculture with more than 100 qualifications eligible.

www.industry.gov.au

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