20% completion discount Formerly Trade Support Loan
Australian Apprenticeship Support Loans (formerly Trade Support Loans)
A loan for apprentices: payments over a four year period, and a 20% discount if you finish. This page covers what it is, what the discount does and does not cover, and how the debt is repaid once you are earning.
The rules in one place
Payments over 4 years, plus fourth-year rate payments for any additional years
Until the apprentice completes their apprenticeship or reaches the lifetime limit. Where an apprentice successfully completes, a 20% discount is applied to the amount borrowed.
- The scheme was previously called the Trade Support Loan (TSL) — older paperwork and payslips may still use that name.
- The 20% discount applies to the amount borrowed. It does not cover indexation that has been applied, or repayments already made.
- Payments are administered by the Apprentice Connect Australia Provider and the Department of Employment and Workplace Relations — not the ATO.
- The debt itself is collected by the ATO through PAYG withholding, the same as HELP.
What the 20% discount is worth
It is a percentage of what you borrowed, so it scales with how much you drew down. A simple way to think about it:
| Borrowed | 20% discount | Debt after the discount |
|---|---|---|
| $10,000 | $2,000 | $8,000 |
| $20,000 | $4,000 | $16,000 |
| $30,000 | $6,000 | $24,000 |
These are illustrations of the 20% rule, not a schedule of how much you can borrow — the payment rates and the lifetime limit are set by the Department of Employment and Workplace Relations, not the ATO. Check the current rates before you rely on a number.
How the debt is repaid
From the 2025–26 income year you only make a compulsory repayment once your repayment income exceeds the minimum threshold — $69,528 for 2026–27 — and the repayment is calculated only on the portion of your income above it.
You tell your employer you have a study or training loan using the tax file number declaration (when you start a job) or a withholding declaration (if you are already working), and they withhold the extra amount through PAYG. The withholding is only applied to the loan after you lodge your tax return and the compulsory repayment is calculated — your balance does not drop pay by pay.
Frequently asked questions
What is an Australian Apprenticeship Support Loan?
An income contingent loan for eligible Australian apprentices. It was previously called the Trade Support Loan (TSL), and AASL is the name used now. Payments are offered over a 4 year period, and an apprentice may attract payments at the fourth-year rate for any additional years past the fourth, until they complete the apprenticeship or reach the lifetime limit.
What is the 20% discount?
A 20% discount is granted where an Australian Apprentice successfully completes their apprenticeship. It applies to the amount borrowed — it does not include indexation that has been applied, or repayments that have already been made.
Who administers it?
Payments are administered by the Apprentice Connect Australia Provider and the Department of Employment and Workplace Relations. Once you are working and earning over the repayment threshold, the debt is collected by the ATO through the tax system like any other study loan.
Is it the same as a VET Student Loan?
No. A VET Student Loan funds a diploma or above qualification through the VET Student Loans program. An AASL is a living and tool allowance style loan for apprentices in a trade. They are separate schemes with separate rules, though both end up as a debt collected through PAYG.
Do I have to pay it back if I do not finish?
The 20% discount is tied to completing the apprenticeship, so not finishing costs you the discount. The loan itself is still a debt and is collected once your income is above the minimum repayment threshold.
How much will I repay each year?
From the 2025–26 income year you only make a compulsory repayment once your repayment income exceeds the minimum threshold — $69,528 for 2026–27 — and the repayment is calculated only on the portion of your income above it. The repayment is the same calculation that applies to HELP and the other study and training support loans — see the repayment calculator.
Related
- All study & training loan schemes
- HECS / HELP repayment calculator — the repayment on your income
- Indexation — what happens to the balance each year
Scheme rules from Australian Taxation Office, checked 12 October 2026.