Every month, Bob takes a minute or two to sort out an issue a young tradie is facing and hopefully set him (or her) straight when it comes to life on a building site. This month, young Adam has a question about getting himself the tools of the trade.
Dear Bob,
I’m 17 and I’ve just started my apprenticeship. Work provides my van but I need to provide my own tools. I’m on apprentice wages and I’m not sure how to find the cash. Any advice?
Cheers,
Adam
BOB SAYS:
G’day Adam.
I’m glad to hear you’re already on the tools. Well… almost, right? In all seriousness though, congrats on starting your apprenticeship mate, that’s great news.
Now, let’s get this tool business sorted.
In previous years, the government provided trade apprentices with a tool grant of $5,500 to cover their initial setup costs in their chosen trade. This scheme, known as ‘Tools for Your Trade’, has now been replaced with a thing called the Trade Support Loans Scheme, which you can use to pay for your tools and other expenses related to your apprenticeship.
The good news is that the loan scheme offers a up to $20,000 over the course of your apprenticeship, which is great if you need to replace lost, worn out or stolen tools (the Tool Grant totaled only $5,500).
The bad news is that this is a loan, not a gift, so it must be paid back. Once you start to earn $53,345 or more, you must start repaying the loan. The silver lining here is that if you finish your time and get qualified, you get a 20% discount on the loan. Just another incentive to make sure you finish your apprenticeship, hey?
The loans are optional, meaning if yourself or your employer wants to cover your costs you don’t have to take the loan, but it’s good to know it’s there.
Hope this info helps you Adam, and good luck with your apprenticeship.
Your mate,
Bob