First and second year apprentice wages are rough. You’re doing a full trade’s worth of work for a fraction of the pay, and bills don’t care that you’re “still learning.” That’s the exact gap the Australian Apprenticeship Support Loan (AASL) was built for — it’s a government loan that tops up your income while you train, on top of your wages.
The catch is it’s still a loan. It works a lot like HECS-HELP: you don’t pay it back until you’re earning decent money, but it does get indexed and it does eventually come out of your pay. A lot of apprentices take it without really understanding what they’ve signed up for. This guide breaks down how much you can get, how repayments work, and what to weigh up before opting in.
The short version (TL;DR)
- You can borrow up to $27,048 (2026-27 financial year) over the life of your apprenticeship, paid to you monthly.
- Monthly instalments are higher in year one and drop each year — roughly $901.61 a month in year one down to $225.40 a month in year four and beyond.
- Finish your apprenticeship and you get a 20% discount knocked off your total loan balance.
- You only start repaying once your income is above the compulsory repayment threshold — $69,528 for 2026-27, same system as HECS.
- You have to be training in an occupation or qualification on the Australian Apprenticeships Priority List to be eligible.
- It’s optional — you opt in, and you can choose how much of the available amount you actually draw down.
What the AASL actually is
The AASL is a voluntary income-support loan for apprentices in priority trades — the government pays it to you monthly to help cover cost of living while you’re on training wages. It’s separate from your wage and separate from other apprentice payments like the Living Away From Home Allowance. It’s administered by the Department of Employment and Workplace Relations (DEWR) and handled through your Australian Apprenticeship Support Network (AASN) provider — the same organisation that helps you with your training contract, things like BUSY at Work or MEGT.
Because loan caps are indexed each financial year, the total amount available changes slightly year to year. For 2026-27 the lifetime cap is $27,048 — up from $25,983 the year before. Indexation is capped at whichever is lower: the Wage Price Index or the Consumer Price Index, so it shouldn’t blow out faster than wages do.
How the money actually arrives
You don’t get it as one lump sum. It’s paid monthly in arrears, and the monthly amount is deliberately front-loaded — bigger in your first year when your apprentice wage is lowest, then stepping down each year as your wage goes up. For 2026-27 the monthly instalments look like this:
- Year 1: $901.61 per month
- Year 2: $676.20 per month
- Year 3: $450.80 per month
- Year 4 and beyond: $225.40 per month
You don’t have to take the full amount — you can opt in for a lower monthly amount, or stop drawing it down at any time. Every dollar you draw is added to your loan balance and will eventually need to be repaid once you’re earning above the threshold.
Who’s eligible
You need to be an Australian Apprentice training towards a Certificate III, IV, Diploma or Advanced Diploma that’s on the Australian Apprenticeships Priority List at the point you sign up. This list covers most traditional trades experiencing skills shortages — electrical, plumbing, carpentry, automotive and plenty more — but it’s periodically reviewed, so it’s worth checking your specific qualification is still listed. If your trade isn’t on the list, you won’t be eligible for the AASL even if you’re eligible for other apprentice supports.
The 20% completion discount
This is the main upside baked into the loan: if you complete your apprenticeship, 20% of your total loan balance is wiped automatically. So if you’ve drawn down $20,000 over your apprenticeship and you finish, your debt drops to $16,000 before indexation and repayments even come into it. If you don’t complete — you drop out, change trades, or don’t finish for whatever reason — you don’t get the discount and the full amount you drew stays on the books.
There was also a one-off bonus: apprentices with an AASL debt that existed before 1 June 2025 had an extra 20% cut applied automatically as part of a 2025 debt-relief measure, on top of the usual completion discount. That was a one-time event already applied where it applied — it’s not an ongoing feature of the scheme.
How and when you repay
Repayment works exactly like HECS-HELP and other study and training loans — it’s all one combined “study and training support loans” system through the Australian Taxation Office. You don’t repay anything while your income is below the compulsory repayment threshold. For the 2026-27 income year that threshold is $69,528. Above that, you repay a percentage of your total income (not just the amount over the threshold), starting around 15c in the dollar and stepping up the more you earn, capped at 10% for very high incomes.
Repayments come out automatically through the tax system, the same way HECS repayments do — your employer withholds extra tax based on your income, and it’s reconciled at tax time. The loan balance is indexed each year (again, capped at the lower of WPI or CPI), so it can grow slightly even while you’re not making compulsory repayments.
Weighing it up
There’s no getting around it: the AASL is real debt, and it sits alongside any HECS-HELP debt from other study, all counted against the same repayment thresholds. The case for taking it is straightforward — apprentice wages in year one and two are tight, and having an extra few hundred dollars a month can be the difference between managing and not. The completion discount also softens the blow if you see the apprenticeship through.
The case for caution is just as straightforward — it’s a loan, not a grant, and every dollar drawn down does eventually need repaying once you’re earning enough. It’s worth thinking about how much you actually need versus how much is on offer, rather than automatically taking the maximum. Talking it through with your Australian Apprenticeship Support Network provider before you opt in is a reasonable place to start.
How to apply
You apply through your Australian Apprenticeship Support Network (AASN) provider — the organisation supporting your training contract. They’ll talk you through eligibility, help you opt in through the government’s apprenticeship system, and set your monthly instalment amount.
Frequently asked questions
Is the AASL the same as HECS?
No, but they’re cousins. The AASL is its own loan for apprentices, but it’s repaid through the same “study and training support loans” system as HECS-HELP, using the same income thresholds and repayment rates.
Can I get the AASL and other apprentice payments at the same time?
Yes — the AASL is separate from things like the Living Away From Home Allowance or training support payments. They’re not mutually exclusive, though each has its own eligibility rules.
What happens to my loan if I don’t finish my apprenticeship?
You keep the debt for whatever you drew down, but you miss out on the 20% completion discount. The debt still gets indexed and repaid the same way once you’re earning above the threshold, regardless of whether you finished the trade or not.
Can I change how much I draw down partway through?
Yes, you can adjust or stop your monthly instalment through your AASN provider — you’re not locked into the full amount for the whole apprenticeship.
This guide is general information only — not financial or legal advice. Amounts and rules change and vary by state and trade. Always confirm with the official sources linked above before making decisions. Information correct as at July 2026.
Official sources: DEWR — Australian Apprenticeship Support Loans, ATO — Study and training loan repayment thresholds and rates, DEWR — Australian Apprenticeships Priority List.