Apprentice Tool Allowance
Apprenticeships are not without upfront costs. One of the biggest early expenses that new apprentices will encounter is buying their own tools. Construction, plumbing, automotive, and electrical are examples of industries where using specialised equipment is very important.
Depending on where you live in Australia and what trade you’re entering, you may be eligible for an apprenticeship tool allowance, government loans, or subsidies that may help cover the cost of equipment you require for your trade.
Let’s look at how apprentice tool allowances work, how to make a claim and other apprentice support options to explore.
NSW | VIC | QLD | WA | SA | TAS | NT
How Do You Get the Tool Allowance?
In Australia, eligibility for tool-related support can vary depending on your trade, award, state or territory.
The claiming process depends on the type of support. There is no single national claim process for apprentice tool allowances across Australia.
Some apprentices may be entitled to a tool allowance under their relevant award. This is usually an employment entitlement paid by the employer, rather than a separate government reimbursement claim. Whether it applies will depend on the award, the type of work being performed, and the tools or equipment required.
Other Apprentice Support Options
Aside from award-based tool allowances, apprentices may be able to access other forms of support to reduce out-of-pocket costs when starting a trade. These may include:
- Government-funded loans such as the Australian Apprenticeship Support Loan (previously the Trade Support Loan)
- State-based grants or subsidies
- Fee-free or subsidised training programs
Australian Apprenticeship Support Loans
Australian Apprenticeship Support Loans are a government funded option designed to help eligible apprentices with living and training costs while they complete their apprenticeship. This loan was previously known as the Trade Support Loan.
Eligible apprentices can apply to receive monthly loan payments during their apprenticeship, up to the maximum annual loan limit. Repayments only begin once their income exceeds the minimum repayment threshold, which is updated each financial year.
Apprentices who successfully complete their apprenticeship may receive a 20% discount on the loan amount.
Australian Apprenticeship Support Loans are not the same as a tool allowance. However, eligible apprentices may be able to access an Australian Apprenticeship Support Loan alongside other forms of support, such as state training subsidies, travel assistance, employer-provided tools or award-based allowances.
State-Based Support
Apprentice support in Australia varies depending on your state, trade, training provider and award. While some apprentices may be eligible for tool allowances, there is not one single national tool allowance that applies to every apprentice across Australia.
In many cases, support may come through a combination of:
- State-based training subsidies
- Travel and accommodation assistance for off-the-job training
- Employer-provided tools
- Award or enterprise agreement tool allowances
- Industry-specific programs
- Australian Apprenticeship Support Loans
Below is a general guide to apprentice support available across each state and territory.
NSW Apprentice Tool Allowance
NSW apprentices may be eligible for fee-free or subsidised training through Smart and Skilled, depending on their apprenticeship, training provider and eligibility. This can reduce the cost of formal training and help make an apprenticeship more affordable.
NSW apprentices and trainees may also be eligible for travel and accommodation assistance where they need to travel to attend required off-the-job training.
VIC Apprentice Tool Allowance
Victorian apprentices may be able to access subsidised training through the Skills First program, depending on the course, provider and eligibility requirements.
Some Victorian apprentices may also be eligible for Free TAFE where their course or pathway is included, but this should not be assumed as applying broadly to all apprenticeships.
QLD Apprentice Tool Allowance
Queensland apprentices and trainees may be eligible for subsidised training through Queensland Government apprenticeship and traineeship funding, including User Choice funding.
Eligible apprentices may also be able to access travel and accommodation assistance if they need to travel a significant distance to attend required off-the-job training.
WA Apprentice Tool Allowance
Western Australia has a specific apprentice tool allowance available through the Construction Training Fund for eligible construction-related apprentices and trainees.
Eligible apprentices may be able to claim up to $1,000 for work-related tools or safety equipment at the start of their apprenticeship, and a further $1,000 on completion, for eligible apprenticeships and traineeships within the relevant program dates.
WA apprentices and trainees may also be eligible for travel and accommodation assistance where they need to travel to attend required off-the-job training.
SA Apprentice Tool Allowance
South Australian apprentices may be eligible for subsidised training where their course appears on the SA Government’s Subsidised Training List and they meet the relevant eligibility requirements.
Apprentices and trainees in regional or rural South Australia may also be able to access travel and accommodation support where they need to travel to attend required training.
TAS Apprentice Tool Allowance
Tasmanian apprentices and trainees may be supported through Skills Tasmania funding, which helps subsidise training delivery for eligible apprenticeships and traineeships.
Travel and accommodation assistance may also be available where apprentices need to travel to attend required training.
NT Apprentice Tool Allowance
Northern Territory apprentices and trainees can access apprenticeship support services through Apprenticeships NT and Australian Apprenticeship Support Services.
Eligible apprentices and trainees may also be able to access travel and accommodation subsidies where required off-the-job training is not available close to their home or workplace.
Fee-Free or Subsidised Training
Some apprentices may be able to access fee-free or subsidised training through state or territory government programs. This support usually applies to the formal training component of an apprenticeship, rather than to tools directly.
Depending on the state, trade and training provider, subsidised training may reduce course fees, enrolment costs or other training-related expenses. This can help lower the overall cost of completing an apprenticeship, especially in priority industries or skills-shortage areas.
Fee-free or subsidised training is not the same as a tool allowance. Apprentices should check with their training provider, state or territory training authority, or Apprentice Connect Australia Provider to confirm what training subsidies are available and whether any separate support exists for tools, uniforms or safety equipment.
Are Tool Allowances Included in Your Pay?
There are some cases where award wages include a tool allowance as part of an hourly rate, but it differs depending on industry and agreement. For instance, the Building and Construction General On-site Award builds the allowance into the apprentice’s wage.
It’s always a good idea to:
- Review your employment contract
- Speak with your employer
- Explore apprentice salaries to understand how allowances fit into your pay.
- Get in touch with a GTO (Group Training Organisation), like 1300apprentice, to get confirmation on what you’re entitled to.
GTOs directly employ apprentices and trainees and place them with host employers. This takes the stress out of finding the right opportunity and ensures you’re supported every step of the way.
Explore apprenticeships at 1300apprentice.
Tips for Buying Tools as an Apprentice
- Start small: Your employer or supervisor will likely have tools on site. Wait until you know which tools you will use daily before buying.
- Choose quality over quantity: Cheap tools break quickly and cost more in the long run. Invest in quality items from trade-recognised brands.
- Look for apprentice starter kits: Many retailers sell bundled starter kits at a discount for common trades.
- Ask for recommendations: Your employer and colleagues know which brands and tools work best for your trade.
- Keep your receipts: Tools are tax-deductible in Australia and receipts are required for tool allowance claims.
- Compare trade suppliers: Trade suppliers often offer better pricing and warranties than retail hardware stores.
Frequently Asked Questions
Who is eligible for the apprentice tool allowance?
Apprentices and trainees enrolled in a recognised apprenticeship or traineeship in a qualifying trade are eligible. Eligibility requirements can vary by state, so check with your training provider or the team at 1300apprentice.
Can I get a tool allowance and an Australian Apprenticeship Support Loan at the same time?
Yes. If you are eligible for both, you can receive the tool allowance and the Australian Apprenticeship Support Loan simultaneously. They are separate programs.
How do I claim the tool allowance in my state?
The claiming process varies by state. Generally, you submit tax invoices or receipts for eligible tool purchases along with your bank details. In NSW, additional support may be available through the Construction Training Fund. In VIC, fee-free TAFE and Skills First funding can supplement the federal allowance. Contact 1300apprentice for guidance specific to your state.
What tools should I buy first?
Start with the basics your employer recommends for your first weeks on the job. Avoid buying a full toolkit before you know exactly what you will use daily. Your employer or TAFE can provide a recommended list for your trade.
Can I claim tools I bought before starting my apprenticeship?
In some cases, yes. Tool allowance rules may allow claims for eligible tools and safety equipment bought shortly before your apprenticeship starts, but the timing rules can vary depending on the program. Keep your receipts and check your eligibility before purchasing a full toolkit.
What counts as an eligible tool purchase?
Eligible purchases usually include work-related tools and safety equipment required for your trade. This may include hand tools, power tools, tool storage, work boots, PPE or other items your employer or training provider recommends for your apprenticeship.
Can I claim second-hand tools?
Second-hand tools may be harder to claim because you generally need valid proof of purchase, such as a tax invoice or receipt. Before buying second-hand, check whether the purchase will meet the evidence requirements for your claim.
Is a tool allowance the same as an award tool allowance?
No. A reimbursement-style apprentice tool allowance is different from a tool allowance that may be included in your pay under an award or agreement. Fair Work explains that some awards include tool allowances, and in some cases employers must provide or reimburse tools required for work.
Can my employer provide tools instead of me claiming an allowance?
Yes, in some workplaces the employer may provide the tools you need or reimburse approved purchases directly. Always ask your employer what is supplied before buying your own tools.
Can I claim work tools on tax as well?
Possibly, but tax deductions are separate from apprentice tool allowance claims. You should keep receipts and get advice from the ATO or a tax professional about what you can claim.
What happens if I change employers during my apprenticeship?
Changing employers does not automatically mean you lose access to support, but your eligibility and claim process may depend on your apprenticeship status and the rules of the relevant program. Keep your training contract details and receipts, and ask your apprenticeship support provider before lodging a claim.
Can school-based apprentices claim a tool allowance?
School-based apprentices may be eligible for some forms of apprenticeship support, but eligibility depends on the trade, training arrangement and program rules. It is best to check before purchasing tools.
Are uniforms and safety gear included?
Safety equipment may be included where it is required for your trade or workplace, but everyday clothing is less likely to be covered. Items such as work boots, protective eyewear, gloves or other PPE may be eligible if they are required for your apprenticeship.
Need help understanding your entitlements? 1300apprentice helps you understand your entitlements from day one. We’ll support you through training, job matching, and provide career advice that can help you land the job you want.
