Apprenticeship Tool Allowance: What Is It and Why Do You Need It?

Apprenticeships are not without upfront costs. One of the biggest early expenses that new apprentices will encounter is buying their own tools. Construction, automotive, and electrotechnology 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 what an apprenticeship tool allowance is, how to launch a claim, and other apprentice support options to explore.

Understanding the Apprentice Tool Allowance

An apprenticeship tool allowance refers to a type of financial assistance for eligible apprentices, meant to help them buy trade-related tools. 

Eligible apprentices and trainees can receive reimbursements of up to $1,000 for buying work-related tools and safety equipment. A second reimbursement of $1,000 may also be available for apprentices who complete their training between 1 July 2024 and 30 June 2029.

To claim the allowance, apprentices and trainees must submit tax invoices or receipts from the purchase of work-related tools along with their bank account details.

Apprenticeships can get back up to $1,000 for tools once the apprenticeship starts, and another $1,000 when they finish. They can make more than one claim if they don’t exceed the $1,000 limit each time. a TAFE or RTO.

When to Claim an Apprenticeship Tool Allowance

Apprentices can claim the $1,000 commencement allowance for tools bought up to one month before and up to 11 months after the apprenticeship starts. For the $1,000 completion allowance, apprentices can claim for tools bought from the start of the completion date, and they have up to 6 months to lodge the claim.

If an apprentice completes their apprenticeship between 1 July 2024 and January 2025, they can still claim an apprentice tool allowance. 

Other Apprentice Support Options

Aside from single “tool grants” that are granted to some apprentices (e.g. those who are in the construction industry), there are also several ways to lessen the out-of-pocket expenses when you’re getting started in your trade. Supports can come in the form of:

• Government-funded loans (e.g. Trade Support Loan (TSL))
• Tool reimbursement schemes are included in some awards
• State-based grants or subsidies
• Fee-free or subsidised training that frees up money for tools

1. Trade Support Loans (TSL)

Trade Support Loans are provided by the Australian Government and designed to help eligible apprentices with living expenses as they complete their apprenticeship. Once the apprentice’s income exceeds the minimum repayment threshold, the loans are repaid through the taxation system. The TSL:

• Is an interest-free loan
• Repayment only starts when your income exceeds the minimum repayment threshold — for example, $54,435 in the 2024 – 2025 financial year.* This threshold is set by the government and may change annually.
• Provides a 20% discount on debt upon successful completion of the apprenticeship
• Has a monthly instalment payment frequency

*Visit the ATO website to check what’s new about study and training loans or check the current threshold and rates.

2. State-based Tool Support (NSW and Victoria)

NSW apprentices can access Smart and Skilled funding, which covers the cost of training fees. It doesn’t directly pay for tools, but it can reduce the financial burden. Some employers in NSW may also cover tool costs or offer reimbursement, especially for government-funded programs or school-based apprenticeships.

Victoria also has fee-free TAFE for priority courses, and this includes many apprenticeships. Some employers may also receive funding to reimburse apprentices for textbooks and equipment under the Skills First Initiative.

Are Tool Allowances Included in the 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

1. Start small — Not every tool is required on day one. When starting out, your employer or supervisor may already have tools on-site. Wait until you know which tools you’ll actually use every day before spending money. Start with buying basic tools and build up your kit as needed.
2. Choose quality over quantity — Cheap and poor quality tools wear out fast. Going for the cheapest option may be tempting, especially when you’re on apprentice wages, but poor-quality tools can break easily and it can end up costing you more in the long run. The smart choice is to invest in a few high-quality items that will last.
3. Look for apprentice starter kits — These kits are often bundled at a discount. Some tool brands and retailers sell kits with essential tools in one package. Make sure to look for industry-recognised brands that your employer recommends.
4. Ask your employer or GTO for recommendations — They often know what is essential and can tell you what’s worth spending money on, what you can hold off on, and which brands work best at accomplishing the job.
5. Keep your receipts — Tools may be tax-deductible in Australia, so keep digital or hard copy receipts of your purchases. It also helps if you’re applying for an apprentice tool allowance or reimbursed through a Trade Support Loan (TSL).
6. Compare prices from trade suppliers and not just retail stores — Retail hardware stores offer convenience, but trade suppliers can provide better pricing and warranties for apprentices.

FAQs

Who is eligible for the apprentice tool allowance in Australia?

Those who are enrolled in a recognised apprenticeship or traineeship in a qualifying trade may be eligible, though qualifications differ by state. For example, apprentice tool allowance in NSW for construction-related trades comes from tool reimbursement via the Construction Training Fund (CTF).

Can I get an apprenticeship tool allowance and a Trade Support Loan at the same time?

If you’re eligible, you may be able to access both a Trade Support Loan (TSL) and a tool allowance. Contact our team if you have more questions.

How do I claim the apprentice tool allowance in my state?

The process for claiming tool allowances differs by state. For example, in NSW and Victoria, tool support may be available through employer reimbursements, wage agreements, or government-funded programs like Smart and Skilled or Skills First. Always check your training contract and talk to your employer or the team at 1300apprentice for advice.

Start Your Career with the Right Trade Tools

While there is no single “apprentice tool grant” that covers all of an apprentice’s needs, the Australian government does have a strong network of subsidies, loans, and wage structures that could help ease the pressure of training costs.

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.