Opinions differ over Coalition's apprentice loan scheme

While training organisations have welcomed the Coalition’s proposed apprentice loan scheme, others have been less pleased with the proposal, saying it is not the answer to low apprentice completion rates.

TAFE Directors Australia (TDA) and Group Training Australia (GTA) have voiced their support for the Coalition’s plan. TDA Chief Executive Martin Riordan says the policy puts trades careers on a more equal footing with higher education.

“University students have had a head start when it comes to income contingent loans to assist them in their study and training, and it is long overdue that those studying at apprenticeship-level courses can be provided access to the same advantage,” Riordan said.

However, Dave Noonan, Construction Forestry Mining Energy Union (CFMEU) National Secretary Construction Division, has called it “a dog of a policy”.

“A HECS-style loan which is meted out in instalments and must be paid back with interest is not a hand up, it’s equivalent to the back of the hand from the Liberal leader,” Noonan said.

The scheme would provide apprentices with $20,000 over four years. As with university loans, apprentices would need to start paying back the loans once they start earning $49,000 and above. Those who complete their apprenticeship would receive a 20% discount on the loan.