TSL Repayment Calculator Australia 2025: Trade Support Loans Explained

If you completed an Australian Apprenticeship and took out a Trade Support Loan (TSL), you may be wondering how repayments work — and how much you're expected to pay back each year. TSL repayments are income-contingent, meaning they only kick in once your income exceeds a threshold, and they're collected automatically through the tax system. This guide explains everything you need to know about TSL repayments in FY 2025-26, including how to calculate your annual obligation.

What Is a Trade Support Loan (TSL)?

Trade Support Loans are government loans for apprentices undertaking a Certificate III or IV Australian Apprenticeship in an eligible occupation. The scheme was introduced to help apprentices manage living expenses during their training, at a time when apprenticeship wages can be quite low — especially in the early years.

TSL payments are made fortnightly or in lump sums directly to the apprentice. The maximum amounts available depend on the year of apprenticeship:

• Year 1: Up to $6,230 (indexed annually)
• Year 2: Up to $6,230
• Year 3: Up to $3,115
• Year 4: Up to $3,115

Once your apprenticeship is complete (or if you leave before finishing), your TSL debt is transferred to the ATO, which manages it in the same way as other study and training support loans — including HECS-HELP, VET Student Loans, and the Student Financial Supplement Scheme (SFSS). Repayments are income-contingent: you only pay when your income is high enough, and the repayments are collected through your annual tax assessment.

How TSL Repayments Work in FY 2025-26

Under the new marginal repayment system introduced for FY 2025-26, TSL repayments use the same thresholds and rates as HECS-HELP and other ATO-managed study loans. The repayment threshold has increased significantly — from $54,435 to $67,000 — providing relief for lower-income former apprentices.

Your repayment income is broadly your taxable income, plus reportable fringe benefits, reportable employer super contributions, and total net investment losses. For most apprentices in the workforce, it will simply be your taxable income from employment.

Source: ATO study and training loan repayment rates, FY 2025-26.

Your compulsory repayment will never exceed your actual TSL balance — the ATO caps it so you won't overpay. Any excess withholding throughout the year will come back as a refund when you lodge your tax return.

For a broader view of your take-home pay — including income tax, Medicare Levy, super, and study loan repayments — try our Take-Home Pay Calculator. For study loan repayment estimates using the same thresholds, see the HECS-HELP Calculator.

TSL vs HECS-HELP: Key Similarities and Differences

TSL and HECS-HELP share the same repayment machinery, but there are some important distinctions between them:

The most important difference to note: the 20% reduction on historical HECS-HELP debts that took effect on 1 June 2025 did not apply to Trade Support Loans. If you have TSL debt, your balance was not reduced under that measure — only ordinary HECS-HELP debt qualified.

TSL Indexation: How Your Balance Can Grow

Like all ATO-managed study and training loans, your TSL balance is indexed to the Consumer Price Index (CPI) on 1 June each year. This means your balance grows in line with inflation if you haven't repaid it in full.

For context, the indexation rates applied in recent years have been:

• 2023: 7.1% (the highest in decades, due to post-COVID inflation)
• 2024: 4.7%
• 2025: 3.2%

If you borrow the full $18,690 over a four-year apprenticeship and don't repay anything for several years, indexation can add a meaningful amount to your balance. For example, at 3.2% indexation, a $15,000 balance grows by $480 in a single year — before any compulsory repayments are applied.

The practical implication: if you can afford to make voluntary repayments — especially before 1 June each year — you reduce the balance that indexation is calculated on, which can save you money over the life of the loan.

How Salary Sacrifice Affects Your TSL Repayment

A common question from tradespeople who've entered the workforce and started salary sacrificing into super: does salary sacrifice reduce my TSL repayment?

The answer is no. Just like HECS-HELP and SFSS, the ATO adds back reportable employer super contributions (which includes salary-sacrificed super) to your taxable income when calculating your study loan repayment income. So if you earn $80,000 and salary sacrifice $10,000 into super — reducing your taxable income to $70,000 — your TSL repayment income is still assessed at $80,000.

You'll still get the income tax benefit of salary sacrifice — you'll pay 15% contributions tax inside super instead of your marginal tax rate. But your TSL repayment won't shrink as a result. To model the tax savings from salary sacrifice, use our Salary Sacrifice Calculator.

Tips for Managing Your TSL Debt

Here are some practical strategies to stay on top of your Trade Support Loan:

• Check your current balance: Log into MyGov and go to ATO Online Services → Tax → Accounts → Loan accounts. Your TSL balance is listed separately from any HECS-HELP debt you may also have.
• Make sure your employer is withholding correctly: When you start a new job, complete a Tax file number declaration (NAT 3092) or withholding declaration that indicates you have a study or training support loan. Your employer will then withhold an additional amount each pay period to cover your expected annual repayment.
• Consider voluntary repayments before 1 June: If you have spare cash, paying down your TSL before the June indexation date reduces the balance that grows. Even a $1,000–$2,000 voluntary repayment can save you money in the long run.
• Don't confuse TSL with your income tax: Your TSL repayment is a separate obligation from income tax. On your Notice of Assessment, income tax and study loan repayments appear as distinct line items. If you owe both, you'll need to cover both.
• Plan for income growth: As a qualified tradesperson, your income may rise significantly after your apprenticeship. A $90,000 salary means a TSL repayment of $3,450/year — worth factoring into your budget when you complete your trade.

Curious how your income tax, Medicare Levy, and super contributions stack up alongside your TSL repayment? Use our Income Tax Calculator and Superannuation Calculator to build a complete picture of your finances.

Summary: TSL Repayments in FY 2025-26

• Trade Support Loans are income-contingent — repayments are automatic through the tax system
• The repayment threshold is $67,000 in FY 2025-26 (up from $54,435)
• Repayment rates: 15c per $1 over $67,000, rising to 17c over $125,000, then 10% of total income above $179,285
• Your TSL balance is indexed to CPI each 1 June — 3.2% in 2025
• The 20% HECS-HELP debt reduction (June 2025) did not apply to TSL balances
• Salary sacrifice does not reduce your TSL repayment income
• Voluntary repayments can be made anytime via MyGov → ATO Online Services

Use our free calculators to understand your full tax and financial position:

• HECS-HELP Calculator — estimate study loan repayments (same rates as TSL)
• Take-Home Pay Calculator — see your net pay after all deductions
• Income Tax Calculator — calculate your FY 2025-26 income tax
• Salary Sacrifice Calculator — model the tax savings from salary sacrificing into super
• Superannuation Calculator — project your super balance over time
• Medicare Levy Calculator — check your Medicare Levy and Surcharge obligations