Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Hansard source

The government will not be able to support those Greens amendments. To raise the repayment threshold for the loans by 20 per cent would mean for 2014-15 that the repayment income threshold would be $64,014 instead of $53,345. The Trade Support Loans Program was aligned by the government with the Higher Education Loans Program to ensure consistency and to reduce confusion for individuals. The apprentice is not expected to repay their loan until they are receiving a sustainable income. The Trade Support Loans Program differs from HELP in that it is paid directly to the apprentice rather than to an education provider. This means the apprentice can spend loan payments at their discretion, to assist with everyday living costs during their apprenticeship with a view to them completing that apprenticeship and, of course, as indicated, if the apprentice successfully completes the apprenticeship, he or she would receive a 20 per cent discount in relation to the loan that is to be repaid.

We are not able to support the proposition that this should be doubled to 40 per cent, the same as we are not able to support the proposition that the repayment threshold for loans be increased by 20 per cent because it actually adds complexity and also would have a significant impact on expenditure. Obviously, we have properly calibrated this program to ensure that it is able to provide this important support to apprentices in a fiscally sustainable fashion, which is why we cannot support those amendments.

In relation to the comments on indexation, I have previously dealt with those matters.