TILA was developed in response to the Youth Pathways Action Plan Taskforce Footprints to the Future Report which emphasised the need to improve the provision of support services to young people as they make the transition to independent living. An element of one of the Taskforce's recommendations was a one-off payment to young people leaving care to help defray upfront costs associated with accessing employment, education or accommodation.

Providing the TILA (the Allowance) as part of a young person's transitional plan can help reduce their reliance upon crisis intervention and other community services at a later time. DEEWR administers TILA. In conjunction with other Australian and State and Territory Government support mechanisms, TILA helps young people who are leaving care to achieve independence and stability, and reach their full potential through enhanced engagement in employment, education, training and community life. TILA encourages a preventative and early intervention approach, which can help these young people avoid further welfare dependency and homelessness.

Southern Youth and Family Services (SYFS) is the sole National Service Provider of the TILA Allowance taking on the role in October 2007. SYFS is located in Wollongong, NSW a 90 minute drive south of Sydney via the Princes Highway (F6 Freeway).