2025-26 Federal Budget Update - Supporting apprentices in priority occupations and in priority cohorts

As part of the federal budget, the Government has committed $722.8 million in funding to implement the recommendations of the Review. 

Starting 1 July 2025, eligible apprentices working in housing construction will receive $10,000 in incentive payments throughout the course of their apprenticeship. Apprentices will receive $2,000 at the 6-month, 12-month, 24-month, and 36-month milestones and again upon completing their apprenticeship. 

The Government is also taking additional steps to support the most urgent recommendations from the Review and address ongoing cost-of-living pressures. This includes: 

• Extending the current Australian Apprentice Training Support and Priority Hiring Incentive payment settings by six months, until 31 December 2025, to maintain the 2025 Priority List. This extension will offer employers stability and cost-of-living relief for apprentices in priority occupations during the consultation process. 
• Increasing the Living Away From Home Allowance starting 1 July 2025, to help apprentices cover the costs of relocating for an apprenticeship. The allowance will be indexed annually each July to maintain its value: 
  • 1st Year: Increased from $77.17 to $120.00 per week 
  • 2nd Year: Increased from $38.59 to $90.00 per week 
  • 3rd Year: Increased from $25.00 to $45.00 per week 
• Increasing the Disability Australian Apprentice Wage Support payment starting 1 July 2025, to provide additional support for employers hiring apprentices with disabilities. Employers will receive an increased support payment of $216.07 per week for apprentices with disabilities.

In response, the Coalition Government has announced a plan to provide small and medium businesses with $12,000 to support hiring a new apprentice or trainee in priority occupations areas.  

We will continue to share the latest news for apprentices and employers and provide updates as they become available. To learn more about how Apprenticeship Support Australia can assist you and your business, please contact us.