Changes to the Australian Apprenticeships Incentive System from 1 January 2026

The Australian Government will continue to support apprenticeships as part of its broader plan to deliver a Future Made in Australia, meet net zero targets, and build 1.2 million homes by 2029. These initiatives aim to create jobs and support the skills needed for Australia’s future workforce.

 

Below is an overview of the incentives that will apply from January 1 2026:

Key Apprenticeship Program

• Full-time apprentice: $10,000*

• Full-time employer: $5,000*

*Part-time will receive 50% off the full-time rate

New Incentives for 2026

Key Apprenticeship Program Employer Incentive

A new payment will be introduced for employers of apprentices training in Key Apprenticeship Program occupations. This payment recognises the role employers play in developing the skilled workforce needed to meet clean energy and housing targets.

Eligibility

Employers of apprentices working in KAP occupations will receive up to $5,000, paid in two instalments during the first year of the apprenticeship.

Changes to existing payments

Australian Apprentice Training Support Payment (AATSP)

• Maximum full-time payment reduced from $5,000 to $2,500, paid over the first two years of an apprenticeship.* 
• For apprentices in an occupation and linked qualification on the Priority List. 

Priority Hiring Incentive

• Reduced full-time payment from $5,000 to $2,500, paid over the first two years of an apprenticeship. *
• For employers of apprentices training toward an occupation and linked qualification on the Priority List 

*Part-time will receive 50% of the full-time rate

No changes for apprentices who commence before 2026

Eligible Australian Apprentices and employers who commence an apprenticeship before 1 January 2026 will continue to receive the current rates of $5,000 for the Australian Apprentice Training Support Payment (AATSP) and $5,000 for the Priority Hiring Incentive.

Incentives continuing in 2026

Key Apprenticeship Program Apprentice Incentive

• Payments at 6, 12, 24, 36 months and on completion
• Full-time - $2,000, Part-time - $1,000

Living Away From Home Allowance (LAFHA)

• 1st Year: $120.00 per week, 2nd Year: $90.00 per week, 3rd Year: $45.00 per week 

Australian Apprenticeship Support Loans (AASL)

• Interest-free loan up to $25,983 (2025–26), paid monthly. 
• Repayments start when income exceeds $67,000. Indexation capped at the lower of WPI or CPI. 
• A 20 percent discount applies on completion.

Disability Australian Apprentice Wage Support (DAAWS)

• Weekly support payments of $216.07 for employers of Australian Apprentices with a disability. 

Get in touch today to find out more about eligibility for incentives and funding.