Important changes to apprenticeship incentives from 1 July 2025

Key Apprenticeship Program (KAP)

The new Key Apprenticeship Program (KAP) provides financial support to eligible Australian Apprentices who commence or recommence from 1 July 2025 in priority new energy and housing construction occupations. 

To be eligible: 

• The apprenticeship must be linked to a qualification on the Australian Apprenticeship Priority List 
• The employer must be able to provide meaningful exposure, work and experience in the new energy or housing construction sectors

Disability Australian Apprentice Wage Support (DAAWS) 

Support for employers who hire apprentices living with disability is also increasing. 

• Weekly support will rise from $104.30 to $216.07

To keep up with cost-of-living changes, Disability Australian Apprentice Wage Support will be indexed annually on 1 July, in line with the March quarter Consumer Price Index (CPI).

Living Away From Home Allowance (LAFHA)

The Living Away From Home Allowance supports eligible apprentices who need to move out of home to take up or stay in an apprenticeship, or who are homeless. 

From 1 July 2025, the allowance will increase to: 

• 1st Year: $120 per week (up from $77.17) 
• 2nd Year: $90 per week (up from $38.59) 
• 3rd Year: $45 per week (up from $25.00) 

This payment will also be indexed annually on 1 July in line with CPI.

Australian Apprenticeship Support Loans (AASL)

Apprentices in occupations on the Australian Apprenticeship Priority List can access the Australian Apprenticeship Support Loan.

From 2025–26: 

• The lifetime loan limit will increase to $25,983
• Apprentices will not need to start repayments until they are earning over $56,156 (for 2025-26)
• Apprentices who complete their qualification will receive a 20% discount on their loan amount

To maintain the real value of the loan, loan values will be indexed annually in line with the Consumer Price Index.

Learn more about available incentives and funding for employers and apprentices: