Changes to Australian Apprenticeship Incentives from 1 January 2026
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Explore Potential is writing to share an important update regarding changes to the Australian Apprenticeships Incentive System, recently announced by the Commonwealth Government.
What’s changing
For the period 1 January 2026 to 31 December 2026, the Government will maintain strong support for apprenticeships in critical sectors through the Key Apprenticeship Program (KAP). Eligible commencements may receive up to $15,000 in total support per apprenticeship, made up of:
- $5,000 for employers (Key Apprenticeship Program Employer Incentive), and
- $10,000 for apprentices (Key Apprenticeship Program Apprentice Incentive). (ministers.dewr.gov.au)
Incentives for other priority occupations outside of KAP will be adjusted for the same period to:
- $2,500 for employers (Priority Hiring Incentive), and
- $2,500 for apprentices (Australian Apprentice Training Support Payment). (apprenticeships.gov.au)
As is currently the case, apprenticeships and traineeships in non-priority occupations are not eligible for Commonwealth financial incentives. (apprenticeships.gov.au)
Key points to note
- Existing apprenticeships/traineeships are not affected — “grandfathering” arrangements apply, meaning they remain eligible for the support available at the time of sign-up. (apprenticeships.gov.au)
- The changes align with recommendations arising from the Strategic Review of the Incentive System. (ministers.dewr.gov.au)
- The Government has linked the approach to broader national priorities, including a “Future Made in Australia”, net zero targets, and the Housing Accord target of 1.2 million homes by 2029. (ministers.dewr.gov.au)
Where to find more information
Further details are available via the Australian Apprenticeships website, including program information and updates. (apprenticeships.gov.au)