Cost-of-living support was among the major highlights of the 2025-26 Federal Budget. Additionally, this Budget provides a further investment of over $734 million over the forward estimates to the Skills and Training portfolio, building on the suite of reforms for apprentices, as well as addressing urgent and unavoidable matters across the Vocational Education and Training (VET) system.
There are several key initiatives aimed at supporting vocational education and training (VET):
- An investment will be made to establish 100,000 permanent free TAFE places every year from January 1, 2027, subject to the passage of legislation.
- From July 1, 2025, eligible apprentices in housing construction occupations will receive up to $10,000 in financial incentives over the course of their apprenticeships.
- Employers of apprentices in priority occupations may also be eligible for up to $5,000 as a Priority Hiring Incentive, which includes many occupations relevant to housing construction.
- Current incentives scheme has been extended to the end of 2025.
- $626.9 million to expand the New Energy Apprenticeships Program into the Key Apprenticeship Program, including critical construction roles.
- $77.8m to extend current interim apprenticeship incentive settings for a further six months.
- $11m to boost the Disability Australian Apprentice Wage Support subsidy. Employers hiring apprentices with disability will receive increased support payments from $104.30 to $216.07 per week from 1 July 2025.
- $7m to expand the Living Away From Home Allowance. This will help apprentices meet the costs associated with moving to take up an apprenticeship. To reflect the true value of the incentive payment, it will be indexed in July each year,
o 1st Year from $77.17 to $120.00 per week
o 2nd Year from $38.59 to $90.00 per week
o 3rd Year from $25.00 to $45.00 per week
The Government is also funding skills support aligned with broader national priorities:
- $2.5m for the Jobs and Skills Councils under Industry Skills Australia to build the maritime workforce in response to the Strategic Fleet Taskforce.
- $16.9m to support maritime industry skills and training.
- Work underway on a national occupational licensing scheme for electrical trades to support workforce mobility in housing and net zero sectors
ASA is the only Apprentice Connect Provider across WA offering specialist services supporting women in male-dominated trades, First Nations Australian apprentices and apprentices in clean energy occupations, in addition to generalist services.
We look forward to continuing to empower both businesses and apprentices to grow and thrive.
