From January 1, 2026 to December 31, 2026, the Government will continue to offer strong support for apprenticeships in critical sectors through the Key Apprenticeship Program (KAP).
Under the program, each apprenticeship can receive up to $15,000 in total assistance:
- $5,000 for employers (Key Apprenticeship Program Employer Incentive)
- $10,000 for apprentices (Key Apprenticeship Program Apprentice Incentive).
To ensure fiscal responsibility while continuing to address workforce needs, incentives for other priority occupations will be adjusted during the same period:
- The incentive will decrease from $5,000 to $2,500 for employers (Priority Hiring Incentive)
- The maximum payment will reduce from $5,000 to $2,500 for apprentices (Australian Apprentice Training Support Payment)
Apprenticeships and traineeships in non-priority occupations are not eligible for Commonwealth financial incentives.
Grandfathering Arrangements
- Eligible Australian Apprentices and employers who commence an apprenticeship before 1 January 2026, will continue to receive the current rates $5,000 for AATSP and $5,000 for Priority Hiring Incentive.
Key points to note:
- These changes do not affect existing apprenticeships or traineeships—apprenticeships and traineeships remain eligible for the support offered at the time of sign up – grandfathering arrangements apply.
- The adjustments align with recommendations from the Strategic Review of the Incentive System.
- The approach supports the Government’s broader plan to deliver a Future Made in Australia, meet net zero targets, and build 1.2 million homes by 2029.
