The Department of Employment and Workplace Relations has released the final report of the Strategic Review of the Australian Apprenticeship Incentive System.
The report makes 34 recommendations to support high-quality apprenticeships and enhance the efficiency of the Australian Apprenticeship Incentive System.
These recommendations have included actions aimed at addressing issues including:
o cost-of-living pressures for apprentices
o the ability of the Incentive System to target areas of the greatest skill need
o perceptions and understanding of apprenticeships as a career pathway
o workplace culture issues that lead to apprentice attrition
The following is some of the recommendations relevant to employers:
- Align incentives to the Government’s economic priorities and social equity objectives. Direct payments to SMEs.
- Reward employers who are providing an appropriate working environment for their apprentices.
- Support the use of Group Training Organisations to assist SMEs in taking on new apprentices.
- Utilise the Australian Government’s procurement policies to increase engagement of 1st and 2nd year apprentices.
- Review the apprentice data systems to make them easier for apprentices, employers and other users to use and navigate.
Changes to current financial support and incentives:
- Maintain the 2025 Priority List and extend current Australian Apprentice Training Support and Priority Hiring Incentive payment settings by six months until 31 December 2025. This will provide consistency for employers and cost of living relief to apprentices in priority occupations during the consultation process.
- Increase the Living Away From Home Allowance rate by $56.88 per week for first year apprentices, $28.44 per week for second year apprentices and $18.43 per week for third year apprentices
- Increase the Disability Australian Apprentice Wage Support payment payment rates to $216.07 per week from 1 July 2025
Key Apprenticeship Program
The Government has also proposed to establish the Key Apprenticeship Program, which would allow eligible apprentices to receive $10,000 in incentive payments, on top of their wages, over the life of their apprenticeship to work in housing construction, from July 1, 2025.
Under this program, apprentices would receive $2,000 at six, 12, 24, 36 months, and at the completion of their apprenticeship.
If you have questions about your eligibility for financial incentives or hiring an apprentice, contact us on 1300 363 831/ (08) 9365 7400 or email us at [email protected].
