Starting 1 July 2025, the Australian Government is introducing enhanced support for apprentices and their employers. These measures aim to ease cost-of-living pressures and help build a stronger, more skilled workforce.
Key Apprenticeship Program (KAP)
The Key Apprenticeship Program (KAP) is designed to expand Australia’s pipeline of skilled workers in critical occupations across priority sectors. From 1 July 2025, KAP will be available to new or recommencing Australian Apprentices.
KAP includes two targeted streams:
- New Energy Apprenticeship (NEA): Offers direct financial support to apprentices training for careers in the clean energy sector, encouraging both commencements and completions.
- Housing Construction Apprenticeship (HCA): Aims to boost the number of apprentices entering and completing training in housing and construction.
Financial Support:
Eligible Australian Apprentices can receive up to:
- $10,000 for full-time apprentices
- $5,000 for part-time apprentices
Payments will be made according to the following schedule:
- Full-time: $2,000 at 6, 12, 24, and 36 months, and on completion
- Part-time: $1,000 at the same intervals
Learn more about the Key Apprenticeship Program (KAP)
View the full list of eligible occupations (PDF)
Extension of Support Payments
The following support payments have been extended until 31 December 2025:
- Australian Apprentice Training Support Payment (AATSP)
- Priority Hiring Incentive (PHI)
These extensions offer continued stability for employers and financial relief for apprentices working in priority occupations, while longer-term reforms are under development.
Increased Living Away From Home Allowance (LAFHA)
To assist apprentices who relocate for work, LAFHA rates will increase from 1 July 2025:
- 1st Year: from $77.17 to $120.00 per week
- 2nd Year: from $38.59 to $90.00 per week
- 3rd Year: from $25.00 to $45.00 per week
Rates will be adjusted annually based on the March quarter CPI, as published by the Australian Bureau of Statistics.
Boosted Support for Apprentices with Disability (DAAWS)
Employers hiring apprentices with disability will benefit from increased weekly support under the Disability Australian Apprentice Wage Support (DAAWS), rising from $104.30 to $216.07 per week starting 1 July 2025.
Like LAFHA, DAAWS rates will be updated annually in line with the March quarter CPI.
Learn more about the latest incentives for Australian Apprentices.
