The Australian Government today announced it is extending its $5,000 financial incentive for employers who engage apprentices in the Key Apprenticeship Program (KAP), particularly in sectors of housing and new energy.
The extension will continue until 31st December 2026, following a strong uptake of the KAP since it commenced on 1 July this year.
Since July, KAP has seen more than 6,600 apprentices commence under the housing construction stream, and more than 15,400 new energy apprentices have started in KAP and the previous New Energy Apprenticeship Program.
Employers will continue to receive $5,000 for engaging apprentices in KAP priority occupations for another year, while apprentices will continue to receive $10,000.
Continued Support for Apprentices and Employers outside of KAP
From 1 January next year, new apprenticeships in priority occupations that are not eligible for KAP funding will continue to receive incentive payments of $5,000 per apprenticeship. This support will be shared equally – with $2,500 for the apprentice and $2,500 for the employer.
Incentive payments for apprenticeships that commence prior to 1 January 2026 won’t be affected by these changes.
Minister for Skills and Training, Andrew Giles, stated: “The Albanese Government recognises that employers play a key role in getting more apprentices into critical housing construction and clean energy jobs. This includes carpenters and joiners, plumbers and electricians.
“Changes to the incentive system have been carefully calibrated to target support towards housing and new energy occupations, ensuring a skills pipeline in these nation-building industries.
“The Government continues to provide a range of supports for apprentices because we acknowledge the importance of growing a skills-based workforce ready for the future.”
Talk to BUSY At Work – The Apprenticeship Community today for fast, local apprenticeship support to guide you through the changes. Call 13 28 79 or go to https://www.busyatwork.com.au/contact-us/