The Albanese Labor Government is extending its $5,000 financial incentive for employers who engage apprentices in the Key Apprenticeship Program (KAP) sectors of housing and new energy.
The decision to extend the payments to December 2026 follows strong uptake of the KAP since it commenced on 1 July this year.
KAP, an expansion of the successful New Energy Apprenticeship Program (NEAP), has seen more than 6,600 apprentices commencing under the housing construction stream, while more than 15,400 new energy apprentices have started training under the NEAP and KAP.
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.
The changes to the incentive payments follow recommendations from the Strategic Review of the Incentive System and support the Albanese Government's broader plan to meet net zero targets and to build 1.2 million homes by 2029.
From 1 January next year, new apprenticeships in priority occupations that are not eligible for KAP funding will 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.
This payment is among a suite of government support measures for apprentices, including:
- Australian Apprenticeship Support Loans of up to $25,983 (2025-26) to help with the costs of undertaking an apprenticeship in priority occupations
- The Living Away From Home Allowance to help those who need to move away from home to take up an apprenticeship opportunity.
Other supports available for apprenticeships include the Apprentice Connect Australia Providers for advice and assistance accessing services, Free TAFE and the Building Women's Careers Program.
The Australian Skills Guarantee Procurement Connected Policy is also creating more employment opportunities for apprentices and trainees by including national targets for apprentices as a requirement for Commonwealth infrastructure and ICT projects.
Quotes attributable to Minister for Skills and Training, Andrew Giles:
"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."
Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth:
"The Albanese Government is supporting apprentices in priority occupations who are literally building Australia's future.
"Alongside our other supports for apprentices, including Free TAFE and Australian Apprenticeship Support Loans, these incentives support a continued strong pipeline of skilled workers in the areas they are most needed, like housing and new energy."
