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The federal government is providing an additional $265.1 million over four years in financial support for apprentices and their employers.

Under the Australian Apprenticeships Incentive System apprentices and employers in priority occupations will receive an extra $2,000 and $1,000 respectively.

Under the revised system, from 1 July 2024 employers taking on apprentices training in priority occupations will be eligible to receive an additional $1,000 ($5,000 in total) in incentive payments, to help subsidise costs associated with employing an apprentice.

Further, apprentices undertaking training in priority occupations will be eligible to receive an additional $2,000 ($5,000 in total) in incentive payments, to assist with cost-of-living pressures and support them to finish their training.

Apprentice payments will be restructured to be frontloaded, with apprentices receiving $3,500 in the first year and $1,500 in the second year.

This will provide more assistance to apprentices when they need it most. Employers can receive up to $5,000 in the first year. Payments will be paid over two instalments, with $2,000 at six months and $3,000 at 12 months.

The government has also promised 20,000 new fee-free TAFE places.

The Independent Tertiary Education Council Australia (ITECA) welcomed the additional funding.

ITECA chief executive, Troy Williams, said this support for apprentices and trainees throughout their studies has merit.

ITECA also noted that the Australian Government has a Strategic Review of the Australian Apprenticeship Incentive System underway that will investigate the support available to help more people start and complete apprenticeships and traineeships.

“ITECA looks forwards to ensuring that our members’ views are taken into account as this review makes its recommendations to the Australian Government,” Williams said.