The Federal Government has doubled support for apprentices working in construction under the new Key Apprenticeship Program (KAP).
The government will provide a $10,000 incentive payment – doubling the current level of support – to encourage Australians to train for jobs in this critical sector.
KAP will establish a Housing Construction Apprenticeship stream in response to the Strategic Review of the Australian Apprenticeship Incentive System.
The review released last week found cost-of-living pressures faced by apprentices are steering people away from taking up apprenticeships.
From 1 July 2025, eligible apprentices will receive $10,000 in incentive payments, on top of their wages, over the life of their apprenticeship to work in housing construction.
Apprentices will receive $2,000 at six, 12, 24, 36 months, and at the completion of their apprenticeship.
Prime Minister Anthony Albanese said encouraging more people into apprenticeships will ensure the Australian workforce can deliver on its ambitious target to deliver 1.2 million homes over the next five years.
“It builds on the Albanese Labor Government’s plan to support more students and trainees through expanding Free TAFE and slashing HECS fees for university students,” he said.
The Strategic Review of the Australian Apprenticeship Incentive System commenced in February 2024 and was led by Dr Iain Ross AO and Lisa Paul AO PSM.
The report has drawn on past reviews, research, and input from over 145 public submissions as well as consultations with more than 600 people from across the apprenticeship system.
The federal government is considering the Review’s findings and will consult stakeholders on longer-term reforms recommended by the Review to inform its response.
The government is also taking additional immediate steps to support the Review’s most urgent recommendations and address ongoing cost-of-living pressures while it undertakes consultation:
- 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.
- Increase the Living Away From Home Allowance from 1 July 2025 so apprentices can meet the costs associated with moving to take up an apprenticeship.
- Increase the Disability Australian Apprentice Wage Support payment from 1 July 2025 to support employers taking on apprentices with disability.
The program will allow eligible apprentices in construction occupations to receive an additional $5,000 compared to the Australian Apprenticeship Training Support Payment.
Housing Industry Association (HIA) has welcomed the release of the new data showing a steady uptake of incentives under KAP.
HIA managing director, Jocelyn Martin, said access to skilled labour is one of the most pressing issues facing the home building sector.
“It is one of the biggest operational issues holding the industry back from contributing to meeting the nation’s housing targets,” she said.
“A recent survey of HIA’s small business members indicated that the cost and access to skilled trades were both in the top five issues placing pressure on builders.”
Today’s KAP data demonstrates 85 per cent of apprentices are with small businesses.
“Demand for apprentices by small businesses is highly sensitive to price, which reinforces the view that we need to ensure there is adequate financial support,” Martin said.