The federal government has improved funding support for apprentices in 2026 with a range of incentives available for occupations in high demand such as Refrigeration and Air Conditioning (RAC).
For example, the Key Apprenticeship Program (KAP), which provides employers of apprentices working in KAP occupations with $5,000, has been extended in 2026.
The KAP is paid in two instalments during the first year of the apprenticeship.
The Minister for Skills & Training, Andrew Giles, said the decision to extend the payments to December 2026 follows strong uptake of the KAP since it commenced on July 1, 2025.
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.
From January 1, 2026, 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.
This payment is among a suite of government support measures for apprentices, including the Building Women’s Careers Program.
Other programs continuing in 2026 include the Australian Apprentice Training Support Payment (AATSP) which provides up to $5,000 in payable instalments every six months over the first two years (and upon completion).
It applies to new or recommencing apprentices starting from July 1, 2024.
The Priority Hiring Incentive offers employers a matching $2,500 for apprentices working towards a Certificate III or above.
The Group Training Organisation (GTO) Reimbursement Pilot Program commenced on January 1, 2025, and is for small to medium enterprises (SMEs).
The Pilot will close to new entrants on April 30, 2026 or once it reaches 400 caps, whichever occurs first.
Apprentices who move away from their home for training can utilise the Living Away From Home Allowance (LAHFA) while the Australian Apprenticeship Support Loan (AASL) provides interest-free loans up to $25,983. Repayments start once annual income exceeds $67,000 (2025-26 threshold).
Finally, employers of apprentices with a disability can access the Disability Australian Apprentice Wage Support (DAAWS). This provides a weekly support payment of $216.07.
It has also been three years since the introduction of Free TAFE supporting over 725,000 enrolments across the country.
The program has reached more than 210,000 course completions, with this number set to climb as more students head towards the finish line of their course, including many students who are studying part-time alongside work and family responsibilities.