Changes to the Australian Apprenticeships Incentive System from 1 January 2026 

From 1 January 2026 to 31 December 2026, changes to the Australian Apprenticeships Incentive System will come into place for eligible apprentices and their employers, as a part of the Governments Future Made in Australia initiatives, prioritising meeting net-zero targets, and building 1.2 million homes by 2029. 

New Key Apprenticeship Program Employer Incentive

As announced by the Australian Government, a Key Apprenticeship Program Employer Incentive will be introduced for employers training in Key Apprenticeship Program (KAP) occupations.

Employers and apprentices commencing from 1 January 2026 

Employers of apprentices in Key Apprenticeship Program (KAP) occupations can receive up to $5,000 in incentive payments, paid in two instalments during the first year of the apprenticeship.  

Employers and apprentices commencing prior to 1 January 2026 

Eligible Australian Apprentices and employers who commence an apprenticeship before 1 January 2026, will continue to receive the current rates $5,000 for Australian Apprentice Training Support Payment (AATSP) and $5,000 for Priority Hiring Incentive – no changes will come into effect. 

Changes to Existing Incentive Systems 

Australian Apprentice Training Support Payment (AATSP) 

The maximum payment will be reduced from $5,000 to $2,500, paid over the first two years of an apprenticeship. 

Priority Hiring Incentive  

The incentive will decrease from $5,000 to $2,500 paid in two instalments during the first year of the apprenticeship. 

Group Training Organisation Reimbursement Pilot Program 

The Pilot will close to new applications on 30 April 2026 or once the 400 reimbursed placements are filled nationally, whichever occurs first. 

Unaffected Incentive Systems 

• Key Apprenticeship Program Apprentice Incentive 
• Living Away From Home Allowance (LAFHA) 
• Australian Apprenticeship Support Loans (AASL) 
• Disability Australian Apprentice Wage Support (DAAWS) 
• DAAWS Off-the-job Tutorial, Mentor, and Interpreter Assistance 

To learn more about eligibility for incentives and funding, please contact our team on 1300 012 476.

For more information, head to apprenticeships.gov.au.

About Australian Apprenticeship Support Services

Bamara is a First Nations Specialist Provider of Australian Apprenticeship Support Services, a free service which we deliver across New South Wales.

If you’re a First Nations apprentice/trainee or an employer, we will support you to get the most out of an Australian Apprenticeship.