MEDIA RELEASE
2 December 2025
Apprentice employers disappointed at cuts to incentive payments
The largest network of apprentice employers has welcomed the federal government’s continuation of financial incentives for key housing and clean energy apprentices but is disappointed at cuts to incentive payments across other areas of industry.
The National Apprentice Employment Network (NAEN) said that the continuation of the $5,000 financial incentive for employers who engage apprentices in the Key Apprenticeship Program sectors of housing and new energy was very welcome.
However, the halving of financial incentives to both employers and apprentices in sectors not eligible for KAP funding is extremely disappointing. From 1 January, new apprenticeships in these priority occupations will attract $5,000 per apprenticeship, shared equally between the apprentice and the employer, down from $10,000 currently.
The Chief Executive Officer of NAEN, Dianne Dayhew, said the cut will severely impact employers and prospective apprentice numbers in what are considered priority occupations, including the care sector, motor trades, tourism and hospitality.
“We welcome the maintenance of financial supports for the housing and clean energy sectors, but these are not the only areas where financial assistance is needed to meet skills shortages and drive the take-up of apprenticeships and traineeships.
“We are also disappointed with the timing of this announcement – coming at the height of the recruitment period for apprentices and with just weeks until it takes effect. It fails to recognise the time needed to plan and manage for what is an extremely busy time of year for apprenticeships,” Ms Dayhew said.
Ms Dayhew said that NAEN was also looking forward to the federal government’s formal response to the Strategic Review of the Australian Apprenticeship Incentive System, undertaken by Dr Iain Ross and Ms Lisa Paul, and released in January.
The report made 34 recommendations to address a wide range of issues across the apprenticeship system – many centring on better utilisation of GTOs, due to their superior completion rates.
“We took part in extensive consultations on the Strategic Review, as well as its findings, and anticipated the government’s response by the end of the year. We hope that this will be addressed promptly in 2026 so that progress can be made on this landmark report,” Ms Dayhew said.
Media Contact: Bob Bowden, Ph 0412 753 298 bbowden@bowmac.com.au