Incentives for apprentices

The Key Apprenticeship Program (KAP) is a new initiative from the Australian Government designed to grow Australia’s workforce in critical Industries like clean energy and housing construction.

The KAP has two streams, New Energy Apprenticeship Stream (NEA) and Housing Construction Apprenticeship (HCA) Stream.

New Energy Apprenticeship (NEA)

Supporting the shift to clean energy careers, this stream covers apprentices involved in:

• Designing, developing, and maintaining renewable energy systems.
• Generating, storing, transmitting, and distributing clean energy.
• Replacing fossil fuels with zero or low-emissions technologies.

Housing Construction Apprenticeship (HCA)

Focused on building Australia’s future homes, this stream supports apprentices involved in:

• Residential building and construction.
• Renovations and structural repairs.
• Projects in houses, apartments and nursing homes.

The KAP does not supersede the New Energy Apprentice Support Payment (NEASP). From 1 July 2025, any Australian Apprentice receiving support through the NEASP will continue to have their remaining eligibility paid through the NEASP unless a reassessment is required. If you have any questions, please contact your local Mas Apprenticeship Consultant.   

Eligible Australian Apprentices can receive:

• Up to $10,000 for full-time apprenticeships (paid at 6, 12, 24, 36 months and on completion).
• Up to $5,000 for part-time apprenticeships (same payment milestones apply).

To be eligible for the KAP Apprentice Incentive, the Australian Apprentice must:

• Commence or recommence their apprenticeship on or after 1 July 2025; and
• Be enrolled in a Certificate III, IV, Diploma or Advanced Diploma in a clean energy or housing construction occupation listed on the Australian Apprenticeships Priority List; and
• Be hosted/employed by an organisation that provides meaningful experience in the relevant sector; and
• Cannot already be receiving the Australian Apprenticeship Training Support Payment funding for this same apprenticeship; and

Where the employer is:

• Registered for Single Touch Payroll with the ATO or has ATO Exemption, and therefore wage evidence is available through Single Touch Payroll.

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.

Australian Apprentices training in priority occupations can receive assistance of up to $2,500 to ensure they are supported to complete their training.

Full Time Australian Apprentice:

• $625 payable at 6, 12, 18 and 24 months.

Part Time Australian Apprentice:

• $315 payable at 6 months and 12 months.
• $310 payable at 18 months and 24 months.

Claims will appear in ADMS when they become due at the 6, 12, 18 & 24 month mark, and Australian Apprentices will have 12 calendar months to submit their claim forms via ADMS. As the Australian Apprentice Training Support Payment is considered a taxable income, you must provide information on your Tax File Number on the claim form.  Failure to provide this information will result in payments being taxed at the maximum rate of 47%.

To be eligible for the Australian Apprentice Training Support Payment, an Australian Apprentice must:

• Be an Australian citizen; or a foreign national with permanent residency; or a New Zealand passport holder with at least six months’ residence in Australia; and
• Be commencing or recommencing a Certificate III or IV, or a Diploma or Advanced Diploma from the Australian Apprenticeships Priority List; and
• Not be receiving the Key Apprenticeship Program Apprentice Incentive; and

Where the Employer is:

• Registered for Single Touch Payroll with the ATO or has ATO Exemption and therefore wage evidence is available through Single Touch Payroll. To claim this payment, the Australian Apprentice must access the ADMS System to lodge the claim within 12 months of the effect date.

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.

This is a loan to assist with the cost of living whilst undertaking an Australian Apprenticeship, and must be repaid. Repayments are made through the ATO and can be repaid once your annual income reaches the current Minimum Repayment Threshold, either via bulk payments or a percentage deducted each year when you lodge your tax return. Lifetime Limit applicable is $25,983.

• First year: Total up to $10,394, with monthly installments of $866.17
• Second year: Total up to $7,795, with monthly installments of $649.58
• Third year: Total up to $5,197 with monthly installments of $433.08
• Fourth year: Total up to $2,598, with monthly installments of $216.50

Eligibility criteria:  Where the Australian Apprentice commenced/recommenced their Australian Apprenticeship on/after 1 January 2026 and is undertaking:

• A qualification and occupation on the Australian Apprenticeships Priority List.

Where the Australian Apprentice commenced/recommenced their Australian Apprenticeship on/after 1 January 2026 and is undertaking:

• A qualification and occupation on the Australian Apprenticeships Priority List.

Living Away From Home Allowance (LAFHA):

• First year: $120.00 per week.
• Second year: $90.00 per week.
• Third year: $45.00 per week.

Youth Allowance Austudy and ABSTUDY:

• Australian Apprentices may be eligible to receive extra support from the Government, subject to the application of parental and personal income tests. Contact Services Australia on 13 36 33.

Funded Training:

• State Government may subsidise the cost of the training component delivered by Registered Training Organisations (RTOs). Contact your State Training Authority.

Travel and Accommodation Allowances (SA only):

• For those who travel more than 150km to attend courses in relation to their training program. Contact your State Training Authority on 1800 673 097.

Trade Apprentice Vehicle Discount (VIC only):

• 50% off car registration renewal. Contact VicRoads on 13 11 71.

Car Registration Rebate (NSW only):

• First, second and third year Australian Apprentices may be entitled to a Transport Concession Card.  Contact NSW Transport on 13 67 25.
• First and second year Australian Apprentices can receive a $100 rebate on their car registration. Contact NSW Government on 02 6841 4804.

Travel and Accommodation Allowances (TAS only):

• For those who travel more than 21kms each way to attend courses in relation to their training program. Click here for more information.

Travel and Accommodation Allowances (QLD only):

• For those who travel more than 50km to attend courses in relation to their training. Click here for more information.

Further criteria and conditions apply for all incentives. This information is to be used as a guide only and is subject to change without notice. Information is current as of the 1st July 2025.

Disability Australian Apprentice Wage Support (DAAWS):

• $216.07 per week wage support for a full-time Australian Apprentice paid to the employer (pro-rata for part-time).

Tutorial Assistance:

• $38.50 per hour, paid to the RTO (up to $5,500 per year).

Mentor and/or Interpreter Assistance:

• $38.50 per hour, paid to the RTO (up to $5,500 per year).

Employment Assistance Fund:

• Employers may be able to get financial help from the Australian Government for equipment, modifications and services to support their employees with disabilities. To connect with your local JobAccess provider, call 1800 464 800.

Further criteria and conditions apply for all incentives. This information is to be used as a guide only and is subject to change without notice. Information is current as of the 1st July 2025.