The Australian Government has announced changes to the apprenticeships system that started on 1 January 2026, introducing new incentives aimed at supporting employers and apprentices in priority trades, including refrigeration and air conditioning (RAC).

A key reform is the new Key Apprenticeship Program (KAP) Employer Incentive, which allows employers of apprentices in KAP occupations to claim up to $5,000. The payment will be made in two instalments during the apprentice’s first year, helping businesses offset early employment and training costs.

Existing incentives are also being adjusted. From 2026, the Australian Apprentice Training Support Payment (AATSP) will provide $2,500 for full-time apprentices in priority occupations, paid over the first two years. Employers hiring apprentices in these roles can also access the Priority Hiring Incentive, which offers a matching $2,500 for Certificate III or higher qualifications, excluding KAP occupations. Apprentices and employers who commenced before 1 January 2026 will retain the current $5,000 incentive rates under both schemes.

Support through Group Training Organisations will continue via the GTO Reimbursement Pilot Program, which allows small and medium enterprises to be reimbursed for apprentice placements. The pilot, which began on 1 January 2025, will close to new entrants on 30 April 2026 or once the 400-place cap is reached.

Several incentives will continue unchanged into 2026. Apprentices in KAP occupations can receive up to $10,000 in total support if full-time, or $5,000 if part-time, paid at key milestones and on completion. Additional assistance includes the Living Away From Home Allowance for apprentices required to relocate for training and access to the Australian Apprenticeship Support Loan, offering interest-free loans of up to $25,983 with repayments starting once income exceeds $67,000.

Employers hiring apprentices with disabilities can also continue to access Disability Australian Apprentice Wage Support, providing a weekly payment of $216.07.

Together, these changes aim to strengthen the apprenticeship pipeline across construction-related trades, supporting workforce growth while helping employers manage the cost of training skilled workers needed to meet future demand.