If you already employ apprentices — or have done so in the past — you’ll be familiar with the various Commonwealth apprenticeship incentives that have supported employers over recent years.
But from 1 January 2026, the Government is changing things slightly. It will have a stronger focus on priority occupations and completion outcomes.
The support isn’t disappearing, but how it works — and who qualifies — is shifting. For employers, this is an important moment to review your approach to apprenticeships and ensure you understand what the new scheme means for your business.
What the Government Has Changed
From 1 January 2026, the Australian Apprenticeships Incentive System will look different.
Existing incentives will continue for Apprenticeships/Traineeships that begin before that date under current rules, but new Apprenticeships/Traineeships will be supported under the updated model.
Under the updated system:
What Employers Should Pay Attention To
Rather than focusing on the detail of individual payments, employers should be aware of the key shifts in how incentives will operate.
1. Priority occupations matter more – Incentives will be strongly tied to occupations on the Australian Apprenticeship Priority List. Eligibility for employer incentives will depend on whether the apprenticeship sits within a priority occupation.
You can review the latest priority list here: Australian Apprenticeships Priority List – 1 January 2026
👉 What this means for employers
The types of roles you recruit for may directly determine the amount and type of incentive available.
2. Retention and completion are front of mind
The new model places greater emphasis on supporting Apprentices/Trainees through to completion, not just commencement.
👉 What this means for employers
You will need to think beyond onboarding and ensure supervision, performance management and support structures are in place for the long term.
These factors are key not only for workforce outcomes, but also for ensuring incentive eligibility and maximising benefit payments.
3. Incentives are more conditional — and timing matters
With a more targeted scheme comes tighter eligibility requirements and greater reliance on correct timing, documentation and compliance.
👉 What this means for employers
Missing a registration step, misunderstanding eligibility or failing to meet obligations could mean missing out on incentives altogether.
Also, understanding when an apprenticeship starts — and whether it qualifies under current or new rules — is vital.
What Employers Should Do Now
Here are suggested next steps to make sure you’re positioned to benefit from the updated incentives:
🗹 Check the Australian Apprenticeship Priority List to confirm whether roles you’re planning to recruit align with current priority occupations.
🗹 Review available guidance and factsheets on the Australian Apprenticeships website so you’re clear on eligibility criteria and documentation requirements.
🗹 Speak early with your Australian Apprenticeship Support Network provider to confirm eligibility, understand payment timing, and get support navigating the process.
🗹 Plan beyond recruitment by ensuring your supervision, training and support frameworks are set up to drive apprentice retention and successful completion.
Final Thought
The Government’s changes to Apprenticeship/Traineeship incentives signal a clear direction: quality, completion and capability matter more than volume.
For employers, this is an opportunity to take a more strategic approach to apprenticeships — aligning incentives with genuine workforce needs rather than relying on subsidies alone.
If you’d like help understanding how the new incentive scheme applies to your business — or reviewing apprentice employment arrangements from an HR and compliance perspective — the Aster HR team is here to help.
