Incentive System changes include Key Apprenticeship Program launch

1 July, 2025

Updates to the Australian Apprenticeships Incentive System were announced today by the Department of Employment and Workplace Relations. These updates are designed to provide extra support for apprentices and their employers to help with cost-of-living pressures and to strengthen Australia’s skilled workforce.

Changes from 1 July include: 

  • Introduction of the Key Apprenticeship Program   
  • Increases to the Living Away From Home Allowance   
  • Increases to Disability Australian Apprentice Wage Support 

Key Apprenticeship Program

The Key Apprenticeship Program (KAP) has been implemented to expand the pipeline of workers training towards critical occupations in priority sectors.  

The KAP payment provides direct financial support to eligible apprentices in clean energy occupations or occupations supporting the housing and construction industry as identified on the Australian Apprenticeships Priority List.  

A full-time apprentice may claim up to a maximum of $10,000 over the life of the Australian Apprenticeship and a part-time apprentice up to $5,000.

Living Away From Home Allowance

From 1 July, the Living Away From Home Allowance (LAFHA) will increase to help apprentices and trainees manage costs associated with moving away from home for the first time to commence or remain in an apprenticeship or traineeship.

LAFHA payments will now be: 

  • $120.00 per week in the first year (previously $77.17) 
  • $90.00 per week in the second year (previously $38.59) 
  • $45.00 per week in the third year (previously $25.00) 

Disability Australian Apprentice Wage Support

From 1 July, employers hiring apprentices or trainees with disability will receive increased Disability Australian Apprentice Wage Support (DAAWS) payments.  

DAAWS will now be paid to employers at the rate of $216.07 per week in arrears for full-time apprentices or pro-rata for part-time apprentices. Previously the rate was $104.30 per week.

For further details please visit apprenticeships.gov.au or visit our Financial Support for Employers and Financial Support for Apprentices and Trainees web pages.