Apprenticeship incentives for energy and housing construction employers have been extended until 2026, effectively supporting industry in these areas, but reduced support for other sectors risks worsening Australia’s already declining apprentice workforce.
The Federal Government announcement stipulated employers engaging apprentices under the Key Apprenticeship Program (KAP) in housing and new energy will continue receiving $5,000 until December 2026.
According to Government, there has been a “strong uptake of the KAP” since it began on July 1 this year, with more than 6,600 apprentices nationally starting their training under the housing construction stream, while over 15,400 new energy apprentices began under the New Energy Apprenticeship Program (NEAP) and KAP.
Employers and apprentices will retain access to the current incentive levels in these sectors, with apprentices continuing to receive $10,000.
However, from January 1, 2026, apprenticeships in priority occupations outside KAP will receive reduced payments of $5,000 per apprenticeship, split equally between the apprentice and employer.
Future talent pipeline at risk
CCIWA Head of Policy Dr Anthea Wesley said the extension was positive news for employers in the energy and housing industries.
“Employers who take on apprentices also take on the risk associated with that. They need certainty for their workforce going forward, and this decision provides that,” she said.
“Providing incentives for both employers and apprentices has proven to be extremely effective in shoring up the skilled workforce across a whole range of different industries.”
However, Wesley said reducing support for employers outside construction and energy risked discouraging businesses from taking on new apprentices, limiting the talent pipeline in sectors already facing skills shortages.
The concern comes amid a broader decline in apprentice numbers.
Over the past three years, there have been 90,000 fewer apprentices and trainees in the national system. In addition, Apprenticeship Support Australia saw an 18% decline in school-based traineeships from FY2024 to FY2025.
CCIWA has called for stronger backing for school-based apprenticeships and traineeships.
“To create jobs for young people and ensure our economy has the skills it needs, it’s absolutely vital that it becomes more viable for employers to take on apprenticeships,” Wesley said.
“Employer incentives work, and while the focus on energy and construction is welcomed, there needs to be an acknowledgement across all sectors that we need a strong pipeline of workers and opportunities for young people.”
Govt: Supporting apprentices ‘building Australia’s future’
The Federal Government said the changes support its broader plan to meet net-zero targets and build 1.2 million homes by 2029.
“Changes to the incentive system have been carefully calibrated to target support towards housing and new energy occupations, ensuring a skills pipeline in these nation-building industries,” said Federal Skills and Training Minister Andrew Giles.
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