These changes are designed to better target support towards apprentices, small to medium-sized businesses, and industries facing critical skills shortages. At the same time, they provide certainty for employers and apprentices already in the system.

What’s Changing From 1 January 2027

Several key updates will apply to new apprenticeship commencements from 2027.

Employer eligibility will tighten
Employers with 200 or more employees will no longer be eligible for employer incentive payments. The only exception is Group Training Organisations (GTOs), which will remain eligible regardless of size.

Key Apprenticeship Program (KAP) incentive adjustment
The maximum KAP employer incentive will reduce from up to $5,000 to up to $4,000. This will continue to be paid in two instalments during the first year of the apprenticeship.

Priority Hiring Incentive remains, with limits for large employers
The Priority Hiring Incentive will stay at up to $2,500, paid in two instalments in the first year. However, large employers (200+ employees), excluding GTOs, will no longer be eligible.

Changes to the Priority List
The way the Australian Apprenticeships Priority List is developed will shift to place greater emphasis on:

• national and regional skills shortages
• priority sectors such as construction, clean energy, manufacturing, and care and support
• roles that support participation by women and First Nations communities

What’s Staying the Same

While there are important updates ahead, several key elements will remain unchanged.

No impact on existing apprenticeships
Any apprenticeship that starts before 1 January 2027 will continue under the current rules. Incentives will stay locked in based on the arrangements in place at the time of commencement.

Ongoing support for apprentices
Apprentice incentives, support payments, loans, and disability supports will continue under existing settings.

Continued access for Group Training Organisations
GTOs will remain eligible for employer incentives regardless of their size.

What This Means for Employers

There is no immediate impact, giving employers time to plan ahead.

The changes provide:

• Certainty for current apprentices and employers
• Clearer direction for future workforce planning
• Stronger alignment between incentives and areas of genuine skills need

Support from Mas National

Mas National continues to support employers and apprentices through every stage of the apprenticeship journey.

Our team can:

• Guide you through incentive eligibility and changes
• Support apprentices and employers across the full lifecycle
• Help you plan future commencements with confidence

If you would like to discuss how these changes may apply to your organisation, please contact your local Mas National Apprenticeship Consultant at any time.