Incentives for employers

The Key Apprenticeship Program (KAP) has been implemented with the goal of encouraging the growth of the workforce and expanding the pipeline of workers training towards critical occupations supporting priority sectors.

The KAP has two streams, New Energy Apprenticeship Stream (NEA) and Housing Construction Apprenticeship (HCA) Stream.

New Energy Apprenticeship (NEA) Stream
This stream supports employers in clean energy sector employers in developing renewable energy systems, generating and distributing clean energy, and transitioning from fossil fuels to zero/low-emissions technologies.

Housing Construction Apprenticeship (HCA) Stream
Supports residential construction employers working on houses, apartments, and nursing homes—including new builds, renovations, and structural repairs.

Employers of apprentices in Key Apprenticeship Program (KAP) occupations can receive up to $5,000 in the first year of an apprenticeship, paid over two instalments of:

• $2,000 at 6 months and $3,000 at 12 months (full- time)
• $1,000 at 6 months and $1,500 at 12 months (part-time)

To be eligible for the KAP Employer Incentive, the Australian Apprentice must:

• Meet primary eligibility (citizenship/residency, employment and training arrangements.
  Undertake a Certificate III, IV, Diploma or Advanced Diploma from the Australian Apprenticeships Priority List leading to a clean energy or housing construction pathway; and
• Be in-training with their employer on the claim period end date; and

The employer must:

• Provide a signed declaration demonstrating capacity to deliver meaningful work experience and training in clean energy or housing construction appropriate to the apprentice’s skill level; and
• Not be receiving Disability Australian Apprentice Wage Support, Priority Hiring Incentive, or other Australian Government assistance for the same apprenticeship; and

Where the employer is:

• Registered for Single Touch Payroll with the ATO or has ATO Exemption, and therefore wage evidence is available through Single Touch Payroll.

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.

The Priority Hiring Incentive aims to maintain strong Australian Apprenticeship commencement levels and improve retention rates in priority occupations experiencing national skill shortage. As an employer, you could be eligible for this incentive.

• $1,000 paid at 6 months from commencement or recommencement for full-time Australian Apprentices
• $1,500 paid at 12 months from commencement or recommencement for full-time Australian Apprentices
• $500 paid at 6 months from commencement or recommencement for part-time Australian Apprentices
• $750 paid at 12 months from commencement or recommencement for part-time Australian Apprentices

A total of up to $2,500 over 12 months, under an eligible Training Contract.

To be eligible for this incentive your Australian Apprentice will need to be;

• Commencing or recommencing a qualification and occupation listed on the Australian Apprenticeships Priority List; including those identified as leading to a clean energy apprenticeship pathway; and
• Must be in-training with their employer on the claim period end date; and
• Not be receiving Disability Australian Apprentice Wage Support, Priority Hiring Incentive, or other Australian Government assistance for the same apprenticeship; and

Where the employer is:

• Registered for Single Touch Payroll with the ATO or has ATO Exemption.

Your business will need to register for ADMS and use Single Touch Payroll for wage reporting to the Australian Tax Office, unless you have been granted an exemption. You will need to confirm that the Australian Apprentice was employed on the claim period end date through wage evidence. Click here to learn more about how to claim incentives via ADMS.

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.

The Australian Government provides additional support to Australian Apprentices with a disability through the Disabled Australian Apprentice Wage Support (DAAWS).

Disabled Australian Apprentice Wage Support (DAAWS) Payment:

• $216.07 per week wage support for a full-time Australian Apprentice paid to the employer (pro-rata for part-time)

DAAWS is payable to employers who employ Australian Apprentices who meet the eligibility criteria below;

• A medically diagnosed disability that affects them in their workplace and these affects can’t be managed with medication or self-management strategies;
• Has been assessed by a medical practitioner or registered psychologist and deemed capable to complete an Australian Apprenticeship if they are provided with suitable support from the employer;

NOTE: Employers that qualify for DAAWS may choose whether they wish to proceed with claiming DAAWS or instead claim the Priority Hiring Incentive. Tutorial Assistance, Mentor Assistance and Interpreter Assistance:

• Paid to the Registered Training Organisation (RTO) where the Australian Apprentice requires a Tutor, Mentor or Interpreter to assist with their off-the-job training.
• Employer must qualify for DAAWS for the RTO to be able to claim for Tutorial, Mentor and/or Interpreter Assistance Tutorial Assistance: Capped at $38.50 per hour (up to $5,500 per year).
• Mentor and/or Interpreter Assistance: Capped at $38.50 per hour (up to $5,500 per year).

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.

Funded Training:

• State Government may subsidise the cost of the training component delivered by RTOs. Amounts advised at application.

Payroll Tax Exemptions (Not available all states):

• Payroll Tax Exemptions may be available to employers who enrol their new staff into an Australian Apprenticeship. Contact your State Revenue Office for details.

Workcover Rebate / Exemption (Not available all states):

• Workcover Rebate may be available to employers who enrol their new and existing staff into an Australian Apprenticeship that is listed on the National Skills Needs List (NSNL). Contact your Workcover Insurer for details.

Australian Brick & Blocklaying Training Foundation (ABBTF):

• Contact ABBTF for claiming. $1,000 paid at 12, 24, and 36 month mark of Australian Apprenticeships for bricklaying or blocklaying Australian Apprentices.

GST does not apply to incentives paid to employers under the Australian Apprenticeships Incentive System. Further criteria and conditions apply for all incentives. This information is to be used as a guide only and is subject to change without notice. Information is current as of the 1st January 2025.

Our friendly Mas team are here to help you every step of the way. Simply get in contact with us and we will provide advice and guide you through the whole process.