Release of the final report for the Strategic Review of the Australian Apprenticeship Incentive System.
The Australian Government has released the final report for the Strategic Review of the Australian Apprenticeship Incentive System (the Review).
The Review considered the effectiveness and efficiency of the current incentive system in supporting the uptake and completion of Australian apprenticeships as well as addressing Australia’s skills needs and its ability to deliver on economic priorities and social equity objectives.
The Review drew on an extensive evidence base, including past reviews, research, and input from over 145 public submissions as well as consultations with more than 600 people from across the apprenticeship system.
The central goal of the Review was to reduce skills shortages across the Australian economy. The final report makes 34 recommendations to improve the incentive system now and to meet workforce needs in the future through:
- supporting apprentices
- removing barriers to effectiveness
- rewarding success (not reinforcing failure)
- reframing the gateway to the incentive system
- supporting adult women into priority occupations.
As an initial response to the Review recommendations, the Government is making additional investments to:
- Maintain the 2025 Priority List and extend current Australian Apprentice Training Support and Priority Hiring Incentive payment settings by six months until 31 December 2025. This will provide consistency for employers and cost-of-living relief to apprentices in priority occupations during the consultation process.
- Increase the Living Away From Home Allowance from 1 July 2025 so apprentices can meet the costs associated with moving to take up an apprenticeship.
- Increase the Disability Australian Apprentice Wage Support payment from 1 July 2025 to support employers taking on apprentices with disability. Annual review checks for apprentices with permanent disability will also be removed to reduce administrative burden.
- Introduce a new Key Apprenticeship Program with a Housing Construction Apprenticeship stream to help achieve Australia's housing commitments until 30 June 2029. This will also help with cost of living pressures by providing eligible apprentices in high priority construction occupations with up to $10,000 during their apprenticeship.
- The Government also introduced a new program on 1 January 2025 providing small and medium businesses with access to subsidised Group Training Organisation (GTO) fees for up to 400 apprentice places, including a 20 per cent target for apprentice women.
These initial investments will respond to the most urgent recommendations of the Review, including ongoing cost-of-living pressures, while Government carefully considers longer-term reforms and consults further with stakeholders.
A responsive system will encourage commencement and completion of apprenticeships and provide quality employment and training in safe and respectful workplaces.
More information
- Read the Prime Minister’s media release
- Read the Report and fact sheets
- Read the Terms of Reference
- Read the FAQs