Apprenticeship Wage Subsidies for Australian Tradies (2026)
The Australian government will pay you to hire an apprentice. Over a 4-year trade apprenticeship, the combined federal and state subsidies can exceed $15,000–$20,000. Most employers don't claim all of it — not because they're ineligible, but because they don't know the programs exist or don't contact the right people at the right time. This is the guide to what's available and how to actually claim it.
By Benjy @ Tradie Scaler
What's Available — Quick Summary
Up to $8,000 over the apprenticeship for priority trades. Paid in instalments.
Additional payments for trades on the skills shortage list. Amount varies.
Additional payment when apprentice completes the qualification.
QLD, NSW, VIC all have additional employer incentives on top of federal. Can add $2,000–$8,000.
Free government-funded service to help you navigate all programs and claim correctly.
The 3 Things You Must Do to Claim All Available Subsidies
Australian Apprenticeships Incentives Program (AAIP)
The Australian Apprenticeships Incentives Program (AAIP) is the federal government's primary mechanism for incentivising employers to take on apprentices in trade and vocational qualifications. The program provides wage contributions — not grants, but actual payments toward the cost of employing the apprentice — paid over the course of the apprenticeship.
The incentives are means-tested and trade-specific. Priority trades — those identified as having national skills shortages — attract higher incentives than non-priority qualifications. Historically, electrical, plumbing, carpentry, refrigeration and air-conditioning, bricklaying, and tiling have been priority trades. The list is updated periodically by the Department of Employment and Workplace Relations (DEWR).
The key structure of AAIP payments: an initial commencement incentive when the training contract is registered; progress payments at set milestones during the apprenticeship (typically 12-month intervals); and a completion incentive when the apprentice completes the qualification. Each payment requires the employer to submit a claim — they are not automatically paid.
The most common employer error: failing to submit instalment claims on time. If you don't claim by the deadline for each instalment, that payment is forfeited. This is where AASN providers earn their keep — a good AASN will send you reminders and help you submit claims at each milestone.
Who Gets the Highest Subsidies
- Priority trade apprenticeships (electrician, plumber, carpenter etc.)
- Apprentices who are school-based or recent school leavers
- Apprentices in regional and remote Australia (additional supplements)
- Mature-age apprentices (some additional supplements)
- Indigenous Australian apprentices (additional support available)
Common Reasons Employers Miss Payments
- Missed instalment claim deadline
- Training contract not registered through AASN
- Apprentice changes qualification — eligibility may change
- Employer changes — need to notify AASN
State Government Supplements — On Top of Federal
Queensland runs state-specific apprenticeship incentives through the Department of Employment, Small Business and Training. QLD incentives have historically targeted priority trades and regional employers, with additional supplements for regional Queensland businesses taking on apprentices in identified skill shortage areas. Contact your AASN provider or visit the Queensland Government's apprenticeship incentives page for current rates — programs change with state budgets.
NSW has the Smart and Skilled program which subsidises the cost of vocational education for eligible students, including apprentices. This doesn't directly pay employers, but reduces the cost of TAFE/RTO fees for the apprenticeship. NSW also runs targeted employer incentive programs through the Department of Education and TAFE NSW. Your AASN can advise on current NSW-specific employer payments.
Victoria has the Free TAFE initiative which covers apprenticeship training costs for eligible qualifications — this directly reduces the cost to the employer for training fees. Victoria also has employer incentive payments for priority qualifications through Skills Victoria. The combination of Free TAFE and employer incentives can be particularly valuable in Victoria.
South Australia, Western Australia, Tasmania, ACT, and the Northern Territory all have some form of apprenticeship support programs, though the scale and structure varies significantly. WA has historically had strong incentives for resource and construction sector apprentices given the state's skills demands. The Northern Territory has the most generous support programs as a proportion of employer cost, reflecting the challenges of training in remote areas.
For any state: the right starting point is an AASN provider in your state. They know the current programs, eligibility requirements, and application process better than any website (including this one — programs change more frequently than we can update). The AASN service is free.
How to Claim All Available Subsidies
| Program | Provided By | Approx. Amount | How Paid | Key Condition |
|---|---|---|---|---|
| AAIP (Federal) | Federal Govt | Up to $8,000 | Instalments over apprenticeship | Priority trade, AASN registration |
| Priority Trade Supplement | Federal Govt | Varies by trade | Additional to AAIP | Trade must be on priority list |
| QLD State Incentives | QLD Govt | $2,000–$5,000+ | Varies | QLD employer, eligible trade |
| NSW Smart and Skilled | NSW Govt | Training fee subsidies | Reduced RTO fees | NSW employer and apprentice |
| VIC Free TAFE | VIC Govt | Training fee waiver | No TAFE fees for eligible quals | VIC employer and eligible qual |
Amounts are approximate and change with government budgets. Verify current rates with your AASN provider.
Hired your apprentice? Now sort out payroll.
Apprentice wages are award-rate dependent and increase annually as they progress through their trade. Get payroll software that handles award rates automatically — Employment Hero and KeyPay both manage this well.
Employment Hero vs KeyPay →Frequently Asked Questions
Under the AAIP, employers in priority trades can access up to $8,000 in wage subsidies plus completion bonuses. With state government supplements (QLD, NSW, VIC all have additional programs), the total subsidy over a 4-year apprenticeship can exceed $15,000–$20,000. The exact amount depends on the trade, the apprentice's circumstances, and your state. Contact an AASN provider — the service is free — for a number specific to your situation.
The AAIP is the federal government's primary employer incentive framework for hiring apprentices. It provides wage contributions, priority trade supplements for trades with skills shortages, and completion bonuses. Incentives are paid in instalments at set milestones — you must submit a claim at each milestone to receive payment. Check the DEWR website or contact an AASN provider for current rates.
Australian Apprenticeship Support Networks (AASNs) are government-funded organisations that help employers and apprentices navigate the apprenticeship system. They're free for employers. An AASN will help you register the training contract, identify all eligible subsidies, assist with paperwork, and remind you of claim milestones. Contact an AASN before you hire your apprentice — not after — to ensure you register correctly and don't miss eligibility windows.
Priority trades are updated periodically and have historically included: electricians, plumbers, carpenters, joiners, bricklayers, wall and floor tilers, refrigeration and air-conditioning mechanics, and other construction trades. The list changes — check with your AASN provider for the current priority trade list. Being on the priority list significantly increases the subsidies available, so it's worth verifying before you assume your trade qualifies.