A Guide to Financial Support for Apprentices in Australia (2026-27)
Starting an apprenticeship in Australia is a big step, and while the hands-on training and career opportunities are undoubtedly exciting, we know that money can sometimes be tight.
The good news is that there is plenty of financial apprenticeship support in Australia, anything from loans to living allowances to payment just for being in a priority trade.
If you’re just finishing school, in the middle of switching careers, or starting to learn a new trade, this guide will break down what type of help is available to you, plus how 1300apprentice can also support you along the way.
What is Apprenticeship Support in Australia?
Apprenticeship support refers to the variety of payments, government programmes, and services meant to help trainees and apprentices succeed. Their primary purpose is to provide practical tools and financial stability, so you can complete your qualification with ease.
More specifically, apprenticeship support covers things such as:
- Financial aid for apprentices and their employers
- Training and mentoring through Group Training Organisations
- Additional help for underrepresented groups (e.g. First Nations apprentices, women in trades, and mature-aged workers).
What Changed in 2026?
The incentive amounts below apply to eligible apprenticeships commencing or recommencing during 2026. Different incentive settings will apply to some apprenticeships commencing from 1 January 2027.
| Highlights | Details |
| Up to $10,000 in extra support for apprentices | Eligible full-time apprentices in housing construction and new energy occupations can receive up to $10,000 through the Key Apprenticeship Program. Payments of $2,000 are available at 6, 12, 24 and 36 months and on completion. Eligible part-time apprentices can receive up to $5,000. |
| Support for other priority apprenticeships continues in 2026 | For an eligible priority apprenticeship outside the Key Apprenticeship Program, a full-time apprentice may receive up to $2,500 and their employer may receive up to $2,500. A part-time apprentice may receive up to $1,250, and their employer may also receive up to $1,250. Under the Key Apprenticeship Program, eligible employers may receive up to $5,000 for a full-time apprentice or $2,500 for a part-time apprentice. |
| Higher Living Away From Home and disability support rates | From 1 July 2026, eligible apprentices can receive the Living Away From Home Allowance at $125.52 per week during their first 12 months, $94.14 per week during their second 12 months and $47.07 per week during their third 12 months. Eligible employers can receive Disability Australian Apprentice Wage Support of $226.01 per week for a full-time apprentice, with payments calculated proportionately for part-time apprentices. |
| Continued investment in TAFE Centres of Excellence | The Australian Government is investing up to $324 million over five years, with matched funding from states and territories, to establish 20 nationally networked TAFE Centres of Excellence. A further $41.2 million has been committed to fast-track their development and support higher and degree apprenticeships. |
Read more about the full budget details.
What is Coming in 2027?
The Australian Apprenticeships Incentive System will change again from 1 January 2027. These changes mainly affect employer incentives and which employers can claim them. Apprentices who start or restart their apprenticeship before 1 January 2027 will remain covered by the incentive settings that applied when they commenced.
| Change from 1 January 2027 | Details |
| Key Apprenticeship Program employer payment will reduce | From 1 January 2027, the Key Apprenticeship Program Employer Incentive will reduce from up to $5,000 to up to $4,000. It will continue to be paid in two instalments during the first year and will be available for eligible apprenticeships commencing until 30 June 2029. |
| Employer incentives will focus on smaller employers | Employers with 200 or more employees will no longer be eligible for the Key Apprenticeship Program Employer Incentive or the Priority Hiring Incentive. Group Training Organisations will remain eligible regardless of their size. |
| Priority Hiring Incentive will remain available | The Priority Hiring Incentive will remain at up to $2,500 and will continue to be paid in two instalments during the first year of an eligible apprenticeship. The new employer-size restriction will apply from 1 January 2027. |
| Apprentice payments will largely remain the same | Eligible apprentices will continue to receive up to $10,000 for a full-time apprenticeship or $5,000 for a part-time apprenticeship through the Key Apprenticeship Program. The Australian Apprentice Training Support Payment will also continue to provide eligible apprentices with up to $2,500 over the first two years of their apprenticeship until 30 June 2029. |
| The Priority List will be updated | From 1 January 2027, the Australian Apprenticeships Priority List will use national and regional shortage data and consider shortage ratings over a two-year period. It will also better align support with areas including construction, net zero, manufacturing, care and support, while continuing to recognise occupations that support women and First Nations communities. |
Who Is Eligible for Financial Support?
Eligibility depends on the type of support you are claiming. Programs such as the Australian Apprenticeship Support Loan, Australian Apprentice Training Support Payment and Key Apprenticeship Program generally require an eligible occupation and linked qualification on the Australian Apprenticeships Priority List.
Living Away From Home Allowance, Youth Allowance, Austudy, ABSTUDY and the Low Income Health Care Card have their own eligibility, income, residence and training requirements. Your Apprentice and Trainee Officer or Apprentice Connect Australia Provider can help you confirm which support applies to your circumstances.
Available Support for Apprentices
| Financial Support | Details |
| Australian Apprenticeship Support Loan | Eligible apprentices in priority occupations may access up to $27,048 over their apprenticeship in 2026-27, paid monthly in arrears. Compulsory repayments begin when repayment income exceeds $69,528. The loan is indexed annually at the lower of the Wage Price Index or Consumer Price Index, and apprentices who successfully complete their apprenticeship receive a 20% discount on the loan amount. |
| Australian Apprentice Training Support Payment | Up to $2,500 for an eligible full-time apprentice or $1,250 for a part-time apprentice who commenced or recommenced from 1 January 2026. Eligible apprentices who commenced or recommenced on or before 31 December 2025 may continue under the previous arrangement of up to $5,000 for full-time apprentices or $2,500 for part-time apprentices. |
| Key Apprenticeship Program | Up to $10,000 for full-time apprentices in clean energy and housing construction occupations. |
| Living Away From Home Allowance (LAFHA) | $125.52 per week in year one, $94.14 in year two and $47.07 in year three (rates from 1 July 2026). |
| Income Support Payments | ->Youth Allowance (if you’re 24 or under) -> Austudy (if you’re 25+) -> ABSTUDY (if you’re Aboriginal or Torres Strait Islander) |
| Low Income Health Care Card | Eligible people who meet the income and residence requirements may receive cheaper Pharmaceutical Benefits Scheme medicines and access to some health care and state or local concessions. |
Learn more about apprenticeship support in Australia.
State-Based Support
On top of the national programs, several states offer their own support:
- New South Wales: a $100 vehicle registration rebate for first and second year apprentices, and the Bert Evans Apprentice Scholarship worth $5,000 a year for up to three years for apprentices facing hardship.
- Western Australia: Construction Training Fund payments including an Apprentice Support Bonus of up to $3,000 and a tool allowance of up to $2,000.
- Other states and territories run their own travel, accommodation and tool subsidies. Check your state training authority or ask your Apprentice and Trainee Officer.
How to Apply for Apprenticeship Support
Applying for apprenticeships in Sydney or throughout Australia is mostly straightforward, however the steps taken will differ depending on what kind of financial support you’re after. Here’s a general guide:
- Contact an RTO: Start your apprenticeship with a Registered Training Organisation and employer (like those partnered with 1300apprentice).
- Speak to your Apprentice & Trainee Officer: The team at 1300apprentice can help walk you through your entitlements during induction.
- Apply where you’re eligible: Visit Services Australia to apply for Youth Allowance, Austudy, or ABSTUDY, or apply for Loans and Training Support Payments via your Australian Apprenticeship Support Network provider.
- Enquire with your employer: Ask your employer about LAFHA or check for other employer-based benefits.
Need additional help? Reach out to the team at 1300apprentice for guidance about apprenticeship programs or understanding school-based apprenticeships and traineeships. We also help employers find qualified apprentices.
FAQs
Do I Have to Pay Back the Apprenticeship Support Loan?
Yes, the Australian Apprenticeship Support Loan must be repaid once your repayment income exceeds the compulsory repayment threshold, which is $69,528 for 2026-27. The loan is indexed annually at the lower of the Wage Price Index or Consumer Price Index. If you successfully complete your apprenticeship, you receive a 20% discount on the amount you borrowed.
How Much Is the Apprentice Loan in 2026?
The Australian Apprenticeship Support Loan provides eligible apprentices with up to $27,048 over the life of their apprenticeship in 2026-27. Payments are made monthly in arrears. The program was previously known as the Trade Support Loans Program, which is why older information may refer to a $20,000 apprentice loan.
What Financial Support Can Mature Age Apprentices Get?
Mature-age apprentices may qualify for the same apprenticeship loans, incentive payments and allowances as younger apprentices when they meet the occupation, qualification and other eligibility requirements. Apprentices aged 25 or over who are undertaking a full-time Australian Apprenticeship may also qualify for Austudy, subject to income, assets and residence rules. An adult apprentice is generally someone who starts their apprenticeship at age 21 or older. Adult apprentices usually receive higher minimum pay than junior apprentices, although the applicable rate depends on the relevant award or enterprise agreement.
What is a priority occupation for Australian apprenticeships?
Priority occupations are trades and skills that are currently in demand across Australia. They are listed on the official Australian Apprenticeships Priority List, and being in one could make you eligible for extra support.
What help is available if I’m struggling with my TAFE or RTO studies?
If you’re having a hard time keeping up with off-the-job training, 1300apprentice can chat with your TAFE or RTO to organise extra support or walk you through resubmissions or assessments. Please speak to your Apprentice & Trainee Officer for assistance and support.
Ready to Start Your Apprenticeship Journey?
1300apprentice does more than match apprentices and trainees with host employers — we provide support throughout your apprenticeship journey through career advice, mentoring, and help navigating financial support options.
If you’re ready to launch your career and need help every step of the way, our team is ready to help.
