Apprenticeships and traineeships

Building Australia's Future - Increased Support for Apprentices

The Government will provide $722.8 million over four years from 2025-26 to deliver increased support for apprentices. The funding includes:

• $626.9 million over four years from 2025-26 to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program and expand it to capture critical residential construction occupations. Through the new Housing Construction Apprenticeship stream of the Key Apprenticeship Program, the maximum incentive payments for eligible apprentices will increase from $5,000 to $10,000 from 1 July 2025. Apprentices will receive $2,000 at 6, 12, 24, 36 months, and at the completion of their apprenticeship (Budget paper no. 1: Budget strategy and outlook, p. 21; Media release 24 January 2025; Budget paper no. 2: Budget measures, pp. 12 and 41; Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 13).
• $77.8 million over four years from 2025-26 to extend the current interim Australian Apprenticeship Incentive System program settings for a further six months from 1 July 2025 to 31 December 2025 (Budget paper no. 2: Budget measures, pp. 12 and 41; Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 13).
• $11 million over four years from 2025-26 to increase the Disability Australian Apprentice Wage Support subsidy to $216.07 per week to support employers taking on apprentices with disability. Annual review checks for apprentices with permanent disability will also be removed to reduce administrative burden (Budget paper no. 2: Budget measures, pp. 12 and 41; Media release 24 January 2025; Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 14).
• $7 million over four years from 2025-26 to increase the Living Away From Home Allowance to $120 per week for first-year apprentices, $90 per week for second-year apprentices and $45 per week for third-year apprentices (Budget paper no. 2: Budget measures, pp. 12 and 41; Media release 24 January 2025; Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 14).

The package of reforms, announced 24 January 2025 as an initial response to the Strategic Review of the Australian Apprenticeship Incentive System, also includes six months of consultation to support the development of a new 'gateway model' for the incentive system, with costs met from within the existing resourcing of the Department of Employment and Workplace Relations (DEWR). In addition to this, the Government has increased the number of TAFE Centres of Excellence under the National Skills Agreement that are eligible to receive additional funding to fast track their establishment (Budget paper no. 2: Budget measures, pp. 12 and 41; Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 13).

Employment

National Careers Institute and Ambassador

Administered funding for the National Careers Institute (NCI) and Ambassador subprogram is scheduled to terminate in 2024-25. DEWR continues to have responsibility for national careers policy and advice (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 32).

Continuing programs

The annual administered expenses for the following continuing programs and initiatives in 2025-26 are:

• Pacific Australia Labour Mobility (PALM) - $5.906 million
• Transition to Work - $331.414 million
• The ParentsNext program concluded on 31 October 2024 and was replaced by Parent Pathways on 1 November 2024. Parent Pathways is allocated $98.529 million in 2025-26
• Local Jobs Program - $27.068 million
• Reconnection, Employment and Learning Program - $9.201 million (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 23-24).

For more information about these initiatives, see the VET Knowledge Bank Timeline of Australian VET policy initiatives 1998-2024.

Industry

National licensing scheme for electrical occupations

The Australian Government will work with state and territory governments, unions and employers to design a national licensing scheme for electrical occupations, aimed at reducing red tape, improving labour mobility for licensees, and ensuring safety and terms and conditions. The Treasury is leading the development and consultation of the national scheme. DEWR will support the Treasury by providing policy advice and insights into the mutual recognition schemes and other systems that connect with licensing, including apprenticeships and nationally recognised training (training packages) (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 14).

National Agreements

The Australian Government will provide funding of $2.7 billion (rounded) in 2025-26 to support state skills and workforce development services, including:

• $2.469 billion through the National Skills Agreement
• $202.3 million through other National Partnership payments (Budget paper no. 3: Federal financial relations, p. 50).

National Skills Agreement

The National Skills Agreement (NSA) commenced on 1 January 2024, replacing the National Agreement for Skills and Workforce Development. Funding for the NSA includes National Partnership Payments for seven Specific Policy Initiatives: Closing the Gap, Ensuring Access to Foundational Skills Training, TAFE Centres of Excellence, National TAFE Network, Measures to Strengthen the VET Workforce, and Enhanced VET Data and Evidence and Improved Completions - Especially for Priority Groups (Budget paper no. 3: Federal financial relations, p. 50).

The allocations to the states and territories for 2025-26 are: New South Wales $760.8 million, Victoria $625.8 million, Queensland $508.8 million, Western Australia $269.3 million, South Australia $170.7 million, Tasmania $54.4 million, Australian Capital Territory $47.7 million and Northern Territory $30.2 million (Budget paper no. 3: Federal financial relations, p. 50).

National Partnerships

The funding of $202.3 million provided through National Partnership payments in 2025-26 comprises:

• Fee-Free TAFE Skills Agreement - $166.1 million.
• The Australian Government is providing funding for the Fee-Free TAFE Skills Agreement, which commenced on 1 January 2023, for the delivery of fee-free TAFE and VET places to support training in areas of high demand and skills need. The Fee-Free TAFE Skills Agreement also includes funding for a TAFE Technology Fund to improve workshops, laboratories, and information technology (IT) facilities across the country.
• The allocations to the states and territories are: New South Wales $51.7 million, Victoria $42.9 million, Queensland $34.1 million, Western Australia $17.9 million, South Australia $11.4 million, Tasmania $3.6 million, Australian Capital Territory $2.9 million and Northern Territory $1.6 million (Budget paper no. 3: Federal financial relations, p. 51).
• Skilling the Clean Energy, Manufacturing and Construction Workforces - $22.5 million.
• This National Partnership combines the Capital and Equipment Investment Fund and Turbocharge the Teacher, Trainer and Assessor Workforce Agreements included in the 2024-25 budget (pp. 53 and 54). The Australian Government will provide $80 million over three years: $50 million for new and upgraded TAFE facilities to deliver cutting-edge training in clean energy qualifications and support more students to undertake this training, and $30 million to support existing initiatives and new measures that will rapidly upskill teachers, trainers and assessors.
• The allocations to the states and territories have not yet been determined (Budget paper no. 3: Federal financial relations, p. 52).
• Turbocharging TAFE Centres of Excellence - $13.8 million.
• The Australian Government is providing $31.6 million over three years to fast-track TAFE Centres of Excellence in addition to the $325 million provided under the five-year National Skills Agreement. This funding aims to support partnerships between TAFEs, Jobs and Skills Councils, industry and universities to establish TAFE Centres of Excellence; design and teach world leading curriculum, and provide students with cutting edge skills.
• The allocations to the states and territories are: New South Wales $1.8 million, Queensland $2.5 million, Western Australia $3 million, South Australia $1.8 million, Tasmania $0.3 million and Australian Capital Territory $1.9 million (Budget paper no. 3: Federal financial relations, p. 52).

Totals may be rounded and include unallocated funding.

Regulation

Addressing Integrity Risks

ASQA will receive $4.7 million in 2025-26 in additional temporary resourcing for urgent enforcement activity to counter fraud in the VET sector. This surge resourcing will support ASQA to undertake necessary compliance actions to address serious integrity issues which pose a risk to the community and to the reputation of Australia's VET sector (Budget paper no. 2: Budget measures, pp. 12 and 40).

ASQA's priorities for the year ahead

ASQA's priorities for the coming year focus on enhancing the VET sector's capacity to address Australia's skills needs amidst evolving economic and social challenges. Key priorities include:

• Implementing amendments to the NVR Act that give ASQA greater powers to protect vulnerable students, take action against non-genuine providers, and ensure suitability at market entry.
• Through its Integrity Unit, uplifting ASQA's investigation, enforcement and intelligence capability including multi-agency compliance operations.
• Collaborating with DEWR and stakeholders to prepare for the implementation of revised Standards for Registered Training Organisations (RTOs), including development of differentiated regulatory strategies, and guidance to enhance sector capacity for continuous quality improvement.
• Responding to government policy objectives for VET including supporting a more integrated approach between higher education, VET, and migration systems.
• Providing its workforce with the right tools including by progressively implementing digital enhancements to improve their regulatory capacity, service delivery and effectiveness (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 84).

ASQA's resourcing

ASQA estimates its total resourcing will be $77.728 million, which includes a departmental appropriation of $55.138 million for 2025-26 (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 86).

Training providers and programs

Building Skills and Capability expenses

Annual administered expenses estimated for 2025-26 under 'Sub-program 2.1.1 - Skills Development', 'Sub-program 2.1.2 - Access to Training' and 'Sub-program 2.1.3 - Support for the National Training System' include the following continuing programs and initiatives:

• Apprentice Connect Australia Providers - $214.353 million
• Australian Apprenticeships Incentives Program - $106.534 million
• Australian Apprenticeships Incentives System - $1031.318 million
• Trades Recognition Australia - $77.012 million
• Skills for Education and Employment - $159.165 million
• Remote Training Hubs Network - $5.858 million
• Building Women's Careers - $19.25 million
• Commonwealth Prac Payment - $10.881 million (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, pp. 31-32).

For more information about these initiatives, see the VET Knowledge Bank Timeline of Australian VET policy initiatives 1998-2024.

Sub-program 2.1.5 - National Skills Agreement (NSA) Commonwealth own-purpose expense (COPE) includes:

• Closing the Gap - $7.671 million
• Foundation Skills $16.017 million
• VET Workforce - $6.381 million
• Enhanced VET Data and Evidence - $9.018 million
• NSA Implementation - $2 million (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 32).

Nuclear-Powered Submarine Program - continuation of whole-of-government support

The Government will provide $61.7 million in 2025-26 to continue to provide regulatory, safety and policy advice in support of Australia's acquisition of a conventionally armed, nuclear powered submarine capability. DEWR will receive $1.9 million in 2025-26 to support the delivery of skills and training initiatives for the nuclear-powered submarine program under this measure (Budget paper no. 2: Budget measures, pp. 12 and 35-36).

Supporting Social Cohesion

The Government will provide $178.4 million over five years from 2024-25 (and $1.2 million per year ongoing) to support social cohesion in Australia. The funding includes $7.7 million in 2025-26 to extend the Economic Pathways to Refugee Integration program to boost refugee employment (Budget paper no. 2: Budget measures, pp. 12 and 61).

Supporting Transport Priorities

The Government will provide $49.6 million over five years from 2024-25 to support transport priorities. Funding includes $16.9 million over five years from 2024-25 to establish a maritime internship program to support seafarer certification and expand activities under the Transport and Logistics Jobs and Skills Council to support the Strategic Fleet and skills development in the maritime sector (Budget paper no. 2: Budget measures, pp. 12 and 69).

The lead entity for this measure is the Department of Infrastructure, Transport, Regional Development, Communications and the Arts. $1.8 million is allocated in 2025-26 (Portfolio budget statements 2025-26: Budget related paper no. 1.6: Employment and Workplace Relations portfolio, p. 19).