Hospitality takes hit as Government halves apprentice training incentives – hospitality

The Government will halve The Australian Apprentice Training Support Payment (AATSP) from $5,000 to $2,500 from 1 January 2026.

The changes will impact apprentices listed on the Australian Apprenticeship Priority List, including chefs, cooks, and bakers.

The Government will also reduce the full-time priority hiring incentive from $5,000 to $2,500, paid over the first two years of an apprenticeship. The payment is made to employers as an incentive to encourage hiring and retention.

Apprentices who fall under the Key Apprenticeship Program (KAP) will receive payments of up to $5,000 paid in two instalments during the first year of the apprenticeship. KAP apprentices include those working in housing construction and clean energy sectors. It does not include hospitality staff.

“Changes to the incentive system have been carefully calibrated to target support towards housing and new energy occupations, ensuring a skills pipeline in these nation-building industries,” said Minister for Skills and Training Andrew Giles.

The changes come as a blow for the hospitality industry, with Australia facing a signficant shortage of chefs.

There will be no changes for apprentices who commenced prior to 2026.

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