The state’s peak business body has welcomed the Albanese Government’s decision to extend apprenticeship and trainee incentives, calling it a major win for industries battling critical skills shortages.

Daniel Hunter, CEO of Business NSW, said: “This is fantastic news. Our members tell us financial support really matters: two in three say extra funding helps them attract and support apprentices, while 56% say boosting support directly to apprentices improves recruitment and retention.”

Mr Hunter said extending support until January 2027 gives employers the confidence to take on apprentices, particularly in construction and energy – sectors desperate for skilled workers.

“With $5,000 for employers and $10,000 for apprentices, this is a real, tangible investment in Australia’s future workforce,” he said.

The Key Apprenticeship Program (KAP) extension gives certainty to employers and apprentices in housing construction and renewable energy projects, helping tackle urgent workforce gaps.

However, Mr Hunter cautioned many industries could be left short-changed. 

“Cutting incentives to $2,500 for apprentices and employers on the Australian Apprenticeship Priority List – and continuing to exclude those outside it – risks hurting sectors like hospitality, retail, and tourism,” he said.

“Every employer who takes on an apprentice is investing in Australia’s workforce. Support must be meaningful and accessible across all industries.”

Business NSW says the extension is a big win for construction and energy, provides apprentices with security, and helps fill urgent skills gaps – but other sectors must not be left behind.


About Business NSW

Formerly the NSW Business Chamber, Business NSW is the peak policy and advocacy body which has been representing businesses in NSW since 1826. We represent almost 50,000 businesses.

MEDIA CONTACT: BEN PIKE – 0429 993 822