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Priority Hiring Incentive Payment Extended

HVIA members are reminded that the Australian Government’s 2025 Priority List and Australian Apprentice Training Support and Priority Hiring Incentive Payment has been extended by six months until December 31, 2025.

This will provide consistency for employers and cost-of-living relief to apprentices in priority occupations during the consultation process for the Strategic Review of the Australian Apprenticeship Incentive System.

The Priority Hiring Incentive is a payment for employers of apprentices training towards an occupation and qualification at a Certificate level III or above listed on the Australian Apprenticeship Priority List. These include trades of relevance to HVIA members including automotive electricians, electric vehicle technicians, diesel technicians, mechanical engineering technicians, metal fabricators and machinists, welders, sheet metal workers, and vehicle body builders, painters and trimmers.

Employers may be eligible to receive a Priority Hiring Incentive of up to $5,000 in the first year of an apprenticeship, paid over two instalments of: $2,000 at six months and $3,000 at 12 months (full- time); or $1,000 at six months and $1,500 at 12 months (part-time).

The incentive is only available if employers are not currently receiving the Priority Wage Subsidy or Disability Australian Apprentice Wage Support for the same apprentice.

The Government also introduced a new program on January 1, 2025 providing small- and medium-sized businesses with access to subsidised Group Training Organisation (GTO) fees for up to 400 apprentice places, including a 20 per cent target for apprentice women.

Other additional incentives introduced as party of the Government’s initial response to the review include:

  • Increasing the Living Away From Home Allowance from July 1, 2025 so apprentices can meet the costs associated with moving to take up an apprenticeship.
  • Increasing the Disability Australian Apprentice Wage Support payment from July 1, 2025 to support employers taking on apprentices with disability. Annual review checks for apprentices with permanent disability will also be removed to reduce administrative burden.
  • Introducing a new Key Apprenticeship Program with a Housing Construction Apprenticeship stream to help achieve Australia’s housing commitments until June 30, 2029. This will also help with cost of living pressures by providing eligible apprentices in high priority construction occupations with up to $10,000 during their apprenticeship.

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