Extending subsidies for apprentices and fee-free TAFE (March 2025 Federal Budget Update)

Published on 26 March 2025 by Drew Pflaum
Categories: Government Budgets

The Government will provide $722.8 million over four years from 2025–2026 to deliver increased support for apprentices. Funding includes:

• $626.9 million over four years from 2025–2026 to reframe the New Energy Apprenticeships Program as the Key Apprenticeship Program and expand it to capture critical residential construction occupations;
• $77.8 million over four years from 2025–2026 to extend the current interim Australian Apprenticeship Incentive System program settings for a further six months from 1 July 2025 to 31 December 2025;
• $11.0 million over four years from 2025–2026 to increase the Disability Australian Apprentice Wage Support subsidy; and
• $7.0 million over four years from 2025–2026 to increase the Living Away From Home Allowance.

As previously announced, the Government will also provide $253.7 million over two years from 2026–2027 (and an additional $1.4 billion from 2028–2029 to 2034–2035) to make Free TAFE a permanent program, funding at least 100,000 places annually from 1 January 2027. Legislation was introduced in November 2024 to give effect to this measure.

Free TAFE will prioritise cohorts that typically face barriers to education and employment.