Financial support for hospitality apprentices and their employers has been cut in half, raising concerns about the long-term pipeline of chefs and kitchen professionals across Australia.
Under changes to the Australian Apprenticeship Priority List incentives from 1 January 2026, the Australian Apprentice Training Support Payment (AATSP) will reduce from a maximum of $5,000 to $2,500. The payment will be spread over the first two years of an apprenticeship and applies to priority hospitality qualifications including commercial cookery, patisserie, catering, Asian cookery, and kitchen management.
At the same time, the Priority Hiring Incentive available to employers of apprentices undertaking a Certificate III or above in a Priority List occupation will also fall from $5,000 to $2,500, paid in two instalments during the first year.
The reduction comes despite hospitality remaining on the Australian Apprenticeship Priority List, and at a time when cafés, restaurants, and pubs continue to report difficulty attracting and retaining skilled staff.
The Australian Restaurant & Cafe Association (ARCA) has warned the decision will have serious consequences for the sector.
Wes Lambert, CEO of ARCA, said the move would affect hospitality businesses already under significant pressure.
“It marks a serious blow to Australia’s already fragile hospitality workforce pipeline,” he wrote on social media.
“At a time when restaurants, cafés and pubs are battling chronic skills shortages, rising wage pressures, and declining training enrolments, removing support for apprentices doesn’t just hurt young people entering the industry — it puts the entire sector at risk.”
