If you ask most trade business owners whether the industry needs more apprentices, you'll usually get a quick yes. But ask whether or not they're taking on an apprentice in the near future and the response will often be less certain.
The skills shortage is a real issue, and training your own tradies can seem like the obvious fix. That's until you consider the costs, which include four years of award wages, superannuation, time off site for TAFE or block courses and a senior tradie whose hours will be split between the job and the person learning it.
The best way to deal with the apprentice dilemma is to put real numbers on it. Once you know what an apprentice costs under current award rates, which government incentives can offset it and how long a first-year takes to start paying their way, the decision can become a lot clearer.
This guide covers the latest skills shortage data for Australia and New Zealand, current wage and incentive settings, a simple test for whether your business is ready and practical ways to ensure a new apprentice becomes productive more quickly.
The Trades Skills Shortage in 2026
Shortages have eased slightly since their post-pandemic peak, but trades are still the most challenging roles to fill. Jobs and Skills Australia's 2025 Occupation Shortage List found 29% of occupations in shortage nationally, down from 36% in 2023, while nearly half of trade roles were still in shortage.
Construction, electrical and plumbing roles were named as persistently difficult to fill, and a lack of qualified applicants was the main reason.
The work certainly isn't drying up. Infrastructure Australia's 2025 Infrastructure Market Capacity Report estimated a shortfall of 141,000 workers on public infrastructure in late 2025, with the gap forecast to peak above 300,000 by mid-2027. Trades workers and labourers make up a large part of that, with their own shortfall projected to reach 126,000.
Regional areas are expected to be hit the hardest, which is especially tricky for trade businesses already competing with major projects for staff.
New Zealand is at a different point in the building cycle, but the training pipeline has the same problem. Ministry of Education data shows apprentice numbers fell 14% in 2025 to 59,720, and total workplace-based learners dropped to their lowest level since 2011.
Construction accounts for nearly half of all NZ apprentices, and the fall in new starts has coincided with building activity starting to pick up again.
For a trade business owner, this cuts both ways. Every apprentice you train is one less tradie you'll need to find in a tight labour market. But the same market also makes experienced supervisors harder to find and a newly qualified tradie easier to poach, so the decision needs significant planning.
What an Apprentice Really Costs in 2026
Award wages from 1 July 2026
In Australia, apprentice wages are set as a percentage of the qualified tradesperson rate and they increase each year. For building and construction trades, the Building and Construction General On-site Award (MA000020) sets the minimums.
Fair Work's award summary, effective 1 July 2026 puts the starting rates for a four-year apprentice who completed Year 12 at the following:
| Stage | Minimum hourly rate | Minimum weekly rate |
|---|---|---|
| 1st year (completed Year 12) | From $17.61 | From $669.23 |
| 2nd year (completed Year 12) | From $20.56 | From $781.14 |
| 3rd year | From $23.50 | From $893.05 |
| 4th year | From $27.92 | From $1,060.91 |
| Adult apprentice (21+), all years | From $28.08 | From $1,067.22 |
| Qualified tradesperson (CW/ECW 3) | From $32.48 | From $1,196.14 |
These minimums include applicable industry and tool allowances. The exact rate depends on the classification, whether the apprentice finished Year 12 and whether they're an adult apprentice who is paid a higher flat rate from day one.
Electrical and plumbing apprentices are covered by different awards with their own rates, so check the Fair Work pay guide for your trade before you set a wage.
In New Zealand, apprentices must be paid at least the training minimum wage, which rose to $19.16 an hour on 1 April 2026, or 80% of the adult minimum wage.
On-costs beyond the hourly rate
Wages are only the first issue. Employers pay superannuation at the 12% super guarantee rate, and from 1 July 2026, Payday Super means contributions have to be paid each payday instead of quarterly. It's crucial to plan for this if you're used to a quarterly cash flow buffer.
On top of that are workers' compensation premiums, training fees where they apply, PPE and a starter tool kit, plus the vehicle and fuel costs of getting an apprentice to and from site.
Supervision and the productivity gap
The biggest cost usually doesn't show up on the payslip. A first-year apprentice isn't usually billable at anything close to a tradesperson's rate, and the senior tradie supervising them gives up some of their own output to teaching, checking work and fixing mistakes.
Most business owners find the situation improves from around 12 to 18 months, once an apprentice can handle routine tasks with less oversight. Until then, it's important to budget for a net cost and price your jobs with that in mind.
Completion risk
Not everyone finishes their apprenticeship. NCVER's Apprentice and trainee completion rates 2025 report, released in July 2026, found 63.4% of people who started a trade apprenticeship in 2019 had completed it within six years. For construction trades workers, the figure was 59.4%.
Trade completion rates have improved for every commencing cohort since 2015, which is encouraging. But it still means around four in 10 construction apprentices don't finish, so retention needs to be part of the plan from day one.
Government Incentives and Support in 2026
Both governments still help with the cost of hiring an apprentice, but the Australian settings changed on 1 January 2026, so advice from a year or two ago is likely out of date.
The Australian Apprenticeships Incentive System
From 1 January 2026, the Australian Apprentice Training Support Payment and the Priority Hiring Incentive were each cut from $5,000 to $2,500, paid over the first two years. Both apply to apprentices in occupations on the Australian Apprenticeships Priority List, and part-time apprentices attract 50% of the full-time amount.
Apprenticeships that started before 1 January 2026 keep the original $5,000 rates.
The Key Apprenticeship Program is the bigger opportunity for businesses in housing construction and new energy. The federal government extended its $5,000 employer incentive until December 2026, paid in two installments during the first year. Eligible apprentices can also receive up to $10,000 themselves, paid in $2,000 installments as they progress and on completion.
It's a good idea to mention that apprentice payment when you're recruiting, because it makes the early years of training easier to afford for the person you're trying to hire.
Eligibility depends on the occupation, and the Priority List is reviewed regularly, so talk to an Australian Apprenticeship Support Network provider before you count an incentive into your budget.
New Zealand's Apprenticeship Boost
In New Zealand, Apprenticeship Boost pays eligible employers $500 a month (plus GST if registered) per apprentice for up to 12 months. The apprentice needs to be employed by you, less than 12 months into their apprenticeship and enrolled in a TEC-approved qualification.
Applications need to go in within 20 days of the apprentice starting training and employment, or you risk missing payments, so add it to your onboarding checklist. Programme settings can change with government policy, so check the Work and Income page before you hire.
When Does an Apprentice Make Financial Sense?
There's no single right answer to whether taking on an apprentice is worth the cost, but it's helpful to ask yourself the questions below. If you can answer yes to most of them, an apprentice is likely to pay off over the four-year term.
But if your pipeline is patchy or supervision is thin, consider waiting, or look at a group training organisation, which employs the apprentice and places them with host businesses so you carry less of the risk.
Do you have the work?
An apprentice needs a steady flow of jobs to learn from. If you have something close to 12 to 18 months of forward work booked, or a reliable stream of repeat clients, an apprentice will spend their time on the tools instead of waiting between jobs while still drawing a wage.
Accurate job costing helps here, because it shows which jobs carry enough margin to absorb some training time. Our article on popular job costing strategies covers how to track it.
Do you have someone to supervise?
Your best tradie isn't automatically your best teacher. Look for someone with the patience to explain why a job is done a certain way, and make sure their own workload leaves them time to do it.
Can you carry the first-year cost?
Work out what the first 12 months will cost in wages, on-costs and lost productivity, then subtract any incentives you're eligible for. If your cash flow can carry that gap without strain, you're in a good position.
Will they have a reason to stay?
The worst outcome is training someone for four years and losing them the week they complete their apprenticeship. A clear pay progression, a path to leading hand or supervisor roles and regular feedback all make it more likely they'll stay.
How to Make the First 18 Months Work
Once you've decided to go ahead, a few habits make the difference between a stressful first year and a productive one.
Map out what the apprentice should be able to do at three, six and 12 months, and check in against it. Tie those milestones to their TAFE or polytech units, safety competencies and specific site tasks they can now handle on their own, so progress is visible to both of you.
Pair them deliberately. Rotating an apprentice across different jobs builds breadth, but one consistent mentor gives them someone accountable for their progress.
Hire for attitude as much as aptitude. Some of the best apprentices are career changers or school leavers who'd never considered a trade. Our article on the unlikely places you can find your ideal trade staff has a few ideas worth trying.
Finally, look at how much of your business lives in one person's head. The faster a new starter can learn your systems, the sooner they contribute beyond the tools.
How Digital Estimating Tools Shorten the Learning Curve
Bringing an apprentice or junior team member into the quoting side of the business is a big step in their development, and it's often where training stalls.
It can take months for a new employee to learn a custom spreadsheet built years ago that's full of hidden formulas and shortcuts only the owner understands. Our comparison of spreadsheets vs estimating software looks at why that setup gets harder to manage as a business grows.
A standardised, cloud-based takeoff and estimating platform like Groundplan is far easier to teach. Measurements, pricing and quote templates live in one consistent system, so a new team member can learn the workflow once and start contributing to takeoffs and quotes much sooner.
Count Assist uses AI to recognise and count symbols on a plan, so an apprentice can check counts against the drawing instead of tallying every fitting by hand, and learn to read plans properly along the way. Our training and support resources also help new users get up to speed without the business owner teaching every step.
Standardising estimating is one of the most effective ways to scale a trade business by plugging profit leaks, and it gives your next hire, apprentice or otherwise, a business they can learn quickly.
Build a Business an Apprentice Can Grow Into
The apprentice dilemma comes down to timing and preparation. The 2026 award rates and on-costs tell you what the first year will cost, and incentives like the Key Apprenticeship Program or Apprenticeship Boost can take some of the pressure off, particularly if you move before the current settings change.
Your pipeline, supervision capacity and cash flow tell you whether now is the right time. Once you commit, structured training and simple systems decide how quickly an apprentice starts adding value.
The trade businesses that get the most from apprentices are usually the ones already running on clear, repeatable processes. If you want to build that kind of business, start a free 7-day trial of Groundplan, no credit card needed, and see how much easier estimating is to teach when it all lives in one place.
Frequently Asked Questions
How much does it cost to hire an apprentice in Australia in 2026?
Under the Building and Construction General On-site Award, minimum rates from 1 July 2026 start at about $17.61 an hour for a first-year apprentice who completed Year 12 and rise to about $27.92 an hour in fourth year. Add 12% superannuation, workers' compensation, training and tool costs, and the time a senior tradie spends supervising, especially in the first year.
What apprentice incentives are available in Australia in 2026?
Employers may be eligible for $2,500 through the Australian Apprentice Training Support Payment or the Priority Hiring Incentive for Priority List occupations, or up to $5,000 through the Key Apprenticeship Program for housing construction and new energy apprentices until December 2026. Eligibility depends on the occupation, so check with an Australian Apprenticeship Support Network provider.
Is Apprenticeship Boost still available in New Zealand?
Yes. Eligible employers can receive $500 a month per apprentice for up to 12 months, as long as the apprentice is less than 12 months into a TEC-approved apprenticeship. Apply within 20 days of the apprentice starting.
How long does it take an apprentice to become productive?
Most trade business owners see a noticeable shift between 12 and 18 months, once an apprentice can handle routine tasks with less supervision. The first year is usually a net cost to the business.
How many construction apprentices finish their apprenticeship?
NCVER's 2025 data shows 59.4% of construction trades apprentices who started in 2019 had completed within six years. Clear career pathways, fair pay progression and good mentoring improve the odds of keeping yours.
