Home topics news via pexels News News Government slashes support for chefs, mechanics and hairdressers from January Yajush Gupta December 16, 2025 Small businesses are sounding the alarm as apprenticeship incentives get slashed in half from January, according to COSBOA Chair Matthew Addison. What’s happening : The Federal Government will halve apprenticeship incentive payments from January 2026 for most priority occupations, except housing construction and clean energy trades. Why this matters : Small businesses depend on apprenticeships to build their workforce but already face low completion rates and critical skills shortages. The Council of Small Business Organisations Australia warns these sudden cuts will discourage employers from taking on apprentices at peak hiring season, threatening Australia’s long-term skills pipeline. Small business groups are calling for the Federal Government to reverse its decision to slash apprenticeship funding across multiple sectors, warning the cuts will discourage employers from hiring apprentices during Australia’s ongoing skills crisis . From 1 January 2026, enhanced financial incentives will continue only for apprentices in the Key Apprenticeship Program sectors of housing construction and clean energy. All other priority occupations will see support for both apprentices and employers halved, announced on 1 December. COSBOA Chair Matthew Addison criticised the sudden policy shift. “Small businesses rely on apprenticeships to build capability, bring new entrants into their industries and maintain a skilled workforce,” Mr Addison said. “Halving incentives with just four weeks’ notice will discourage employers from taking on apprentices at a time when many are already struggling to find staff.