One of the first questions any employer asks before taking on an apprentice is: what's this actually going to cost me, and is there any help? The good news is that apprentices are paid at training rates well below a qualified tradesperson, and there's government support designed to make hiring them easier. The catch is that the numbers move around, so you need to know how the system works rather than relying on a figure someone quoted you two years ago.
This guide explains how apprentice wages are set, what allowances and on-costs to budget for, and how employer incentives and support fit together — all pitched at Australian employers. Because the exact rates and subsidy amounts change, it points you to the official sources and the in-app tools rather than quoting figures that go stale.
How apprentice wages are set
Apprentice pay isn't something you make up — it's set by the relevant modern award for the trade and industry. Apprentices are paid a percentage of the qualified tradesperson's rate, scaled by their stage. As they progress through the years of their apprenticeship (and in many trades, as they complete competencies), that percentage rises automatically.
There are also differences for adult and mature-age apprentices, who often attract higher minimum rates, and for school-based apprentices. To see indicative rates for a specific trade, stage and state, use the Wage Calculator. For the authoritative source, check the Fair Work Ombudsman at fairwork.gov.au and the specific award that covers your work.
Don't forget the on-costs
The award rate isn't the whole cost. Budget for the full picture:
- Superannuation guarantee — you must pay super on top of wages, at the current legislated rate
- Allowances — tool, travel, fares, first-aid and other allowances may apply under the award
- Overtime and penalty rates — where the award provides for them
- Workers compensation and payroll costs — the usual on-costs of any employee
- TAFE and training time — you generally release apprentices for their off-the-job training
Even with all of that, an apprentice costs well below a qualified tradesperson, and the value grows as they become productive. See Allowances and overtime explained and Superannuation for apprentices for how these work.
Government incentives and support
The Australian Government runs employer incentives to encourage apprenticeship take-up, and states and territories have their own support on top. These programs change regularly — amounts, eligibility, priority occupation lists and program names all shift with policy — so treat any figure you hear second-hand with caution.
Rather than quote numbers that will be wrong by the time you read this, here's how to get the current picture:
- apprenticeships.gov.au — the official Australian Apprenticeships site, with current employer incentives and eligibility
- Your Australian Apprenticeship Support Network (AASN) provider — they administer incentives and can tell you exactly what applies to your hire
- Your state or territory training authority — for state-specific subsidies, payroll tax concessions and support
Support is often higher for apprentices in priority occupations and skills-shortage trades, and for hiring certain cohorts. Don't let a subsidy drive the whole decision, but do factor it in.
Group Training Organisations as an alternative
If you're not confident you can guarantee continuous work, or you'd rather not carry the wages, super, paperwork and risk of a direct hire, a Group Training Organisation (GTO) is an option. The GTO employs the apprentice and hosts them out to you for a fee that bundles wages, super, allowances and admin into one hourly charge.
It costs more per hour than employing directly, but it shifts a lot of the risk and hassle off your plate — including managing an apprentice who isn't working out. See How Group Training Organisations work.
What the money buys you
It helps to think of apprentice wages as an investment, not just a cost. In year one you're paying for work that isn't yet fully productive, plus the time your tradies spend teaching. That flips over the apprenticeship: by the later years, a good apprentice is doing real, valuable work at a rate well below a qualified hand.
Get the selection and training right and you finish with a qualified tradesperson who knows your business, your systems and your clients — worth far more than the wages you paid along the way. That's why paying correctly and developing your apprentice well pays off. See What makes an apprentice worth keeping.
Get the basics right first
Whatever incentives you're chasing, the non-negotiable is paying the apprentice correctly under the award — the right rate for their stage, super, and any allowances they're entitled to. Underpayment is the single biggest risk here, and the Fair Work Ombudsman takes it seriously. It's also a fast way to lose a good apprentice, who talks to their mates and knows what they should be on.
Use the Wage Calculator as a starting point, confirm against the specific award at fairwork.gov.au, and keep good records. See What to do if you're being underpaid to understand the issue from the apprentice's side — and make sure you're never the employer it's about.
Stay current
The single most important takeaway is to check current figures at the source before you commit. Wages, super rates, allowances and incentives all move. A quick check of the Wage Calculator, fairwork.gov.au and apprenticeships.gov.au before you make an offer means no nasty surprises for you or the apprentice.
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Key takeaways
- Apprentice wages are set by the relevant modern award and rise with progression
- Budget for on-costs: super, allowances, overtime, workers comp and training time
- Government and state incentives exist but change often — check apprenticeships.gov.au and your AASN provider
- A Group Training Organisation can bundle wages and risk into one hourly fee
- Treat apprentice wages as an investment that pays off as they become productive
- Paying correctly under the award is non-negotiable — underpayment is a real risk
- Always confirm current figures at the source before making an offer