Extending subsidies for apprentices and fee-free TAFE

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.

Instant asset write-off extension: Bill still before Parliament

One of the Government’s key tax measures that is currently still outstanding is the proposed extension of the instant asset write-off measures for 2024–2025.

There is no mention in the Budget papers of the measure, though it is alluded to in couple of media releases. It can be assumed that the Government still intends to proceed with the measure as currently drafted.

By way of reminder, the measures will allow small businesses (with an aggregated turnover of less than $10 million) to:

  • deduct in full the cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use between 1 July 2024 and 30 June 2025;
  • deduct an amount included in the second element (cost addition) of eligible depreciating asset’s cost that they have incurred between 1 July 2024 and 30 June 2025, if they claimed an immediate deduction for the asset under the simplified depreciation rules in a prior income year where the amount is:
  • the first amount of second element cost incurred after the end of the income year in which the asset was written off; and
  • less than $20,000.

The proposed $20,000 threshold under the measures applies on a per asset basis, so small businesses can write-off multiple assets. Further, assets valued at $20,000 or more will continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that. In addition, pool balances under $20,000 at the end of 2024–2025 income year can be written off.

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