Australia’s accommodation and hospitality sector is raising fresh concerns about the future of its workforce after the Federal Government announced this week that it will cut incentive payments for many apprenticeships, including chefs, from January 2026.
The announcement, made by Workplace Relations Minister Amanda Rishworth and Skills and Training Minister Andrew Giles, confirmed that while the Albanese Government is extending full financial incentives for apprentices in housing construction and clean energy, support for all other priority apprenticeships will be significantly reduced.
And for an industry already struggling with one of its most critical skills shortages, the timing has sparked immediate concern.
Accommodation Australia CEO James Goodwin said the change will hit hotels and resorts hard, particularly in regional areas where chef shortages are at crisis levels.
“The simple fact is we already don’t have enough chefs to fill demand as it is, particularly in regional areas,” Mr Goodwin said.
At present, a hospitality employer who hires an apprentice chef receives $5000 in the first year, while the apprentice receives $5000 over two years to assist with training and living costs.
Under the new structure, this support will fall to a total of $5000, with $2500 for the employer and $2500 for the apprentice.
James Goodwin, CEO Accommodation Australia
“This already falls well short of what is needed to train up a chef,” Mr Goodwin said.
“The proposed new incentive structure will see these payments halved.
“It couldn’t come at a worse time, with the number of chef apprentices already down 10 percent.”
A shortage that continues to grow
The shortage of qualified chefs has been escalating since the pandemic. Hotels, motels, resorts and holiday parks frequently report difficulty filling full time and part time kitchen roles. Many operators say the shortage has already forced them to reduce menus, limit service hours or close outlets during peak periods.
Operators warn that shrinking the incentive pool risks discouraging young people from choosing the chef pathway at a time when the industry is desperate to rebuild its workforce.
Goodwin said the cuts will compound the issue.
“The halving of the apprentice incentive will only make these figures more alarming, and the chef shortage more acute — especially in the regions.”
What stays the same?
The Government emphasised that apprenticeships commenced before January 1, 2026 will keep their current higher support payments.
Other support programs such as Free TAFE, the Living Away From Home Allowance, Australian Apprenticeship Support Loans and the Apprentice Connect Australia Providers will remain in place.
However, for hospitality employers the core incentive is the one that directly influences their ability to hire and train apprentice chefs.
Industry urges a rethink
Accommodation Australia said the sector needs more support, not less, to rebuild its skilled workforce. The association will continue engaging with government to highlight the effect the changes may have on regional and tourism dependent communities.
Operators across the country are watching closely as they prepare for the impact this shift may have on the next generation of chefs.
