Addressing the chef shortage

The Australian Hotels Association and Accommodation Australia have really hit the ground running in 2026—we are now in the process of finalising pre-budget submissions, which will be handed down in May.

Of course, one of our key priorities will be the chronic shortage of skilled workers affecting the hospitality sector, including the need for apprentice incentives.

The latest print edition of AccomNews is out now. Read it HERE

As many of you are all too aware, Australia’s hospitality industry is experiencing a critical shortage of chefs. Seek currently lists 5246 chef vacancies and 4824 cook vacancies.

Many establishments rely on temporary skilled migrants to simply maintain kitchen operations. However, continued dependence on skilled migration is not a sustainable or complete solution in and of itself—especially given the current political climate. 

Despite improvements in workplace conditions, including higher wages and stronger work health and safety regulations, the industry continues to struggle with high attrition rates and insufficient local chef training pipelines.

Related AccomNews story: Apprentice incentive cuts spark alarm as chef shortage deepens

Over the past five years there has been a reduction in chef apprentices in training of 26.1 percent, and a reduction in chef apprentice commencements of 50.1 percent.

One of the largest barriers to increasing apprentice chef commencements is the cost to the employer in the first year. The costs of supervision, particularly in that first year —and in a sector which works 24/7—is a major barrier to employers committing to hiring an apprentice chef. 

A new apprentice knows little about operations in the kitchen, their productive output is low and supervisory costs high— they are learning on the job so to speak.

These costs are even higher in hospitality due to the 24/7 nature of the industry and the rostering complexities of ensuring adequate supervision for the apprentice.

Read more insights from industry experts on AccomNews HERE

A stronger, incentivised apprenticeship model is essential to attract and retain aspiring chefs, ensuring a skilled workforce which meets industry demand. By reducing the financial burden on apprentices and providing targeted employer support, the federal government can improve retention rates, strengthen local employment and promote long-term industry growth.

Everyone wins.

The capacity of hospitality businesses to take on apprentice chefs was not helped by the government’s recent announcement that employer incentives in the first year for taking on an apprentice chef will reduce from $5000 to $2500. This is despite employers still being required to pay into the Skilling Australia Fund.

The AHA and AA are proposing to the government that the current incentives to both the employer and the apprentice be increased over the term of the apprenticeship to $15,000 for each, with the employer incentives concentrated on year one, where productivity of the apprentice is low and supervisory costs are high. 

The proposed incentive structure would provide $15,000 each to the apprentice and employer over four years. For the employer, the weighting of the incentive would be weighted to $8000 over the first year, with the remaining $7000 over the remainder of the apprenticeship.

By adopting this structured financial incentive model, the government can help hospitality businesses increase apprentice chef commencements, reduce apprentice dropout rates, encourage more young Australians to pursue culinary careers, support industry growth while easing cost pressures on businesses, and reduce dependency on skilled migration.

It’s important to get this right, and the AHA (and AA) will be working hard this year on behalf of members down in Canberra to ensure we do all we can to ease the chronic worker shortage.

This article first appeared in the Summer edition of AccomNews. Click below to explore.