Apprentices are the backbone of the hair, beauty, and barbering industry. They’re the future colourists, stylists, barbers, therapists, and managers who keep the industry growing and evolving. But since the 1st of January 2026, the way the Australian Government supports apprentices is changing,  and these changes will impact how salon owners recruit, train, and plan their teams for the coming years.

If you rely on apprentices to help your business run smoothly, now is the time to understand what’s shifting and how to prepare.

What’s actually changing?

In simple terms, the Australian Government is reshaping how apprenticeship incentives work. Apprenticeships linked to clean energy and housing construction will receive the highest level of support. These are considered “priority” areas, and the government is directing additional funding there to fill national skills shortages.
Hairdressing, barbering, beauty services, and most personal services do not fall into these priority sectors. This means that for new apprentices starting from 1 January 2026, the incentive payments available to both apprentices and salon employers will be reduced compared to current levels.

For several years, salons could access up to $10,000 in combined support for each apprentice, $5,000 to the employer and $5,000 directly to the apprentice. Since the start of this year the support available to salons has been cut in half to $2,500.

The new structure:

• The employer incentive reduces from $5,000 → $2,500
• Apprentice support reduces from $5,000 → approx. $2,500
• The total available support goes from $10,000 → approx. $5,000

Importantly, if your apprentice started before the end of 2025, they would remain on the higher payment structure for the entire duration of the apprenticeship.

What does this mean for you?

These changes don’t remove apprenticeship support, but they do reduce it. And that reduction can have a ripple effect on how salons operate.
Hiring a new apprentice may now come with higher upfront costs, especially in the first year when they’re still learning and not fully productive. That means you may need to budget differently, plan training more strategically, and rely more heavily on experienced team members to keep the salon running smoothly. You may also notice that fewer young people choose apprenticeships in 2026 and 2027, simply because the financial incentives aren’t as strong as before. As a result, the competition for talented apprentices might increase. Recruiting the right person could take longer and retaining them becomes even more important.

Higher first-year wage costs
Salon owners will now shoulder a larger share of early-stage wage and training costs.

According to the Fair Work Ombudsman, apprentice wages under the Hair & Beauty Award sit at:

• $14.06/hr for junior apprentices
• $22.50+/hr for adult apprentices

With reduced incentives, these wage costs become more challenging for small-to-medium salon businesses. If you’re a salon owner or manager these changes could reshape your 2026 and 2027 operations. These changes don’t just affect hiring, but they influence how the entire salon runs.

You may need to create a more predictable revenue cycle, since:

1. Wages and training might take a larger share of your operating budget.
2. You might need to schedule senior stylists more intentionally to supervise apprentices.
3. You may need stronger reporting to understand exactly when an apprentice is ready to take on more services independently.
4. Recruitment cycles could lengthen.
5. Training plans may need updating. And a more structured onboarding process will become essential.

The salons who plan early will have a huge advantage.

How can Shortcuts support you through this transition?

Here’s the good news: even though government incentives are shifting, your technology can smooth out the bumps, stabilise your revenue, and help you train apprentices more effectively. Shortcuts give you real visibility into your team, your revenue, and your operations in a way that helps you make confident decisions.

1. Smarter workforce planning

With our Employee Performance reporting, you can see exactly how each team member contributes to revenue, including apprentices. You’ll identify when their productivity is rising and when they’re ready for more responsibility. This helps you confidently increase apprentice workload without guessing.

2. Revenue protection when you need it most

Booking Deposits (including the new Touch Tip enhancement) allows you to secure revenue upfront for both online and soon in-person bookings as well. Less risk of no-shows means more financial stability, especially important when you’re investing in training.

3. Better scheduling for training and profit

Shortcuts gives you clarity around peak and quiet periods,  so you can schedule apprentices for training during slower times and book them into billable services when demand is high. This helps you to avoid overstaffing,  while supporting the professional development of your apprentice.

4. Marketing that fills apprentice bookings faster

Need to grow an apprentice’s book quickly? Shortcuts Marketing makes it easy to promote junior services, send targeted offers, and fill spare appointments automatically.

This helps apprentices gain experience more quickly all while boosting revenue.

Are you a salon owner who is impacted by these change? Here’s what you should do next.

Over the coming months, it’s worth reviewing your staffing plan and setting up a more structured workforce strategy.
Think about:

• When you typically hire apprentices
• How long it takes for them to become fully productive
• Whether your current systems give you enough visibility and reporting to plan effectively
• How capturing Booking Deposits could support your revenue during training periods

If you’re already using Shortcuts, you’re in an excellent position to navigate the changes ahead. Our tools will help you forecast, plan, and measure apprentice development at every stage. If you’re new to Shortcuts or want help making the most of your setup, we’re here to guide you. Simply reach out to us and we can chat to you about how to harness our features to support your business during this time.

Final thoughts

Yes, government support is changing, but your salon’s ability to grow and thrive remains strong with the right planning and systems.
With smarter forecasting, structured training, and tools like Shortcuts to protect revenue and improve productivity, you can continue building an exceptional team and a resilient business through 2026 and 2027. Your apprentices are worth the investment, and with Shortcuts, you can invest with confidence.

Ready to prepare for the year ahead?

Book a Shortcuts Health Check and let our team help you plan your workforce strategy for 2026 and 2027.