Taking on an apprentice is one of the smartest investments an arborist business can make. You get to train someone in your methods, build loyalty from day one, and develop the next generation of qualified arborists for your team. But before you bring an apprentice onto your crew, you need to understand exactly what you are required to pay them – and what the true cost to your business will be.
This guide covers everything Australian arborist employers need to know about apprentice wages in 2026, including award rates, allowances, employer obligations, and the full cost breakdown you should budget for.
Understanding the Horticulture Award for Arborist Apprentices
Arborist apprentices in Australia are covered by the Horticulture Award 2020 (MA000028), which is the modern award governing wages and conditions for horticulture workers, including those undertaking a Certificate III in Arboriculture.
The award sets out minimum pay rates for apprentices based on their year of training and age. These are the absolute minimum amounts you must pay – many employers choose to pay above award to attract quality apprentices in a competitive market.
It is worth noting that award rates are updated annually, usually taking effect from the first full pay period on or after 1 July. Always verify current rates on the Fair Work Ombudsman Pay Calculator before finalising pay arrangements.
Certificate III in Arboriculture Apprentice Wages 2026
The Certificate III in Arboriculture (AHC30820) is the standard qualification pathway for arborist apprentices. Training typically takes three years and combines on-the-job learning with formal study at a registered training organisation.
Standard Apprentice Rates (Under 21 at Commencement)
For apprentices who commenced their apprenticeship under the age of 21, the Horticulture Award provides the following minimum hourly rates for 2026:
| Year of Apprenticeship | Percentage of Trade Rate | Approximate Hourly Rate |
|---|---|---|
| 1st Year | 55% | $15.85 |
| 2nd Year | 65% | $18.73 |
| 3rd Year | 80% | $23.05 |
Note: These rates are indicative and based on the Level 4 (Tradesperson) classification under the Horticulture Award. Actual rates should be verified against the current Fair Work pay guides.
Adult Apprentice Rates (21 or Over at Commencement)
Adult apprentices – those who commenced their apprenticeship at age 21 or older – are entitled to higher minimum rates. This recognises that adult workers typically have greater financial obligations and experience.
| Year of Apprenticeship | Percentage of Trade Rate | Approximate Hourly Rate |
|---|---|---|
| 1st Year | 80% | $23.05 |
| 2nd Year | 90% | $25.93 |
| 3rd Year | 95% | $27.37 |
The adult apprentice rates make a significant difference to your labour costs. A first-year adult apprentice earns approximately the same as a third-year junior apprentice, so factor this into your workforce planning.
School-Based Apprentice Rates
For school-based apprentices undertaking their Certificate III in Arboriculture while still completing secondary education, different arrangements apply. These apprentices typically work reduced hours and progress through training at a slower pace.
School-based apprentices are generally paid at the standard apprentice rate for hours worked, but total weekly earnings will be lower due to reduced working hours (commonly 7.5 to 15 hours per week outside school commitments).
Factors Affecting Arborist Apprentice Pay
While the award sets minimum rates, several factors can influence what you actually pay your apprentice.
State and Territory Variations
Although the Horticulture Award is a federal modern award applying across Australia, there can be practical variations in apprentice wages between states and territories:
Training contracts and incentives vary by jurisdiction, which may affect the overall cost-benefit calculation for employers.
Cost of living differences mean that award minimums go further in some regions than others. In high-cost areas like Sydney or Melbourne, you may need to pay above award to attract and retain quality apprentices.
State-based training subsidies differ significantly, which we will cover in the government incentives section below.
Company Size and Resources
Larger arborist businesses often pay above-award rates to attract the best candidates. They can spread the training investment across more jobs and typically have more structured training programs.
Smaller operators, while potentially offering more hands-on learning, may find it harder to justify premium wages but can compete through offering a broader range of experiences and faster progression.
Specialisations and Work Types
Some arborist businesses focus on specialised work that may warrant different pay considerations:
- Powerline clearance work requires additional qualifications and attracts higher rates for qualified workers – apprentices learning these skills may command premiums
- Consulting arboriculture involves report writing and assessments that some apprentices may assist with
- Large tree removals requiring crane work provide valuable experience that makes your apprenticeship more attractive
Overtime and Penalty Rates
Apprentices are entitled to overtime and penalty rates under the Horticulture Award, just like other employees. This includes:
Overtime rates:
- First 2 hours beyond 38 ordinary hours per week: 150% (time and a half)
- After 2 hours overtime: 200% (double time)
Saturday work:
- First 2 hours: 150%
- After 2 hours: 200%
Sunday work:
- All hours: 200%
Public holidays:
- All hours: 250% (double time and a half)
For arborist businesses, weekend storm damage call-outs and emergency work are common. Make sure you are paying correct penalty rates when your apprentice works outside ordinary hours – the penalties apply to their base rate, not the full trade rate.
Employer Obligations for Arborist Apprentices
Employing an apprentice comes with specific legal obligations beyond simply paying the correct wage. Getting these wrong can result in penalties, back-payments, and damage to your reputation as an employer.
Minimum Wage Compliance
You must pay at least the minimum award rate for every hour worked. This includes:
- Ordinary hours at the applicable apprentice rate
- Overtime at the correct penalty rate
- Travel time where required by the award
- Training time (discussed below)
The Fair Work Ombudsman actively audits employers, including in the horticulture sector. Underpayment – even if unintentional – can result in significant penalties and back-payment orders.
Superannuation at 12%
From 1 July 2025, the Superannuation Guarantee rate is 12%, increasing to 12.5% from 1 July 2026. You must pay superannuation on your apprentice’s ordinary time earnings, which includes their base wage plus most allowances.
Key superannuation points for apprentices:
- Super is payable from the first dollar of earnings – there is no minimum threshold
- Payment must be made at least quarterly, by the 28th day after the quarter ends
- Missing super payments attracts the Superannuation Guarantee Charge, which includes interest, penalties, and an administration fee – and is not tax-deductible
For detailed guidance on managing payroll obligations, see our guide on arborist payroll in Australia.
Workers Compensation Insurance
Workers compensation insurance is compulsory in every state and territory if you employ anyone, including apprentices. Given that arboriculture is classified as high-risk work, this is not something you can overlook.
Important considerations:
- Your policy must be in place before the apprentice starts work
- Premiums are calculated based on your total wages bill and industry classification
- Arboriculture attracts higher premium rates due to the inherent risks
- Claims history affects your premium – investing in proper training and safety reduces long-term costs
The premium rate for arboriculture typically ranges from 5% to 10% of wages, depending on your state and claims history. For an apprentice earning $35,000 per year, this could mean $1,750 to $3,500 in workers comp premiums.
Training Time Payment
Under the apprenticeship system, you are required to pay your apprentice for time spent in formal training – whether that is attending TAFE, a registered training organisation, or undertaking structured on-the-job training.
What you must pay for:
- All hours attending formal training (TAFE or RTO)
- Time spent completing required coursework
- On-the-job training and assessment
This is a legal requirement, not optional. Some employers mistakenly believe training is unpaid or comes out of the apprentice’s own time – it does not. Budget for approximately one day per week (or equivalent block release) of paid training time.
Tool Allowances
The Horticulture Award includes provisions for tool allowances where employees are required to provide and maintain their own tools. While many arborist employers provide all necessary equipment, if you expect your apprentice to supply any tools, you may be required to pay the relevant allowance.
The tool allowance under the award is paid as a weekly amount and is intended to cover the cost of purchasing and maintaining required tools. Always check the current award for specific rates.
Beyond the Base Wage: Allowances for Arborist Apprentices
Several allowances may apply to arborist apprentices depending on the work they perform. These are in addition to the base wage and must be paid where the conditions are met.
Travel Allowances
The Horticulture Award provides for travel allowances in certain circumstances:
Fares and travel time: Where an employee is required to work at a location other than their usual workplace, excess travel time and fares may be payable.
Vehicle allowance: If the apprentice uses their own vehicle for work purposes (beyond commuting to the primary workplace), a cents-per-kilometre allowance applies. The current rate should be verified against the award, but is typically aligned with ATO rates.
Distant work provisions: For work requiring overnight stays away from home, the award includes provisions for accommodation and meal allowances.
For arborist businesses operating across multiple job sites daily, managing travel allowances correctly is essential. Many employers simplify this by collecting apprentices from a central depot or clearly defining the primary workplace in the employment contract.
Height Allowance
The Horticulture Award includes a height allowance for employees required to work at heights. Given that climbing and working at height is fundamental to arborist work, this allowance is likely to apply to apprentices once they progress to height work:
- Working at heights above 4 metres attracts a per-hour allowance
- The amount varies depending on the height band
- This applies to the actual hours worked at height, not the full shift
Check the current award for specific height bands and rates. This allowance recognises the additional skill and risk involved in elevated work.
First Aid Allowance
If your apprentice holds a current first aid certificate and is appointed as a first aid officer for your crew, they may be entitled to a first aid allowance. This is a weekly flat rate in addition to their normal wage.
Many arborist employers encourage apprentices to obtain first aid certification early in their training – it is both a valuable skill and a requirement for many worksites. However, simply holding the certificate does not automatically trigger the allowance; they must be formally appointed as a first aid officer.
Tool Allowance
As mentioned above, if your apprentice is required to provide and maintain their own tools (rather than using employer-supplied equipment), a weekly tool allowance applies. The current rate should be verified against the award.
Most arborist employers provide all major equipment (chainsaws, climbing gear, PPE), but some expect apprentices to supply basic hand tools. Be clear about expectations and pay the allowance if required.
Apprentice Costs for Employers: Full Breakdown
Understanding the true cost of employing an apprentice helps you budget accurately and price your jobs correctly. The base wage is just the starting point – on-costs add significantly to your total employment expense.
Comprehensive Cost Breakdown Table
The following table shows indicative annual costs for employing an arborist apprentice at each stage of their training. These figures assume a full-time apprentice working 38 hours per week on ordinary hours only.
| Cost Component | 1st Year | 2nd Year | 3rd Year |
|---|---|---|---|
| Base Wage (annual) | $32,900 | $38,880 | $47,840 |
| Superannuation (12%) | $3,948 | $4,666 | $5,741 |
| Workers Comp (approx. 7%) | $2,303 | $2,722 | $3,349 |
| Annual Leave Accrual (4 weeks) | $2,531 | $2,991 | $3,680 |
| Personal Leave Accrual (2 weeks) | $1,265 | $1,495 | $1,840 |
| Training Time Cost* | $3,500 | $3,500 | $3,500 |
| Training Fees (RTO/TAFE) | $0-$2,000 | $0-$2,000 | $0-$2,000 |
| PPE and Equipment | $2,500 | $1,000 | $1,000 |
| Supervision Cost* | $8,000 | $6,000 | $4,000 |
| Total Estimated Cost | $56,947 – $58,947 | $61,254 – $63,254 | $70,950 – $72,950 |
*Training time cost reflects reduced productive output during training days. Supervision cost reflects senior staff time spent training and supervising.
Hidden Costs to Budget For
Beyond the direct costs shown above, several hidden costs affect your bottom line:
Reduced productivity: A first-year apprentice produces significantly less work output than an experienced employee. You are investing in their development, not just paying for immediate labour.
Rework and errors: Apprentices make mistakes – it is part of learning. Budget for some material waste and time spent correcting errors.
Administration: Managing training contracts, liaising with RTOs, tracking competencies, and completing apprenticeship paperwork takes time.
Mentoring burden: Your experienced staff spend time demonstrating techniques, answering questions, and ensuring safe work practices. This reduces their productivity.
Equipment wear: Apprentices learning to operate equipment may cause additional wear or damage compared to experienced operators.
Government Incentives and Subsidies
The good news is that both federal and state governments offer significant incentives to encourage apprentice employment. These can substantially offset your costs.
Australian Apprenticeships Incentive System:
The federal government provides wage subsidies to eligible employers taking on apprentices in priority occupations. Arboriculture often qualifies under trades categories.
Current incentives may include:
- Hiring incentives paid in instalments over the apprenticeship
- Completion payments when the apprentice finishes their qualification
- Additional support for employing apprentices from disadvantaged backgrounds
State-Based Subsidies:
Each state and territory offers additional incentives:
- NSW: Various payroll tax exemptions and rebates for apprentice wages
- Victoria: Apprenticeship Support Officers and targeted subsidies
- Queensland: User Choice funding for training costs
- Other states: Similar programs with varying eligibility criteria
Training Cost Subsidies:
Government funding often covers a significant portion of formal training costs, reducing or eliminating RTO fees for employers.
To maximise your entitlements, contact the Australian Apprenticeship Support Network in your area or speak with your RTO about available funding.
Tips for Employers: Managing Apprentice Pay
Setting up apprentice payroll correctly from day one saves headaches later. Here are practical tips for getting it right.
Structuring Apprentice Pay
Set up your payroll system correctly:
- Create a specific pay category for apprentices
- Configure automatic rate increases as they progress through training years
- Include all applicable allowances as separate pay items
- Ensure penalty rates calculate correctly from the apprentice base rate
Document everything:
- Keep the training contract accessible
- Record the official apprenticeship commencement date (which determines rate progression)
- Track qualification milestones that may trigger rate changes
Consider annual salary vs hourly:
Some employers pay apprentices an annual salary rather than hourly. If you do this, ensure the salary covers all award entitlements including overtime, penalties, and allowances the apprentice would otherwise receive. Get this wrong, and you risk underpayment claims.
Record Keeping Requirements
Fair Work requires employers to keep detailed records for all employees, including apprentices:
Time and attendance:
- Start and finish times for each shift
- Unpaid break periods
- Overtime hours worked
- Training time separately identified
Pay records:
- Gross and net pay for each period
- Breakdown of ordinary hours, overtime, allowances, and penalties
- Superannuation contributions
- Leave accruals and balances
Employment records:
- Training contract and amendments
- Award classification
- Rate of pay and any variations
Records must be kept for seven years and be accessible if requested by Fair Work or the apprentice.
Payroll Setup Checklist
Before your apprentice starts, ensure you have:
- Completed training contract lodged with your state training authority
- TFN declaration received and lodged with ATO
- Superannuation fund nomination (or stapled fund request made)
- Workers compensation policy updated to include new employee
- Payroll system configured with correct apprentice rates
- Award classification documented (Horticulture Award, apprentice level)
- Time recording system in place
- Employment contract signed (covering probation, duties, and workplace policies)
For comprehensive guidance on payroll setup and compliance, consider our tax compliance services which include payroll configuration and ongoing support.
Frequently Asked Questions
What is the minimum wage for a first-year arborist apprentice in 2026?
Under the Horticulture Award 2020, a first-year apprentice who commenced under age 21 is entitled to 55% of the trade rate, which equates to approximately $15.85 per hour (subject to annual rate updates from 1 July). Adult apprentices (21 or over at commencement) receive 80% of the trade rate from their first year, approximately $23.05 per hour. Always verify current rates on the Fair Work Ombudsman website before finalising pay arrangements.
Do I have to pay my apprentice for time spent at TAFE or training?
Yes, this is a legal requirement. You must pay your apprentice their normal hourly rate for all time spent attending formal training, whether that is day release at TAFE, block release courses, or completing required coursework. Training time is considered working time under the apprenticeship arrangements. Budget for approximately one day per week of paid training time, or equivalent block release periods.
Can I pay my apprentice above the award rate?
Absolutely, and many arborist employers do. The award rate is a minimum, not a target. Paying above award can help you attract better candidates, reduce turnover, and reward strong performers. Just ensure you document the agreed rate in the employment contract and that all other award conditions (overtime, penalties, allowances) still apply correctly.
What government subsidies are available for hiring arborist apprentices?
The Australian Apprenticeships Incentive System provides wage subsidies for employers taking on apprentices in priority occupations. Arboriculture typically qualifies. Subsidies may include hiring incentives (paid over the apprenticeship period) and completion bonuses. State governments also offer additional incentives including payroll tax exemptions, training subsidies, and support payments. Contact the Australian Apprenticeship Support Network or your state training authority for current eligibility and amounts.
When do apprentice wage rates increase?
Apprentice rates increase in two ways. First, award rates are reviewed annually by the Fair Work Commission, with increases typically taking effect from the first full pay period on or after 1 July each year. Second, your apprentice progresses through training years (1st, 2nd, 3rd year) based on their training contract commencement date, with each year attracting a higher percentage of the trade rate. Ensure your payroll system is configured to apply both types of increases correctly.
Take the Complexity Out of Apprentice Payroll
Employing an apprentice is a significant commitment, but the investment pays off when you build a skilled, loyal team member who understands your business from the ground up. Getting the pay and conditions right from day one protects both you and your apprentice.
If the detail in this guide feels overwhelming, you are not alone. Many arborist business owners are experts at tree work, not payroll compliance. The penalties for getting it wrong are real – underpayment claims, Fair Work audits, and ATO scrutiny can all result from honest mistakes.
At Arbour Advisory, we specialise in helping arborist businesses across Australia manage their payroll, tax compliance, and apprentice employment obligations. Our team understands the specific challenges of the arboriculture industry and can ensure your apprentice arrangements are set up correctly from the start.
If you are considering taking on an apprentice, expanding your team, or want to review your current payroll setup, we are here to help.
Book a free consultation and let us handle the compliance so you can focus on training the next generation of arborists.
George Morice is a Chartered Accountant and founder of Arbour Advisory, working exclusively with arborist businesses across Australia. For questions about apprentice wages, payroll, or any aspect of your business finances, get in touch.
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