From July, eligible apprentices in housing construction or clean energy will receive $10,000, paid in $2000 instalments at the six, 12, 24 and 36-month milestones and upon completion.
The $626 million commitment is the first time the allowance has been increased since 2003 and it will be announced by Prime Minister Anthony Albanese during an address at the National Press Club on Friday.
"We recognise the next generation of tradies - the people we're counting on to build the new homes we need - are under significant financial pressure," he will say in his speech.
"Too many leave training, because they can't afford to stay.
"More new homes, more new energy and more support for the tradies who will build both."
A $626 million commitment for apprentices is the first time the allowance has increased since 2003. (Lukas Coch/AAP PHOTOS)
Mr Albanese has previously used his beginning-of-year press club address to unveil major reforms.
During his 2024 speech, the prime minister revealed he would rejig stage-three tax cuts to provide more for middle-income earners after promising to deliver the former coalition government's original plan.
With voters set to hit the ballot boxes before May 17, Mr Albanese is expected to use the upcoming opportunity as a pre-election launching pad.
He has spent the first weeks of the year courting voters across the country with infrastructure funding and a promise to "build Australia's future".
Cost of living is expected to be at the front of voters' minds.
Though the government has provided relief through changes to prescriptions, energy bill help and other policies, polling suggests Australians have grown increasingly disillusioned with Labor.
"Australians can't afford to pay their grocery bills, they can't afford to pay their insurance bills, they can't afford to pay their school fees," Opposition Leader Peter Dutton told reporters.
Mr Dutton has promised to build nuclear reactors and made several of his own infrastructure announcements, but voters are also appear unsure of the coalition, based on polling.
Many have instead turned to independents and minor parties, increasing the likelihood of a minority government.
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