Maritime Skills and Training Initiative (MSTI) Program

Purpose and Program Overview

The Maritime Skills and Training Initiative (MSTI) Program is an Australian Government grant designed to address critical skills shortages in the maritime sector by funding employers to provide mandatory sea time for trainee and cadet seafarers. With $13.8 million allocated over four years (2025-26 to 2028-29), the program aims to increase the availability of training berths on Australian vessels, enabling more seafarers to complete the sea service required for International Convention on Standards of Training, Certification and Watchkeeping (STCW) 1978 certification. This initiative directly responds to recommendations from the Strategic Fleet Taskforce and supports the establishment of Australia’s Strategic Fleet while strengthening the nation’s long-term maritime capability and resilience. 

Key Grant Details

• Grant amounts: Up to $102,000 for Trainee (Integrated Ratings), $187,500 for Deck Cadets, and $197,500 for Engine Cadets and Electro-Technical Officers 
• Application dates: Opens 24 November 2025 and closes 23 December 2025 
• Eligible entities: Group Training Organisations, AMSA-registered private seafarer recruitment and placement services, shipping companies, and vessel operators 
• Co-contribution: Required – applicants must cover all remaining project costs, including any ineligible expenditure and any eligible expenditure exceeding the grant caps 
• Location applicability: Nationwide (ACT, NSW, VIC, SA, WA, QLD, NT, TAS, and Administered Territories) 

Priority Sectors

The Maritime Skills and Training Initiative Program specifically targets the maritime industry, with priority given to placements for these roles:

• Trainee – Integrated Ratings 
• Deck Cadets 
• Engine Cadets 
• Electro-Technical Officers 

Funding Scope

• Minimum grant amount: $80,000 
• Maximum amounts per trainee/cadet: Vary by role as specified above 
• Total funding pool: $13.8 million over four years, with approximately $3.451 million available each financial year 
• Project timeline: Projects must commence after 1 March 2026 and be completed by 30 March 2029 

Eligibility Criteria

To be eligible for the MSTI Program, applicants must meet all the following requirements:

• Hold an Australian Business Number (ABN) and be incorporated in Australia 
• Have an account with an Australian financial institution 
• Be the employer of the trainee/cadet seafarers and fall into one of these categories: Group Training Organisation, AMSA-registered private seafarer recruitment and placement service, or shipping company/vessel operator 
• Acknowledge they cannot claim the shipping exempt income tax incentive for the same trainee/cadet seafarers funded under this program 
• Have no convictions under Australian work health and safety laws in the previous three years 
• Have no court findings of underpaying seafarers or breaches of the Fair Work Act 2009 
• Have no significant compliance actions from AMSA, ATSB, or the Fair Work Ombudsman 

Eligible Activities and Expenses

Eligible Expenditure

• Wages and on-costs for trainee/cadet seafarers, including payroll tax, superannuation, leave, and insurances 
• Provision of appropriate placement onboard vessels, including accommodation and victualling 
• Travel between the trainee/cadet’s home and the vessel (economy class fare equivalent) 
• Independent audit costs of project expenditure (up to 1% of total eligible expenditure) 

Ineligible Expenditure

• TAFE, university, or RTO course fees 
• AMSA certificate fees and medical fitness certificates 
• Maritime Security Identification Card (MSIC) costs 
• Government or union fees 
• General ongoing operational expenses (rent, administration, utilities, legal, accounting, bank fees) 
• Wages for staff other than the trainee/cadet 

Assessment Process

The Maritime Skills and Training Initiative Program is competitive, with applications assessed against the following criteria :

• Criterion 1: Alignment with program purpose, objectives and outcomes (40 points) – Applicants must demonstrate how the project will provide mandatory sea time, how many trainees will be supported, how placements will lead to STCW certification, and alignment with priority roles. 
• Criterion 2: Capacity, capability and resources to support trainee/cadet seafarers (40 points) – Assessment includes vessel types, amount of sea time, recruitment plans, training plans, support mechanisms, and relevant experience. 
• Criterion 3: Financial capability and governance (20 points) – Applicants must demonstrate detailed project planning, budgeting, and ability to fund all remaining project costs. 

Only applications that score at least 50% against each criterion will be considered for funding. The Minister makes the final decision. 

Recent Program Updates

The MSTI Program was launched as a key outcome of the 2023 Strategic Fleet Taskforce Report, with the Albanese Government committing $13.8 million over four years to address maritime skills shortages.  The program will be complemented by an additional $2.5 million allocated to Industry Skills Australia (ISA) to tackle training barriers within the industry.  This initiative supports the government’s establishment of a strategic fleet of up to 12 Australian-flagged and crewed vessels that can be requisitioned in times of need. 

Application Tips

• Review eligibility thoroughly: Ensure your organisation meets all eligibility requirements before applying, particularly regarding organisational type, compliance history, and ABN status. 
• Demonstrate alignment with program objectives: Clearly explain how your project will increase training berth availability and contribute to STCW certification outcomes. 
• Provide detailed capacity evidence: Include comprehensive information about vessel types, sea time amounts, recruitment plans, training frameworks, and support mechanisms. 
• Prepare a realistic budget: Develop a detailed project budget showing all income sources and eligible expenditure, demonstrating your ability to cover all remaining costs. 
• Highlight relevant experience: Detail your organisation’s experience in training and supporting trainees/cadets over the past five years, including numbers supported and certification outcomes. 

Where to Get Help

Consider consulting a grant specialist for a personalised eligibility assessment and expert assistance in preparing a strong, compliant and competitive application. Contact Pattens Group today, and we will connect you with Australia’s best grant specialist, boasting over 35 years of experience in the industry and a 100% success rate. For official guidelines, application details, templates, and further information, visit the MSTI program’s official webpage and other associated Australian government websites.