$10,000 boost to apprentices in residential construction

THE building and construction industry have been consistently advocating for reform in the apprenticeship program to attract more tradies into the industry.

The wheels of bureaucracy do turn slowly but when they finally catch on, it can be beneficial to the industry, and necessary to have any chance of meeting the governments big build target of 1.2 million homes.

So, the recent announcement that the Federal Government has recognised the importance of addressing the chronic tradie shortage, in a move to help overcome Australia’s housing crisis, has been welcomed by the sector.

From 1 July 2025, eligible apprentices in the residential construction sector will receive $10,000 in incentive payments, on top of their wages under a new Key Apprentices Program. The new payment will be staged at 6, 12, 24, 36 and upon completion, which is something the industry peak bodies have been calling for.

Apprentices in the building and construction industry currently receive a $5,000 payment, which is front-loaded.

This payment will remain available for apprentices who are not eligible for the Key Apprentices Program and has been extended until the end of 2025.

Last year, Master Builders released its blueprint for increasing the attraction and retention of apprentices in the industry

Master Builders Australia CEO Denita Wawn said that Australia’s building and construction industry faces the enormous task of building enough homes, commercial premises and infrastructure to meet increasing demand and a growing population.

“Labour shortages are currently the biggest handbrake on fixing the housing crisis,” Ms Wawn said.

“Coupled with government funding of fee free vocational education and training, there is no better time to pick up the tools and become a tradie.

“The revised staggering of payments is something Master Builders Australia (MBA) has long called for, so there is a financial incentive for apprentices to complete their training.

“Around 50 per cent of all apprentices do not complete their training – the new staged payments approach will hopefully see the rate of completions increase.”

The MBA also advise that builders would like to see this payment expanded to other areas of the building and construction industry that are also facing chronic shortages and crying out for more apprentices, and cite that without roads, rail, sewerage and water we can’t build more homes for Aussies.

“We are disappointed that the high costs associated with hiring and training apprentices has not been recognised as yet, with 98 per cent of businesses in building and construction being small and they are doing it tough,” Ms Wawn explained

“Master Builders continues to call for a robust incentive system that supports employers and minimises the risk with taking on an apprentice who may or may not complete their training.”

The HIA has long called for milestone apprentice incentives to grow the domestic workforce to boost the number of skilled workers in key housing trades, has welcomed this response to the crippling labour short­ages the residential building industry has been faced with for decades.

HIA Managing Director Jocelyn Martin said that the five $2,000 incentive payments staggered throughout the course of an apprenticeship in the residential building industry will support the retention of an apprentice and combat the concerning non-completion rates we continue to see.

“Increasing the living away from home allowance could also see greater activity in regional areas that struggle to attract key housing trades,” Ms Martin said.

“While incentive payments are a key piece to addressing skills shortages, it is just one tool in the toolkit government has to address this issue and make the delivery of housing a priority,” Ms Martin continued.

“Retention rates are also much better for apprentices through industry based mentoring programs, including group training organisations, where pastoral care is a key aspect.”

Recently HIA’s All Hands On Deck research found that if Australia is to reach the Housing Accord target of 1.2 million homes in the next five years there needs to be an injection of 83,000 trades people into the workforce.

The residential building industry currently employs approximately 278,000 tradies across the twelve key trade occupations required for home building.

The industry’s peak bodies reveal that the trades workforce needs to grow by at least 30 per cent to meet the Accord’s goals which is over 83,000 additional tradies.