THE PRACTITIONER'S COMPANION
Tuesday 11 February 2025

Housing sector apprentices offered $10k sweetener

Deal welcomed by housing industry bodies but they say more needs to be done to hit 1.2m homes target

3 min read
Master Builders CEO Denita Wawn

TRAINEE tradies in the residential housing sector will receive $10,000 bonuses under a $626 million push by the government to build 1.2 million homes in five years.

The bonuses will be rolled out from July if Labor wins the election, which must be held by May 17 at the latest.

The scheme is an extension of one which for apprentices in the clean energy sector – but that has so far only attracted about 2200 apprentices.

Master Builders Australia CEO Denita Wawn said: “Labour shortages are currently the biggest handbrake on fixing the housing crisis.

“Employing an apprentice comes at a cost. Not just their wage, but the hours spent teaching them, covering their training costs, and managing the associated administration, and helping them navigate the workforce which all adds up.

“A robust incentive system must provide assurance and minimise risk. It should mean that the employer does not shoulder the entire cost burden for the 50 per cent of apprentices who do not complete their studies.

“A better incentive system should free an employer to focus on training and teaching: this is especially important in the first and second years.”

MBA told Australian Conveyancer that 130,000 tradies to beat shortages last year.

HIA Managing Director Jocelyn Martin said: “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.”

“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.”

Property Council Chief Executive Mike Zorbas said boosting apprenticeship numbers is essential to building the homes we need.

“More workers on site is essential to solving the housing supply puzzle. Hopefully, this incentive will see completion rates increase,” Mr Zorbas said.

“Australia needs more bold thinking like this as we face headwinds in getting to our important national target of 1.2 million new homes by 2029.

“We also need more skilled construction workers from overseas and we need to better coordinate efficient state accreditation for skilled migrants through National Cabinet.

“With many skilled and qualified migrants already here, fairly and affordably matching them to building Australian homes and infrastructure is a policy no-brainer.

“Equally, there should be no more delay on state government coordination to streamline formal qualifications for midlife career changes into house building trades.

Property Council Chief Executive Mike Zorbas

“Our housing deficit is decades in the making. Labour shortages, planning delays, high property taxes and high construction costs mean government and industry have to work together over the next ten years to make it as easy as possible to invest in and build more homes.”

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