LABOUR shortages have cast doubt on the government’s target of 1.2M new homes by mid-2029. To entice more people to take up a trade apprenticeship in the home building sector, Prime Minister Anthony Albanese has announced a $10,000 incentive, on top of their regular wages and entitlements during training.
In an address to the National Press Club, Albanese said, “Many apprentices have said they could earn more stacking shelves at the supermarket, and too many leave training because they simply can’t afford to stay.”
Slated to take effect from July 1, eligible apprentices will receive $10,000 in incentive payments on top of their wages and over the life of their apprenticeship, to work in housing construction or clean energy.
To prevent people from rorting the scheme, apprentices will receive $2,000 at six, 12, 24 and 36 months, and at the completion of their apprenticeship.
Key union and industry groups, including HIA Managing Director Jocelyn Martin, welcomed the incentive plan. Martin emphasised that addressing labour shortages is crucial for unlocking the potential of the residential housing industry.
“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.
“HIA’s All Hands On Deck 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 12 key trade occupations required for home building. The trades workforce needs to grow by at least 30 per cent to meet the Accord’s goals. That is over 83,000 additional tradies.
“We can only make housing a priority if we have a workforce capable of building the homes we need to reduce the barriers to home ownership,” concluded Ms Martin.
