Prime Minister Anthony Albanese has unveiled a new $10,000 incentive for apprentices who work in construction in a bid to address the nation’s housing shortage. It comes as the country struggles to find enough construction workers to meet the country’s needs.

The construction industry is currently struggling to attract new apprentices. In the year to December 2022, building and construction apprenticeship commencements fell by 22 per cent.

So, what’s behind the move and will it be enough to address our shortage of construction workers?

What’s behind the move?

The move is designed to prevent low-paid apprentices from leaving the industry. It comes amid concerns that the country does not have the workforce to meet its ambitious target of 1.2 million new homes by 2030.

According to the Master Builders Association, in the year to September only 165,000 new homes were built. This is well below the government’s target of 200,000. Based on current trends, it’s estimated the government will fall at least 350,000 homes short of its target. Experts warn an extra 90,000 construction workers will be needed to meet the target. Currently, the construction industry has an annual exit rate of 8 per cent, with only about half of those being replaced.

The Prime Minister said he understood the difficulties young apprentices often face.

“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 told a speech to the National Press Club in Canberra.

“Right now, a first-year carpentry apprentice earns about two-thirds of the minimum wage … As a number have said, they could earn a lot more stacking shelves in their local supermarket”.

As well as attracting new apprentices, the government hopes the new initiative will improve apprenticeship completion rates. The government hopes the initiative will improve apprenticeship completion rates, which have fallen significantly in recent years. Currently, only 50% of apprentices complete their training, with low wages being a major factor.

How would the scheme work?

Under the scheme, apprentices would be paid $2,000 under five instalments. These would be paid at the 12-, 24- and 36-month marks of their apprenticeship and would come in addition to the pay they receive for their work. The government has set aside $626.9 million, enough to cover the scheme for 60,000 apprentices.

The government will also increase the allowance that is set aside for apprentices living away from home, which is currently set at $77.17 per week.

Will it be enough?

Although Master Builders Australia welcomed the initiative, they remained uncertain about its ability to attract new apprentices.

Some experts are concerned the initiative might not receive the take-up the government is expecting. They point to a similar initiative aimed at the green jobs industry, which struggled to attract interest and had only 2,200 apprentices sign up. As a result, it had to be expanded to include all trade workers in the energy sector who performed green tasks.

While the government’s new initiative is an important first step, it won’t be enough alone to address the country’s construction workforce shortage.

If you have ever considered a career in construction, now could be the time to make a move with endless opportunities available.

Are you looking for a career in construction? Construction Resumes can help. We offer various services including apprentice resume writing and selection criteria writing.

Article References

Australian Property Update (28 January 2025) ‘$10,000 for tradies won’t ease housing shortage anytime soon’, Australian Property Update, accessed 30 January 2025.

Butler, J (24 January 2025) ‘Albanese plans cash boost for apprentice tradies amid doubts over Labor housing target’, The Guardian, accessed 30 January 2025.

Crowley, T (23 January 2025) ‘Albanese to announce $10,000 cash for apprentices who build homes in National Press Club election pitch’, ABC News, accessed 30 January 2025.