It has been well-documented that Australia is currently experiencing a severe shortage of construction workers. In the last three years, the construction industry has lost approximately 30 per cent of its workforce. In the last year alone, construction apprenticeship commencements have fallen by around 2,000.

Building industry sources warn that the issue will need to be addressed if Australia is to meet its ambitious target to build 1.2 million new homes by 2029. They estimate that an additional 500,000 workers will be required over the next five years if Australia is to meet the targets.

Recognising this issue, the Federal Opposition has announced a new incentive to encourage employers to take on more apprentices.

So, what does the plan involve, and what has been the reaction?

What does the plan involve?

The Federal Coalition has announced that if elected, it would offer small to medium businesses $12,000 for taking on apprentices in critical trades. The opposition says the new scheme would support up to 40,000 tradies and trainees each year, at a cost of $500 million over four years.

What’s behind the move?

Currently, there are 333,700 apprentices and trainees in Australia. According to the National Centre For Vocational Education, this figure is down from 428,000 in 2022 when businesses were paid to hire and train young workers during the pandemic. Experts say the drying up of COVID incentives is the main reason that apprentice numbers have fallen in recent years. The Coalition hopes the new policy will increase the figure to 400,000.

What has been the reaction?

Industry experts have largely welcomed the Opposition’s announcement.  Master Builders Australia, the Civil Contractors Federation and the Urban Development Institute Of Australia have all declared their support for the proposal. They argue that the new incentive will make it much cheaper for businesses to take on apprentices, which will encourage businesses to take on more apprentices.

“This is a win for civil contractors, for the broader construction industry, and for Australia’s future infrastructure delivery,” the groups said in a joint statement.

“The construction sector employs over 200,000 civil workers across Australia, yet participation in apprenticeship-level training remains well below the national average. This commitment ensures civil apprentices will be eligible for financial support under the Australian Apprenticeships Incentive System.

“The industry is now calling on the Albanese government to recognise the leadership shown by the federal opposition to match this announcement and extend the same recognition to all construction apprentices including civil across Australia.

However, critics argue the money should instead go to apprentices themselves, rather than their bosses. They argue that while the move may have some impact, addressing low wages will do more to boost apprenticeship numbers in Australia.

With the federal election looming, the promise is just the latest in a series of announcements designed to encourage younger workers to enter the construction industry. The opposition has previously announced they will match the Government’s pledge to pay construction apprentices up to $10,000 for completing an in-demand trade. The government has also promised to enshrine its Free TAFE program in legislation.

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Article References

Armstrong, C (April 9 2025) ‘Federal Election 2025: Coalition’s $12k incentive to boost tradie apprentices, trainees’, NT News, accessed 14 April 2025.

Australian Council Of Trade Unions (April 9 2025) ‘$12,000 for bosses: Unions slam Coalition’s apprenticeship proposal’, Australian Council Of Trade Unions, accessed 14 April 2025.

Yim, N (March 30 2025) ‘Election 2025: Labor challenged to match Coalition $500m apprenticeships pledge’, NT News, accessed 14 April 2025.