The Government has announced plans to pay construction apprentices $10,000 on top of their regular wages and entitlements during training.
Prime Minister Anthony Albanese said the payments would boost a “skilled workforce” to help meet Labor’s goal of building 1.2 million homes by mid-2029. Recent analysis has shown this target is not on track.
Industry groups, unions, and the Coalition Opposition have supported the proposal.
Apprenticeships
Under the apprenticeship system, trainee builders and construction workers earn money while learning.
Apprenticeships are usually full-time, though wages are lower than other professions. It typically takes three to four years to complete a construction apprenticeship.
On Friday, the Government, which found cost of living pressures are “steering people away” taking them up.
Announcement
The Government has now announced ato encourage more people to enter the construction industry.
The payment would be rolled out in five $2,000 instalments over the life of an apprenticeship.
The payments would be paid alongside regular apprentice wages.
It’s slated to come into effect from July.
Government remarks
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’tafford to stay.”
The PM said the payment incentive for construction tradies matches those provided for the renewable energy sector.
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“, more new energy. And more support for the tradies who will build both,” Albanese said.
Housing target
The Government has set a target of building.
Analysis by thepublished last week showed the plan is already 15,000 homes short of its target, three months after it came into effect.
The Council’s CEO Mike Zorbas welcomed the apprenticeship payments, saying: “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.“
Coalition
Shadow Skills Minister Sussan Ley said the Coalition broadly supports the payment plans.
“We support a program that’s going to get more apprentices into the system to help deal with the housing crisis that Labor’s created,” Ley said.
She said “Aussie builders are going bust at record rates,” and pointed to escalating skill shortages across multiple industries.
Reaction
Key union and industry groups have also welcomed the government’s $10,000 incentive plan.
Master Builders Association CEO Denita Wawn said: “around 50 per cent of all apprentices do not complete their training” and said she hoped the payments would lead to a higher completion rate.
The, said the payments will assist many construction apprentices who are held back by “low wages”.
