Building sector apprentices offered $10k incentive to complete training amid housing crisis, labour shortages

Traineeships are prime opportunities for people to gain invaluable experience and knowledge.

People enter an industry because they have an aptitude and interest in the field.

One depressing reality of traineeships though, are often the inability to live in the world and survive on the wage.

In a move aimed at tackling the national housing crisis and bolstering the building and construction industry, the Prime Minister has announced a new incentive program for apprentices in the home building sector. The program is set to begin on July 11.

The program, named the Key Apprentice Program, will provide eligible apprentices with $10,000 in incentive payments, on top of their wages.

The incentive is designed to encourage more Australians to take up trade apprenticeships and remain in the construction industry. The Prime Minister stated that the initiative is "about more than bricks and mortar, it is about people and investment in skills. The goal is to address the critical labour shortage in the building sector. Build Skills Australia estimates a shortage of around 200,000 building-sector workers this year alone.

Key aspects of the program:

•Eligible apprentices will receive a total of $10,000 in payments over the life of their apprenticeship.

•The payments will be staggered, with $2,000 paid at six, 12, 24, and 36 months, and at the completion of the apprenticeship.

•The incentive is targeted at residential construction apprentices, such as bricklayers, electricians, plumbers, carpenters, and joiners.

•The payments are in addition to the apprentice's regular wages.

•This initiative aligns with incentives already in place for apprentices in the clean energy sector.

The Prime Minister has acknowledged that many apprentices struggle financially, with some earning as little as two-thirds of the minimum wage before factoring in the cost of tools and safety gear. This financial pressure leads many to leave their training. The new program also includes an increase to the allowance for apprentices living away from home, the first increase since 20032.

Benefits for the building industry:

•The staged payments provide a financial incentive for apprentices to complete their training, with the final payment only paid on completion.

•Around 50 percent of all apprentices do not currently complete their training, and the new approach aims to improve completion rates.

•The program aims to address labour shortages, identified as a significant barrier to resolving the housing crisis.

The government says incentive program is expected to help meet the government’s goal of building 1.2 million homes by July 2029.

Coupled with government funding for fee-free vocational training, the new program aims to make it an ideal time to pursue a career as a tradie.