Budget boost to spark tradie boom, including $10K cash perk for apprentices
If the government hopes to meet its goal of building 1.2 million new homes, it needs a heap of new tradies – so it’s splashing some cash.
Federal Budget
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Fluorescent orange is the new black, with Treasurer Jim Chalmers splashing some serious cash on attracting new tradies in a bid to accelerate the government’s housing supply ambitions.
Combined with other new initiatives in this year’s budget, the government’s total housing commitments now sits at $33 billion.
In his speech to parliament, Mr Chalmers said the key to solving the crippling housing crisis is dramatically boosting supply with a hoped 1.2 million new homes by the decade’s end.
“To build more, we need to train more builders,” Dr Chalmers said.
“That’s why we’re attracting more apprentices into the housing industry by doubling incentive payments so eligible apprentices get up to $10,000 if they train-up in the housing construction sector.”
The cash bonus, which is currently $5000, will be doubled from July 1.
Employers of apprentices in key occupations can also access up to $5000 via a Priority Hiring Incentive, which includes many jobs relevant to housing construction.
The budget includes funding to extend that scheme for an additional six months December 31.
Australia’s home-building sector has been hit by severe labour shortages for years now, with industry groups warning major action was needed to move the dial on supply.
Elsewhere, the budget allocates $161 million in funding in 2024-25 for the Apprenticeship Support Loans scheme.
The means-tested concessional loan providing up to $25,374 to assist with the costs of living, learning and undertaking an apprenticeship.
Eligible recipients can access up to $845.80 per month in the first year of their apprenticeship, $634.35 per month in the second year, $422.90 per month in the third year, and $211.45 per month in the fourth year.
The government has committed funding to continue its fee-free TAFE placements, at a projected cost of $166 million in 2025-26.
It expects that 90 per cent of new jobs over the coming decade will require some kind of post-secondary schooling qualification.
Half of those will come through vocational education training (VET) pathways. Fee-free TAFE will make it easier to fill those jobs, the government believes.
Since commencing fee-free TAFE in January 2023, almost 600,000 enrolments in key priority occupations have been covered by taxpayers.
Almost 40,000 of those places were in construction-related studies.
The government has also increased the number of TAFE Centres of Excellence under the National Skills Agreement that are eligible to receive additional funding.
Also on the home-building front, the budget includes almost $50 million to support the growth of the prefabricated and modular housing industry.
“We’re backing Aussie manufacturers to build more quality houses, faster with this investment,” Industry and Science Minister Ed Husic said.
“Making a house in a factory instead of onsite can cut construction time in half.”
The government will also take the first step towards major occupational licensing reform, working with unions, employers and the states and territories on allowing electricians to work under a national license.
It would allow those tradies to move around the country without needing to obtain a costly license in each jurisdiction.
“This could set a template for broader occupational licensing reform, which the Productivity Commission estimated could increase annual GDP by $10 billion,” the budget overview read.
The budget includes tens of billions of dollars of infrastructure investment, which will support job creation, including $17.1 billion over 10 years for major road and rail projects.
It also includes a $3 billion equity boost to complete the rollout of the National Broadband Network.
“In total, we’re investing more than $120 billion in infrastructure in every state and territory over the decade,” Dr Chalmers said.
Originally published as Budget boost to spark tradie boom, including $10K cash perk for apprentices
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