Budget 2024: Tradies train for free as Labor clings to hope of 1.2m homes
Labor is struggling to meet its housing goal but is hoping 20,000 new training places will help build 1.2m new dwellings over the next five years.
Labor’s bid to build 1.2 million homes in five years will be aided by a promise to offer 20,000 fee-free TAFE and pre-apprenticeship places for the housing and construction industry.
The promise is part of $6.2bn worth of new spending designed to deliver on a signature policy many industry leaders believe will be difficult to achieve amid widespread capacity constraints. The training positions will be offered across the country, coming after state governments in NSW and Victoria have sucked up substantial resources by investing heavily in infrastructure during the past decade.
This has led to shortages of labour in the housing industry at a time when demand has reached unprecedented levels.
There are concerns that Labor will be unable to meet its housing target because of high construction costs caused by the pandemic and high inflation.
Housing Minister Julie Collins said the government was aiming to help all sectors, including the underprivileged. “The budget includes $6.2bn in new investment to build more homes more quickly, bringing the Albanese government’s new housing initiatives to $32bn,’’ she said.
“The budget’s new support is part of our Homes for Australia Plan which will help meet Australia’s ambitious goal of building 1.2 million new homes from July 1.
“We know that building homes is hard work. It won’t happen overnight. But increasing supply is the best and most lasting fix to Australia’s housing shortage. We also need to help provide relief for renters who are under pressure.’’
Industry experts have warned that approvals for new homes are well below the monthly average of 20,000 needed and that the government must inject significantly more resources to meet demand.
The budget papers show Housing Australia’s net assets are forecast to rise to $1.7bn by June next year, while it will record a $280m operating loss this financial year.
As forecast before budget day, the government is offering $1bn for states and territories to build roads, energy, water and community infrastructure.
Up to $1.9bn in concessional finance for community housing providers and other charities will be provided to help deliver 40,000 homes under the Housing Australia Future Fund and National Housing Accord.
There will be a doubling of commonwealth homelessness funding to $400m every year, matched by states and territories.
Jim Chalmers said there would be an emphasis on clearing local infrastructure bottlenecks, providing more housing for students, and funding more social and affordable housing.
“More homes means more affordable homes – and a better deal for buyers, builders and renters alike,’’ the Treasurer said. “The current housing pipeline is backed up. We’ve already allocated $3.5bn to address bottlenecks and slash red tape. This budget includes another $1bn to help states and territories build more housing sooner. We will limit how many international students can be enrolled by each university based on a formula, including how much housing they build.”
