Housing Industry Association calls for urgent overhaul
The federal government will fail to reach its target of building 1.2 million homes over the next five years unless it introduces major policy changes, the peak housing body has warned.
The federal government will fail to reach its target of building 1.2 million homes over the next five years amid the ongoing challenges facing the construction sector unless it introduces a raft of immediate policy changes in the next budget, the peak housing body has warned.
In its budget submission, the Housing Industry Association said Labor needed to index apprentice and employer subsidies, launch a 12-month campaign to better attract more graduates into the building industry, fund a new “construction trade contractor visa”, and streamline existing visas for overseas workers who could fill shortages.
“Too often doing a trade or going into construction is seen as a lesser career option, and we are calling on the federal government to instigate a widespread education program to better promote the substantive career opportunities that exist in the building industry,” HIA managing director Jocelyn Martin said.
“As well as policies to help attract apprentices, meaningful reform to the immigration system needs to be implemented to replenish the dwindling supply of skilled workers. This should include developing a streamlined and simplified visa program for in-demand trades and support this with an education and awareness program to assist participants navigate the process.”
Mature age workers also needed to be better targeted with specific subsidies that would adequately bridge any “wage shortfall” while they trained to work in the construction industry.
“The government should … consider reinstating financial supports for employers taking on adult apprentices. The structure of apprentice wages sees adult apprentices, those aged over 21, paid a higher rate of pay regardless of their progression through an apprenticeship,” the HIA submission said.
To incentivise apprentices to continue with their training, the HIA proposed “tool bonuses” or a “tool rewards program”.
“As an incentive for year on year completion, milestone tool vouchers (would) gradually build up their tool kits to enable them to be self-sufficient,” the submission said.
The program would provide a $1000 tool bonus program starter kit and a $500 supplement per year.
“HIA has called on the government to implement a multi-pronged approach to bring many more skilled tradespeople and other key workers into the industry,” Ms Martin said.
“A strong construction workforce is the only way that Australia will ever solve the problem of housing affordability. If the Australian government is to realise its bold goal of 1.2 million much needed homes in five years, HIA strongly recommends the government adopt the recommendations in its submission.”
It comes as the Property Council warned the country’s housing supply was “facing grave headwinds” in 2024, including bad weather, rising material and labour inputs, falling construction productivity, and ongoing labour market competition.
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