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In a bid to increase the number of Aussie apprentices, the Albanese government has announced a policy that will see new apprentices in housing construction and clean energy pocket $10,000.
The recent release of the Strategic Review of the Australian Apprenticeship Incentive System has confirmed that the Albanese government will go ahead with its $10,000 wage bonus for apprentices who decide to enter housing construction or clean energy.
Set to come into place on 1 July 2025, the bonus hopes to incentivise eligible apprentices to enter crucial industries where workforces have dwindled. Over the course of five years, apprentices will receive five $2,000 payments, supplementing their wages throughout their tenure.
According to the review, the payments aim to ease cost-of-living pressures, increase apprenticeship completion rates and build a long-term pipeline of skilled workers in housing construction and the clean energy industry.
The Australian Council of Trade Unions (ACTU) applauded the policy, saying it will be a boost towards the government’s goal of building 1.2 million homes in five years under the Homes for Australia initiative.
“Unions hear from apprentices across Australia that the biggest barrier holding them back are low wages. You can’t address [the] cost of living without a plan for wages, and that’s why today’s announcement of a $10,000 wage bonus is so important,” said ACTU assistant secretary Liam O’Brien.
“Thousands of young Australians, especially in our outer suburbs and regions, make huge sacrifices to pursue an apprenticeship so they can get ahead. The $10,000 wage bonus will go a long way in easing their cost of living so they can build Australia’s future.”
Master Builders Australia also welcomed the review, recognising the challenges that employers face in attracting and retaining employees.
“Labour shortages are currently the biggest handbrake on fixing the housing crisis,” said Master Builders Australia chief executive Denita Wawn.
The builders association, however, argued that these incentives must be geared towards assisting SMEs, ensuring that there is insurance for employers who take the leap of faith to train an apprentice.
“Employing an apprentice comes at a cost. Not just their wage, but the hours spent teaching them, covering their training costs, and managing the associated administration, and helping them navigate the workforce, which all adds up,” Wawn said.
“A robust incentive system must provide assurance and minimise risk. It should mean that the employer does not shoulder the entire cost burden for the 50 per cent of apprentices who do not complete their studies.
“A better incentive system should free an employer to focus on training and teaching: this is especially important in the first and second years.”
Despite the wariness of Master Builders towards these incentives, the ACTU proclaimed its allegiance with the Albanese government, stating that tradies across Australia “finally have a government on their side”.
“The Albanese government’s expansion of Free TAFE and their boosting of apprentice wages will help repair Australia’s skills and training sector after a decade of cuts and closures from Peter Dutton’s Coalition,” said O’Brien.
“Tradies finally have a government that is on their side and actually cares about investing in their future.”
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
