The Australian Government is offering apprentices in residential construction a $10,000 cash bonus in a new push to tackle the construction industry’s worker shortage and housing crisis.
Prime Minister Anthony Albanese is set to announce the policy at the National Press Club later today, pitching it as a win-win that helps apprentices financially while giving the struggling construction sector a much-needed boost.
“Right now, a first-year carpentry apprentice earns about two-thirds of the minimum wage. They could earn a lot more stacking shelves in their local supermarket,” Mr Albanese will say, according to early speech excerpts shared with the media.
How the bonus works
The $10,000 incentive is aimed at apprentices learning trade skills like solar panel installation or electric vehicle maintenance. It’s part of a broader government effort to strengthen the construction workforce while also gearing up for a more energy-efficient future.
On top of their wages, apprentices can claim these $2000 payments in five stages—at six months, one year, two years, three years, and upon completion, with the plan demanding a $626.9 million price tag, enough to support over 60,000 apprentices.
Denita Wawn, CEO of Master Builders Australia, welcomed the move, saying it could encourage more people to stick with their training – a big issue, with around half of all apprentices dropping out before they complete their courses.
“The new staged payments approach will hopefully see the rate of completions increase,” she said.
This initiative comes after a similar program for “green jobs” failed to gain traction, with only 2,200 apprentices signing up. To avoid a repeat, the government is casting a wider net by including all trades that involve “green” tasks in the energy sector.
Existing payments, like the $5,000 bonus for apprentices not covered by this program, will still be available until the end of 2025.
Plus, there are plans to increase the living-away-from-home allowance, which is currently $77.17 per week during the first year of training.
Big goals, big challenges
This initiative is one part of the government’s effort to tackle Australia’s housing crisis. With a target of building 1.2 million homes in five years, the construction industry needs about 90,000 additional workers.
The government is also working with states to reform planning laws, provide grants for social housing, and encourage development, but industry leaders say more needs to be done to address the root of the problem: a lack of workers.
“Labour shortages are the biggest handbrake on fixing the housing crisis,” Wawn said, adding that many small businesses in the construction industry are struggling with the high costs of hiring and training apprentices.
On the other side of the political fence, the Coalition is pitching its own housing solution, including a plan to let first-time buyers use up to $50,000 of their superannuation for a home deposit.
Critics warn this could drive up house prices further, but it’s another sign that housing will be a hot topic heading into the next election.
Is Labor leaving key industries behind?
While the bonus is good news for construction and clean energy apprentices, critics argue it leaves other industries in the dust.
Troy Williams, CEO of the Independent Tertiary Education Council Australia (ITECA), says sectors like healthcare, hospitality, agriculture, and ICT are also desperate for skilled workers.
“This initiative is a welcome boost for construction and energy careers, but it does little for industries outside these sectors, where the skills gap is just as urgent,” Williams said.
The ITECA is urging the government to take a more inclusive approach to solving the broader skills shortage, claiming that more support for small businesses that hire apprentices—and better collaboration with training providers—is essential to fix the problem across the board.
