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The announcement includes an extension of the $10,000 Keeping Apprenticeship Program and continuation of the Priority Hiring Incentive for employers for a further 12 months while the Australian Apprenticeship Scheme Review is completed.
“These are welcomed responses to the crippling labour shortages in the housing industry and will play a vital role in providing employers and apprentices with much needed certainty and stability in attracting the school leavers of 2025.
“The number one challenge every builder or tradie is facing around the country is skills shortages and without the workers, the homes Australia needs will remain a pipe dream.
“HIA’s recent All Hands On Deck report found that if Australia is to reach the Housing Accord target of 1.2 million homes there needs to be an injection of 83,000 trades people.
“HIA has long called for targeted apprentice incentives to grow and maintain the domestic workforce alongside employer support to take on new apprentices, as critical interjections to reverse this decline and boost workforce numbers.
“The current Keeping Apprenticeship Program (KAP) has been a key tool to help address apprentice attraction and retention in a highly competitive jobs market.
“HIA strongly advocated on the need for targeted milestone payments throughout an apprenticeship to support higher retention and completion rates and it is pleasing to see the successful KAP scheme extended.
“The Priority Hiring Incentive is even more important. Without an employer, there is no apprentice, and the continuation of current financial incentives are invaluable in helping the construction industry to access more workers.
“Employer incentives are strategic investments that underpin the entire apprenticeship system. Without businesses willing to employ and train apprentices, there is no system.
“There is a clear pattern: when employer incentives are increased and maintained, commencements rise; when incentives are reduced or removed, apprentice numbers dive.
“HIA has advocated extensively on the critical need for continuation of these important incentive programs to boost construction workforce numbers as the shortage of skilled trades remains more acute than at any time prior to the pandemic or before.
“Australia’s number one policy challenge is to address the housing crisis. Today’s announcements are critical steps forward on the path to accessing more skills into the industry that will deliver more homes in 2026 and beyond,” concluded Ms Martin.
Workplace laws are set for more changes in 2026.
Australia’s residential building industry has entered the new year with confidence still on shaky ground for small businesses as rising costs and policy uncertainty continue to cloud the outlook.
Tasmania’s housing market slowed in November, with building approvals falling sharply compared to October. Approvals for new homes dropped almost 20 per cent, and even after seasonal adjustment, the decline was 5.8 per cent.
Australia’s home building industry is expected to strengthen through 2026, supported by gradually improving building approvals and a recovery in demand, but the pace of growth will ultimately depend on how quickly interest rates can fall further, according to the Housing Industry Association.