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“The Government’s ambitious goal to build 1.2 million homes over the next five years implies a substantial increase in demand for skilled trades workers, and the pathway to a career in a trade is via an apprenticeship.
“The housing industry needs more skilled trades workers, and the industry needs a well-functioning apprenticeship system.
“The benefits of apprenticeships are clear. Those who complete apprenticeship based qualifications show higher rates of employment than nearly every other type of formal qualification.
“Despite this, there are too few people wanting to begin apprenticeships in construction trades. Those who do, too few are sticking with their training through to completion.
“In addition, there are too few employers willing to take on apprentices and provide the practical workplace based training.
“Delivery of the formal training component of apprenticeships must also be improved. The inability to access the formal training in a way that meets the needs of students and employers is a significant impediment to progression of apprentices.
“This issue is particularly important to apprentices and employers in regional areas where attending classes may require travelling vast distances including overnight stays.
“There have been a myriad of schemes and programs over the years aiming to support apprentices through their training, as well as incentivise businesses to create employment opportunities for apprentices. None have enjoyed enduring success.
“The review announced by Minister O’Connor today provides the Government with an opportunity to transparently evaluate the successes and failures of previous schemes and to optimise the apprenticeship incentive system for the modern economy.
"HIA is encouraged by the Government’s commitment to elevating the status of vocational education and improving outcomes for apprentices,” concluded Geordan Murray.
HIA says residential builders and trades remain cautious about hiring in 2026. Not due to a lack of housing demand, but because of mounting cost pressures, regulatory hurdles, and persistent skills shortages, according to a survey of small to medium enterprise members.
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.