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“HIA sees that there are five key aspects to addressing skill shortages in the residential building industry.
“The priority must be to support the domestic workforce; wage subsidies for apprentices are a key part of this. We need a long term commitment to the apprentice employer wage subsidy model, one that recognises the contribution the employer makes to training, is indexed, and attracts apprentice commencements and prioritises completion,” said Ms Martin.
“Generally, a small subcontractor will take on an apprentice but often the cost and red tape associated with doing so is just too much for a small business. We are eagerly awaiting the outcomes of the Government initiated Strategic Review of the Australian Apprenticeship Incentive System to provide a holistic assessment of this system.
“But growing the domestic workforce will just not give us the 83,000 workers we need to build 1.2 million homes. Skilled migration is critical, but the visa system is complex and not fit for purpose. The residential building industry needs a construction trade contractor visa tailored to suit the way work is arranged on building sites.
“We also need to attract more people into the construction industry, with a dedicated workforce development campaign to promote trades as a legitimate and rewarding career. There needs to be a concentrated effort to educate people on the benefits of a trade qualification.
“Retention is also a challenge. We consistently see high dropout rates within the first 2 years of an apprenticeship. Retention rates are much better for apprentices through industry based mentoring programs, including group training organisation, where pastoral care is a key aspect. Mentors can offer support and guidance to young people entering the workforce.
“Finally, the construction industry must become an industry of choice. Last year’s reports of unacceptable behaviour on construction sites have tarred the entire industry with a negative brush. There must be action taken to make the construction industry an attractive industry for all workers by ensuring acceptable, safe and appropriate behaviour on construction sites.
“Confidence must be restored to construction sites to attract the workers the industry desperately needs.
“HIA’s pre-budget submission, due to be released at the end of this month, will offer Government practical solutions to address skill shortages in the construction industry. We can only make housing a priority if we have a workforce capable of building the homes we need to reduce the barriers to home ownership,” concluded Ms Martin.
In mid-June 2025, the NSW Premier released the Housing and Productivity Contribution (HPC) Works-in-Kind Guideline for public consultation.
Today the State Government announced proposed changes to the regulatory powers to investigate registered builders who may be unable to meet the financial requirements of registration. The announcement also included a long-awaited review of the Home Building Contracts Act 1991 (HBCA) and associated laws.
Housing Industry Association welcomes today’s announcement by the Cook Labor Government to review key aspects of the home building contracts legislation and provide the building regulator with additional powers to work with builders in distress.
“Two cuts to the cash rate have seen the volume of detached house building approvals rise to be 3.2 per cent higher than the same month last year,” stated HIA Senior Economist Tom Devitt.