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{{propApi.successMessage}} {{region}} Change locationHome builders left in limbo over apprentice funding
Home builders left in limbo over apprentice funding
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“Funding to support the employment and training of apprentices in the residential construction sector has only been confirmed until the end of the year, and the Federal Government is keeping tight lipped as to whether this will continue into the new year,” said HIA Managing Director, Jocelyn Martin.
“This potentially leaves uncertainty in the minds of employers and apprentices as to whether all these roles will continue into the new year. Employers are making decisions around staffing for 2026 right now, so it is essential they have certainty as to what funding will be offered.
“Australia’s number one policy challenge is to address the housing crisis, so it defies belief that funding for training new skills in this essential sector is being left up in the air.
“Employer incentives are not subsidies—they are strategic investments that underpin the entire apprenticeship system. Without businesses willing to employ and train apprentices, there is no system.
“Ideally, with a shortage of 83,000 skilled trades we would be talking about an increase in funding to support apprentices, rather than being just weeks away from a potential reduction.
Data obtained from the National Centre for Vocational Education Research (NCVER) shows a strong correlation between funding support for industry and the number of young people employed in trades apprenticeship. (see graph below)
“There is a clear pattern: when employer incentives are reduced, commencements fall; when incentives are strengthened, commencements rise.
“The reality is that employing an apprentice is a very expensive process, which typically doesn’t make a return for at least the first two years. Employers carry significant upfront costs in wages, supervision, and lost productivity during the early stages of training. Incentives help offset these costs, making it viable for businesses to take on apprentices and trainees.
“We have written to Skills Minister Giles to urge him to provide clarity for the industry and the young people that are seeking to start a career in residential construction.
“HIA is asking that the Minister immediately confirm the existing financial support to employers and apprentices will continue for the next twelve months, and at least at the current level,” concluded Ms Martin.
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