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{{propApi.successMessage}} {{region}} Change locationGovernment incentives essential to support skills trade training
Government incentives essential to support skills trade training
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“Access to skilled labour is one of the most pressing issues facing the home building sector,” said Jocelyn Martin, HIA Managing Director.
“It is one of the biggest operational issues holding the industry back from contributing to meeting the nation’s housing targets, which have been set by National Cabinet.
“A recent survey of HIA’s small business members indicated that the cost and access to skilled trades were both in the top five issues placing pressure on builders.
“The survey also showed that 67 per cent of respondents said they were having trouble recruiting new staff or retaining existing workers.
“Today’s KAP data demonstrates 85 per cent of apprentices are with small businesses. Demand for apprentices by small businesses is highly sensitive to price, which reinforces the view that we need to ensure there is adequate financial support.
“Programs such as the KAP, which provides financial support to apprentices to assist them during their training, are essential to attracting prospective trades into the sector,” said Ms Martin.
“The importance of incentives that support the employers who take on apprentices should also not be underestimated.
“A trade apprentice will typically not start making a return for the business until well into their second year, and the provision of financial assistance to help defray the additional costs of training and supervision is crucial to make the equation viable for many small businesses.
“Apprentice retention also remains a challenge, therefore targeted retention programs – particularly during the first 18 months where we see a high level of drop outs – are extremely important.
“There is a clear correlation between the availability and level of incentives, and the appetite for employers to take on apprentices and for young people to consider a career in residential building.
“In our 2026/27 pre-budget submission we call on the Federal Government to commit long term to the existing incentives for both apprentices and employers,” concluded Ms Martin.
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