Australia is already short more than 83,000 construction workers, and small and family run businesses - the backbone of Victoria’s residential building industry - provide most apprenticeship opportunities. 

HIA says imposing a new licensing regime on these businesses will discourage participation in the apprenticeship system and worsen workforce shortages.

HIA Executive Director Victoria Keith Ryan said existing laws already provide a comprehensive framework for apprentice employment and supervision, with clear employer responsibilities and established processes to ensure appropriate training, support and oversight. 

“Before introducing another layer of regulation, the Government must demonstrate that current arrangements are failing and that a licensing scheme will improve apprentice outcomes. To date, no such evidence has been presented that licensing would deliver any material benefit and, based on the evidence available, it is unlikely that one will be,” Mr Ryan said.

HIA warns the proposal will increase administrative complexity, add costs and create uncertainty for small businesses already operating in one of Australia’s most heavily regulated sectors.

“At a time when industry is being asked to train more apprentices than ever before, this proposal sends the wrong message. It risks reducing apprenticeship opportunities, worsening skill shortages and increasing housing costs,” Mr Ryan said.

HIA is receiving consistent negative feedback from its members on this proposal, with one member stating: 

“If this is the case, we would no longer employ apprentices in our company. The costs that are associated with having an apprentice is already becoming unsustainable.”

HIA is urging the Victorian Government to work with industry on practical measures that support employers and apprentices - including reducing administrative burdens, strengthening mentoring, improving retention and providing targeted incentives.

HIA requests an urgent meeting with the Government and Opposition to outline industry deep concerns and discuss alternative approaches that encourage apprenticeship growth and support Victoria’s future housing needs.

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