The say it’s a crucial measure to address the labour shortages hampering Australia’s housing goals.
The incentive aims to support the government’s target of delivering 1.2 million new homes by 2029.
Property Council Chief Executive Mike Zorbas described the initiative as an essential piece of the housing supply puzzle.
“More workers on site is essential to solving the housing supply puzzle. Hopefully, this incentive will see completion rates increase,” Mr Zorbas said.
“Australia needs more bold thinking like this as we face headwinds in getting to our important national target of 1.2 million new homes by 2029.”
HIA Managing Director Jocelyn Martin echoed the sentiment, highlighting the importance of milestone payments to boost apprenticeship retention.
“The announcement of a $10,000 incentive to boost the number of skilled workers in key housing trades is a welcomed response to the crippling labour shortages the residential building industry has been faced with for decades,” Ms Martin said.
“The five $2,000 incentive payments staggered throughout the course of an apprenticeship in the residential building industry will support the retention of an apprentice and combat the concerning non-completion rates we continue to see.”
The incentive scheme comes amid stark workforce challenges.
HIA’s All Hands On Deck report found that the construction industry must recruit 83,000 additional tradespeople to meet the Housing Accord’s ambitious goals.
Currently, the industry employs 278,000 tradies across 12 key occupations, but a 30% workforce expansion is needed to hit targets.
Ms Martin also pointed to other measures that could help tackle the crisis.
“Increasing the living away from home allowance could also see greater activity in regional areas that struggle to attract key housing trades,” she said.
“While incentive payments are a key piece to addressing skills shortages, it is just one tool in the toolkit government has to address this issue and make the delivery of housing a priority.”
The Strategic Review of the Australian Apprenticeship Incentive System, released alongside the announcement, outlined 34 recommendations, including improving employer support and expanding mentoring programs to help apprentices stay in the workforce.
Mr Zorbas stressed the need for a multi-faceted approach to meet housing targets.
“Our housing deficit is decades in the making. Labour shortages, planning delays, high property taxes, and high construction costs mean government and industry have to work together over the next ten years to make it as easy as possible to invest in and build more homes,” he said.
Both organisations agreed that attracting more skilled workers from overseas, improving accreditation processes for migrants, and creating streamlined pathways for midlife career changes into trades are vital steps toward tackling the housing crisis.
“With many skilled and qualified migrants already here, fairly and affordably matching them to building Australian homes and infrastructure is a policy no-brainer,” Mr Zorbas added.
“Equally, there should be no more delay on state government coordination to streamline formal qualifications for midlife career changes into house-building trades.”
As the housing sector grapples with labour shortages and ambitious targets, industry leaders emphasise that government and industry collaboration will be key to success.
