The Albanese Labor Government is building the workforce Australia needs for the future by backing apprentices to complete their trade in the residential housing sector.
The Government will provide a $10,000 incentive payment – doubling the current level of support – to encourage Australians to train for jobs in this critical sector.
The new Key Apprenticeship Program will establish a Housing Construction Apprenticeship stream in response to the Strategic Review of the Australian Apprenticeship Incentive System.
The review released today found cost-of-living pressures faced by apprentices are steering people away from taking up apprenticeships.
Labor’s plan for a Future Made in Australia is very clear: we want Australian workers to make more things here and that includes building more homes.
From July 1 2025, eligible apprentices will receive $10,000 in incentive payments, on top of their wages, over the life of their apprenticeship to work in housing construction.
Apprentices will receive $2,000 at six, 12, 24, 36 months, and at the completion of their apprenticeship.
Encouraging more people into apprenticeships will ensure we have the workforce to deliver our Homes for Australia Plan, an ambitious target to deliver 1.2 million homes over the next 5 years.
It builds on the Albanese Labor Government’s plan to support more students and trainees through expanding Free TAFE and slashing HECS fees for university students.
The Strategic Review of the Australian Apprenticeship Incentive System commenced in February 2024 and was led by Dr Iain Ross AO and Ms Lisa Paul AO PSM.
The Review looked at the Incentive System’s performance, how it can align with the broader economic and social objectives of government, and how the system can support high quality apprenticeships.
It also considered how to create a safe training environment for priority apprentice cohorts and the cost of living impacts on apprentices.
The report has drawn on past reviews, research, and input from over 145 public submissions as well as consultations with more than 600 people from across the apprenticeship system.
The Albanese Government is considering the Review’s findings and will consult stakeholders on longer-term reforms recommended by the Review to inform its response.
The Government is also taking additional immediate steps to support the Review’s most urgent recommendations and address ongoing cost-of-living pressures while it undertakes consultation:
- Maintain the 2025 Priority List and extend current Australian Apprentice Training Support and Priority Hiring Incentive payment settings by six months until 31 December 2025. This will provide consistency for employers and cost of living relief to apprentices in priority occupations during the consultation process.
- Increase the Living Away From Home Allowance from 1 July 2025 so apprentices can meet the costs associated with moving to take up an apprenticeship.
- Increase the Disability Australian Apprentice Wage Support payment from 1 July 2025 to support employers taking on apprentices with disability.
The program will allow eligible apprentices in construction occupations to receive an additional $5,000 compared to the Australian Apprenticeship Training Support Payment.
The reviewers final report is available at Strategic Review of the Australian Apprenticeship Incentive System.
Quotes attributable to the Prime Minister, Anthony Albanese:
“Building Australia’s Future is about so much more than bricks and mortar. It is about creating a better life for Australians. It’s about building better education and creating new employment opportunities.
“Our tradies are the lifeblood of our construction sector, and that’s why today we are announcing that apprentices who finish an apprenticeship in the housing sector will receive a $10,000 incentive payment.
“This will support apprentices with cost of living, while ensuring we have the skilled workforce we need to deliver our Homes for Australia plan.
“Only a Labor Government is building Australia’s future.”
Quotes attributable to the Minister for Housing and Homelessness, Clare O’Neil:
“We’re seeing more homes built now than when we were elected – and that’s due to the billons of dollars the Albanese Government has invested in programs like Free TAFE and improved support for tradies.
“More tradies means more new homes, so supporting more apprentices in construction and housing is something we need to get right.
“The long-term fix to housing is to build more homes in our cities, suburbs and regions, and that’s why we’ve started one of the biggest home building program in Australia’s history.”
Quotes attributable to the Minister for Skills and Training, Andrew Giles:
“It is essential that we get the Australian Apprenticeships system right. We need to have a system with more apprentices finishing their training and gaining the skills and qualifications that we need in our workforce.
“The Strategic Review of the Australian Apprenticeship Incentive System shows apprentices are especially exposed to the cost-of-living pressures. That’s why we are making this initial investment as a first step to help address the financial challenges apprentices and their employers face.
“This cost-of-living measure should encourage aspiring housing construction tradies to take up the call and join this critical workforce.
“Apprentices are the lifeblood of so many Australian industries. The skills they develop are vital ingredients for us to capitalise on our Future Made in Australia plan and deliver the infrastructure to achieve net zero.
“I would like to thank Dr Iain Ross AO and Ms Lisa Paul AO PSM for their comprehensive work in delivering the Review.”