Prime Minister Unveils $10,000 Incentive Payment to Grow Tradesperson Workforce

Prime Minister Anthony Albanese speaks to media during a doorstop event in the Gympie Region in central Queensland in Australia on Jan. 6, 2025. AAP Image/Russell Freeman

Prime Minister Anthony Albanese has announced a $10,000 incentive payment for apprentices under the new Key Apprenticeship Program, aimed at strengthening Australia’s infrastructure workforce.

Albanese announced it during his address at the National Press Club on Jan. 24. He positioned the initiative as a critical component of the government’s broader housing strategy.

The Housing Construction Apprenticeship stream, to be launched on  July 1, 2025, is in response to a review released on Jan. 24 that found cost-of-living pressures were discouraging people from pursuing training.

Eligible apprentices will receive $10,000 in incentive payments over the course of their apprenticeship, with $2,000 provided at six, 12, 24, and 36 month intervals, and upon completion.

“We recognise the next generation of tradies, the people we’re counting on to build the new homes we need, are under significant financial pressure right now,” Albanese said.

The government stated that boosting apprenticeship numbers was essential to achieving its Homes for Australia Plan, which aims to build 1.2 million homes over the next five years.

Additionally, the government will increase the Disability Australian Apprentice Wage Support payment from July 2025 to encourage employers to hire those with disabilities.

Strategic Review and Policy Adjustments

The Strategic Review of the Australian Apprenticeship Incentive System, led by Iain Ross and Lisa Paul, began in February 2024.

The review made 34 recommendations, focusing on employer support and the role of group training organisations in helping small and medium businesses (SMEs) to hire apprentices.

The report found SMEs employ 60 percent of all apprentices.

Key recommendations include maintaining the 2025 Priority List that outlines where Australia lacks skilled workers, and extending the Australian Apprentice Training Support and Priority Hiring Incentive payment settings until Dec. 31 to support workers.

Opposition Criticises Apprenticeship Decline

Deputy Opposition Leader Sussan Ley criticised the government’s handling of apprenticeships, pointing to a decline in numbers under Labor.

She noted that Australia now has 27,000 fewer apprentices and trainees compared to the previous year.

“It’s harder than ever to be an apprentice or trainee right now, because of Labor’s cost-of-living crisis,” Ley stated.

Ley claimed that trade apprentices in-training reached record highs under the Coalition, with 429,000 apprentices in June 2022. However, this number has since fallen to 377,645, marking a decline of over 50,000 apprentices in just one year.

The Labor government continues to defend its policy, stating that these new incentives will help reverse the trend and ensure Australia meets its housing targets.

HIA Welcomes Apprentice Incentive Scheme

The Housing Industry Association (HIA) has welcomed the government’s announcement.

HIA Managing Director Jocelyn Martin described the initiative as a long-awaited response to labour shortages that have plagued the residential building industry for decades.

Martin highlighted that the five staggered $2,000 payments throughout an apprenticeship would help improve retention rates and deal with non-completions.

“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,” Martin added.

According to HIA, Australia can only reach the Housing Accord target of 1.2 million homes in the next five years if it’s able to inject 83,000 trades people into the workforce.