The upcoming federal budget will fund 20,000 new fee-free training positions in housing and construction sector, as industry leaders warn Australia is falling behind its goal of building 1.2 million new homes by 2029.
About $90.6 million of taxpayer funding will go towards new TAFE, VET, and pre-apprentice training courses in the 2024-2025 federal budget, according to Minister for Skills and Training Brendan O’Connor, and Minister for Housing, Homelessness, and Small Business Julie Collins.
The funding package will comprise $62.4 million for 15,000 fee-free TAFE and VET placements in construction-related fields, building on the Labor government’s existing fee-free TAFE program, which has supported more than 355,000 placements.
About $26.4 million will go to relevant pre-apprentice training programs, which are billed as introductory courses welcoming curious jobhunters to the trades.
Additionally, $1.8 million will go towards the streamlining of skills assessments for potential migrants, who may have earned relevant qualifications overseas.
The announcement arrives as the government faces serious questions about the performance of its Housing Accord, a pledge between the Commonwealth, state, and territory governments to deliver more than a million new homes by the end of the decade.
Shovels hit dirt on 38,400 dwellings in the December quarter of 2023, the Australian Bureau of Statistics says, far below the quarterly total needed to hit the 1.2 million target.
In its State of the Housing System report, handed to the federal government last week, the National Housing Supply and Affordability Council projected a shortfall of around 300,000 dwellings on the current trajectory.
Industry advocates have long circled the dearth of tradies as a contributing factor to sluggish commencement rates.
The government recognises the need to bolster the ranks of Australia’s construction sector, O’Connor said.
The investments in training will “support and strengthen Australia’s residential housing capability,” he said.
“This is a great opportunity for people to gain a trade whilst accessing government incentives and reduce cost of living pressures through more affordable housing.”
More housing supply will ease some cost of living pressures, Collins added.
“But to build more homes we need more tradies, and that is what this announcement will deliver.”
While the new tradies entering the construction sector are a concern to industry leaders, Master Builders Australia is hoping for further support in the federal budget — including for small businesses particularly susceptible to collapse in a difficult economic climate.
The budget should work to normalise rules and regulations for builders across states and territories, making it easier for builders to stay and remain compliant, Master Builders Australia CEO Denita Wawn told SmartCompany in April.
The government must ensure the latest tranches of industrial relations reform do not impede productivity in the sector, she added.
“What’s imperative is an approach grounded in common sense, emphasising quality over the sheer volume of legislation and regulation,” Wawn said.
To see SmartCompany‘s full budget coverage, click here.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
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