A new $10,000 wage bonus to home-building apprentices has been slammed as a “band-aid” approach by a peak manufacturing body in the South East.
Last week, the Government announced a doubling of the wage incentive from 1 July to encourage more apprentices into the housing sector.
From July 1, eligible apprentices will receive $2,000 at six, 12, 24, 36 months, and at the completion of their apprenticeship.
A recent Strategic Review of the Australian Apprenticeship Incentive Scheme had found cost of living pressures were a key factor in Australians not pursuing apprenticeships.
In response to the findings, the Government will also be raising the allowance paid to apprentices living away from home for the first time since 2003.
The changes are estimated to help about 1745 apprentices and trainees in the Bruce electorate.
“For too long apprentices have earnt far too little, all while being asked to pay for their own tools, safety gear and clothing,” Bruce MP Julian Hill said.
“The Government is serious about skilling Australians for the jobs of the future through initiatives like Fee Free TAFE and now the $10,000 incentive payment for apprentices in the housing sector.
“This will mean more bricklayers, plumbers and carpenters to deliver Labor’s bold goal of 1.2 million new homes by 2030.”
In response, South East Melbourne Manufacturers Alliance (SEMMA) said the incentives would not solve the skills crisis or help meet the home-building quota.
“The government has ignored the supply chain with this band-aid approach,” chief executive Honi Walker said.
“If manufacturing doesn’t have the apprentices – the skilled people to produce the building componentry needed – like trusses, metal fixings and piping as well as windows and doors, how can we meet demand?
“We need a ‘whole-of-industry’ approach to solve this problem.”
The incentives would “do nothing” to encourage young people to take up apprenticeships, Walker said.
“Better pay for apprentices from the outset is what is needed as is a government willing to back their local manufacturers with our sovereign capability within our supply chain.”
Independent Tertiary Education Council Australia also expressed concern.
It stated the incentives ignored skills gaps in other critical industries such as agriculture, health, aged care, vehicle repair, ICT, tourism, hospitality and the resources sector.
Union body ACTU welcomed the wage incentives.
“Unions hear from apprentices across Australia that the biggest barrier holding them back are low wages,” ACTU assistant secretary Liam O’Brien.
“Thousands of young Australians, especially in our outer suburbs and regions, make huge sacrifices to pursue an apprenticeship so they can get ahead.
“The $10,000 wage bonus will go a long way in easing their cost-of-living so they can build Australia’s future.”
Skills and Training Minister Andrew Giles said the strategic review showed apprentices were especially exposed to cost-of-living pressure.
“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.”
Housing and Homelessness Minister Clare O’Neil said more homes were being built because of 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.”
