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Date: 24 January 2025, 9:30am AEDT
Speakers: Denita Wawn, CEO Master Builders Australia
Topics: Apprenticeship incentives; housing targets
E&OE
Lorna Dunkley, host ABC News: More on our top story now that $10,000 incentive for apprentices. Prime Minister Anthony Albanese will unveil the initiative as part of a pre-election speech at the National Press Club later on today, and it does expand the previously announced incentive for clean energy sector apprentices. I’m joined now by Master Builders Australia chief executive, Denita Wawn. Denita, hi there, will this make a difference do you think?
Denita Wawn, CEO Master Builders Australia: Yes, it will. It will be a significant assistance to us, as we not only attract apprentices, but also retain them and ensure that they complete their training. The assistance will be paid in instalments throughout the apprenticeship and will certainly help apprentices as they are focused on buying a ute, buying those tools and so forth. We’ve got a massive shortage of people to work in the sector, particularly in the trades, so this is a welcome relief and a good start to resolving this housing crisis that is facing us at the moment.
Lorna: Denita, what is the retention rate of apprentices?
Denita: Unfortunately, we see around about a 50 per cent completion rate from those who commence, which is simply not good enough. We know that there are a variety of reasons why they do not complete, but unfortunately, we’ve got to focus on the key issues, and one is finances. Particularly for those unexpected costs in completing your apprenticeship. So, while they get paid to train, which is fantastic, nevertheless, there are additional upfront costs. And certainly this will be a relief, but there’s more to be done in attracting apprentices, including the fact that only four per cent of our trades are women, and so we need to not only attract but also retain women as tradies as well.
Lorna: There’s a living away from home bonus included in this announcement. Why would that be included?
Denita: Well, it’s important to recognise that in some instances, particularly those in regional Australia, that there’s not a huge amount of work in comparison to larger towns and cities. And so, as a consequence, just like training for university, the government is recognising the living away from home allowance. And I think this is really important recognition that we need to be supporting our trade training just as much as we’re focusing on university education. And it’s important, when you look at the massive career opportunities in our sector, that we have that support from government as we try and resolve this housing crisis. 1.2 million homes need to be built in the next five years to meet our housing crisis, we’re going to fall short, and this is certainly a step in the right direction.
Lorna: As I mentioned, there is already a scheme that deals with green jobs, if you like, green apprenticeships, only 2,000 or something has been taken up on that. I mean, is it a non-starter when that scheme hasn’t seen the uptake?
Denita: Well, the big issue is that, unfortunately, trades generally have been treated as a bit of a second class citizen in this country for decades, and the industry, as well as governments, needs to resolve that issue. People don’t see that as a benefit. But certainly, when you think about it, a four year apprenticeship, you get paid to train. You get things like the 10,000 incentive, you have huge job opportunities afterwards with good pay, as opposed to a four year uni degree with a massive HECS debt and AI at your, you know, on your shoulders. So, I know as a parent what I’d be encouraging my kids to do, particularly when it comes to what their future is looking like.
Lorna: 1.2 million new homes by 2029 is the aim. How realistic is that?
Denita: Well, at the moment, unfortunately, Master Builders Australia is forecasting that we will fall short by about 200,000, but the more concerning figure when you look at the housing approval numbers from this week, that we’re actually now forecasting we’ll probably fall short by about 350,000 if we continue with the smaller numbers of construction. So, in terms of resolving that, we don’t just need to focus on skilled people in the industry. We need a bigger, stronger economy. It’s critical that we resolve these inflationary pressures and also issues around interest rates. If we’re going to meet that target, we need high rise and medium rise dwellings, and there is simply not enough private investment because the numbers don’t stack up for that investment decision. Construction costs have increased by 40 per cent. Productivity has declined by 20 per cent. They are the key issues that we’ll be focusing on with both major parties in the lead up to the next election.
Lorna: Denita Wawn, Master Builders Australia, chief executive. Thank you.
Denita: Thank you.
Media contact:
Dee Zegarac
National Director, Media & Public Affairs
0400 493 071
dee.zegarac@masterbuilders.com.au