Backing apprentices is key to fixing the housing crisis

By Denita Wawn, CEO Master Builders Australia 

Australia’s building and construction industry faces the enormous task of delivering the homes, infrastructure, and services needed to meet the demands of a growing population. Labour shortages remain the biggest handbrake on this ambition.

Over the next five years, the industry will require more than 500,000 new entrants to replace those retiring and to expand its workforce sufficiently to meet future housing and infrastructure needs. With both major parties clamping down on migration rates, our domestic pipeline will need to do the heavy lifting.

Every extra apprentice gets us closer to meeting our workforce and housing goals.

We must do more to attract and retain apprentices in our industry. There is a real problem where too many kids are being encouraged into university over vocational education, and of those that do start a trade, around 50 per cent don’t complete their training.

That’s not good enough—not for industry, not for young people, and certainly not for Australia’s housing future and economy.

If we don’t turn this around, prolonged labour shortages could strip $57 billion from our GDP over the next five years.

Master Builders has long advocated for stronger incentives for both apprentices and employers, and it’s encouraging to see both major parties stepping up.

Labor’s Key Apprenticeship Program will provide some residential construction apprentices a $10,000 staged payment from 1 July 2025. The staggered payment structure, which provides a meaningful incentive for apprentices to complete their training is something Master Builders has long called for.

We do remain concerned that the high costs of employing and training apprentices—especially for small businesses—have not yet been adequately addressed. With 98 per cent of construction businesses being small, they need support too.

The Coalition has committed to a two-year, 10 per cent wage subsidy (up to $12,000) for small and medium-sized businesses hiring apprentices in priority occupations, alongside their matched $10,000 apprentice payment. These are sensible, targeted measures that recognise the real costs small businesses also face and the ALP should matches this.

However, incentives alone won’t solve the problem.

We must shift the cultural mindset that sees university as the only path to success. Apprentices are paid to learn, gaining practical skills that lead to high-demand careers. We need to overhaul careers education, embed vocational pathways earlier in schools, expand support for women in trades, and improve wraparound support like mentoring and pastoral care.

Fixing the housing crisis starts with people. It’s time for governments, industry, schools, and communities to work together to ensure we can support the next generation of builders and tradies to pick up the tools and help build more homes for Aussies.