Payment boost for construction apprentices coming in July

In an effort to alleviate the housing crisis, the Albanese Government has acknowledged the critical need to address the persistent shortage of tradespeople in Australia. 

From 1 July 2025, eligible apprentices in the residential construction sector will receive $10,000 in incentive payments, on top of their wages under a new Key Apprentices Program. The new payment will be staged at 6, 12, 24, 36 and upon completion which is something Master Builders has long called for. 

“We certainly find that only 50 per cent of people complete their apprenticeship, which is of significant concern. And we know it's about money. We also know that it's about ensuring that we have appropriate mentoring in place,” recently said Denita Wawn in an interview with Ross Sally for ABC Canberra. 

Apprentices in the building and construction industry currently receive a $5,000 payment, which is front-loaded. This payment will remain available for apprentices who are not eligible for the Key Apprentices Program and has been extended until the end of 2025.

“Australia’s building and construction industry faces the enormous task of building enough homes, commercial premises and infrastructure to meet increasing demand and a growing population,” said Master Builders Australia CEO Denita Wawn. 

“Labour shortages are currently the biggest handbrake on fixing the housing crisis.

“Coupled with government funding of free vocational education and training, there is no better time to pick up the tools and become a tradie.

“The revised staggering of payments is something Master Builders Australia has long called for, so there is a financial incentive for apprentices to complete their training.

"Around 50 per cent of all apprentices do not complete their training - the new staged payments approach will hopefully see the rate of completions increase. 

“Builders would like to see this payment expanded to other areas of the building and construction industry that are also facing chronic shortages and crying out for more apprentices. Without roads, rail, sewerage and water we can’t build more homes for Aussies.

“We are disappointed that the high costs associated with hiring and training and apprentices has not been recognised as yet. 98 per cent of businesses in building and construction are small and they are doing it tough.

"Master Builders continues to call for a robust incentive system that supports employers and minimises the risk with taking on an apprentice who may or may not complete their training.”

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