In a significant move to bolster the construction workforce, the Albanese government has announced a $90 million construction workforce package in the upcoming federal budget. This initiative aims to provide free pre-apprenticeship programs for high school students, facilitating early entry into trades such as carpentry, plumbing, and electrotechnology.

About 5,000 TAFE and VET courses will be accessible at no cost for Year 11 and 12 students, potentially reducing their study time by 600 to 1,200 hours. Additionally, the government plans to invest $26.4 million to eliminate course fees, saving students up to $2,600. The package also includes a $62.4 million allocation for 15,000 fee-free courses for post-school apprentices and a $1.8 million investment to streamline skills assessments for potential migrant workers, aiming to address the acute workforce shortages highlighted by Master Builders Australia's CEO, Denita Wawn. Wawn emphasised that workforce shortages are a significant cost pressure, noting the high industry exit rate and the insufficient replacement rate of workers.

Key points:

• The federal government will invest $90.6 million in the construction workforce, introducing free pre-apprenticeship programs for high school students.
• About 5,000 TAFE and VET courses in essential trades will be free for Year 11 and 12 students.
• Additional investments include $26.4 million for fee eliminations and $62.4 million for 15,000 post-school fee-free courses.
• Measures are also in place to streamline the assessment process for approximately 1,900 migrant workers in the construction sector.
• Denita Wawn from Master Builders Australia highlighted the critical workforce shortages as a major cost factor for the industry.

Master Builders Australia Media Release

Today, the Federal Government has taken meaningful steps to reduce barriers to growing the building and construction workforce, according to Master Builders Australia CEO Denita Wawn.

“Master Builders has long advocated that we must do more to boost our domestic capacity and make it easier for migrants to work in the industry.

“We have worked closely with the government to make these policies a reality and thank Minister O’Connor and Minister Collins for responding to our concerns.

“If we are going to have any chance of building enough homes we have to prioritise capacity building of the industry.

“Workforce shortages remain the biggest source of cost pressure and disruption for the building and construction industry.

“Despite a sizeable workforce of 1.35 million Australians, the industry has an annual exit rate of eight per cent, and we are only replacing half of those people per year.

“Our recent report into productivity found prolonged labour shortages are reducing industry output by $50 billion dollars and thousands of homes over the next five years.”

In its pre-budget submissions, Master Builders put forward several policy proposals to increase participation in the industry.

Ms Wawn added: “The announcement of Fee-Free TAFE and VET places rightfully recognises the role of not-for-profit industry-led registered training organisations in training the next generation of tradies.

“It’s now up to state and territory governments to ensure industry-run RTOs are held on equal footing with TAFE.

“Industry-run RTOs like those run by Master Builders associations around the country have excellent retention and completion rates, provide pastoral care and support to apprentices that help them find success in their trade.

“We know in the short-term the domestic workforce cannot keep up with demand. Skilled migration represents a vital piece of the puzzle.

“The investment into prioritising and streamlining skills assessments for potential migrants and those already in the country is welcome news.

“For many migrants, it is simply too hard to have their professional capacity recognised to work in a trade in Australia, and they are instead in roles that present fewer hurdles to obtain.

“The Parkinson Migration Review found skills assessments or qualification recognition can take up to 18 months and cost nearly $10,000; time and money people simply don’t have in this economic climate.

“There is still a long way to go and Master Builders will continue to work closely with the government to ensure we make the building and construction industry as attractive as possible.”