Prime Minister Anthony Albanese has made an election year move to support apprentices working in residential construction by offering a $10,000 cash bonus for apprentices.

With the industry struggling with serious workforce shortages this policy aims to build the nation’s construction capacity.

The $10,000 bonus is part of the government’s plan to boost the number of skilled workers needed to build the 1.2 million new homes pledged by the National Cabinet.

How will it work?

Apprentices, including bricklayers, carpenters, electricians, and plumbers, who are learning the ropes in residential construction will receive the $10,000 in five separate payments of $2,000 over the course of their training.

That’s in addition to the pay they’re already earning from their employers.

In his National Press Club announcement Mr Albanese said too many apprentices leave training, because they can’t afford to stay.

“Right now, a first-year carpentry apprentice earns about two-thirds of the minimum wage,” Mr Albanese said.

“We recognise the next generation of tradies, the people we’re counting on to build the new homes we need, are under significant financial pressure.”

The idea is to give apprentices the financial support they need to stick with their training and stay in the construction industry, the question is whether it will make an impact.

Will it work? What do builders think about the proposal?

Duayne Pearce from D Pearce Constructions, and co-founder of builder program Live, Life, Build, questions the effectiveness of the proposed scheme. 

“I think as always with these things they come out with, they need to do more industry homework and get on the ground and talk to people living it day to day,” Mr Pearce said.

“We already know from employing dozens of apprentices over the years that the money when given to them doesn’t get spent on what it should be spent on.

“We end up with apprentices who don’t spend the money on tools so the trades on the site get the shits because the apprentices use their tools.

“It would be better if that money was to go to me as an employer so I could meet my apprentice at a tool shop and load him up with the gear he actually needs to do his job correctly, and also book him into additional training seminars and the like.”

HIA Managing Director Jocelyn Martin welcomed the Prime Minister’s promise.

“The five $2,000 incentive payments will support the retention of an apprentice and combat the concerning non-completion rates we continue to see,” Ms Martin said.

“We need to attract more people to careers in the construction industry, we need to ensure that there are enough employers creating the employment opportunities and providing the on-site work experience, and we need well-resourced VET providers delivering high quality training.”