HIA Calls for Long-Term Commitment to Apprenticeship Incentives

The Housing Industry Association has welcomed new data showing a steady uptake of incentives under the Key Apprenticeship Program, reinforcing the critical role government support plays in building Australia’s future skilled workforce.

According to HIA Managing Director Jocelyn Martin, access to skilled labour remains one of the most pressing challenges facing the home building sector.

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She said labour shortages are among the biggest operational constraints preventing the industry from contributing fully to national housing targets set by National Cabinet.

A recent survey of HIA’s small business members found that both the cost of skilled trades and access to them ranked among the top five pressures on builders. Notably, 67 per cent of respondents reported difficulty recruiting new staff or retaining existing workers, underscoring the urgency of workforce development measures.

The latest data from the Key Apprenticeship Program shows that 85 per cent of apprentices supported under the scheme are employed by small businesses. Ms Martin noted that demand for apprentices among small operators is highly sensitive to cost, highlighting the importance of adequate financial assistance.

“Programs such as the KAP, which provide financial support to apprentices during their training, are essential to attracting prospective trades into the sector,” she said.

She also emphasised that employer incentives are equally critical. Apprentices typically do not generate a return for their employer until well into their second year. Financial assistance helps offset the additional costs of supervision and training, making it more viable for small businesses to take on and retain apprentices.

Retention remains another significant hurdle, particularly within the first 18 months of training when drop-out rates are highest. Targeted retention initiatives during this period are vital to ensuring apprentices complete their qualifications and transition into the workforce.

In its 2026–27 pre-budget submission, HIA has called on the Federal Government to commit to long-term funding for existing apprenticeship incentives for both apprentices and employers. The association argues there is a clear link between the availability of incentives and the willingness of businesses to hire, as well as young people’s interest in pursuing careers in residential construction.

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