Call for employer incentives as apprentices get boost

From July, eligible tradies-in-training in housing construction or clean energy will receive $10,000, paid in $2000 instalments at the six, 12, 24 and 36-month milestones, and upon completion.

The prime minister has recognised tradies relied on to build new homes are under financial pressure. (Dan Himbrechts/AAP PHOTOS)

While the announcement has received broad support from the Australian Council of Trade Unions alongside business and property groups, there are concerns it does not go far enough.

Not enough is being done to motivate employers, Business Council of Australia chief executive Bran Black has said.

"A new approach is needed to reflect the real cost of taking on a young trainee," he said.

"Business plays a vital role in training, and so it follows that if incentives aren't increased for employers, we'll see fewer employment opportunities offered, which will ultimately exacerbate our nation-wide skills gaps."

It also is not clear that the program would attract more workers.

The announcement is an expansion of a pre-existing incentive for apprentices in renewable energy, but a year after this was unveiled, less than 20 per cent of spots have been taken up.

The Housing Industry Association welcomed the incentives but managing director Jocelyn Martin noted they were just "one tool in the toolkit" and has previously said the government's focus on fee-free TAFE was "distracting from the real issue facing the supply of housing".

Property Council chief executive Mike Zorbas said boosting apprenticeship numbers is essential to solving the housing supply puzzle.

"Australia needs more bold thinking like this as we face headwinds in getting to our important national target of 1.2 million new homes," he said.

But Master Builders Australia chief executive Denita Wawn insists there is "no better time to pick up the tools and become a tradie".

This is the first time the allowance has been increased since 2003.

"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," Prime Minister Anthony Albanese will say in his speech on Friday.

"Too many leave training, because they can't afford to stay.

"More new homes, more new energy and more support for the tradies who will build both."

A $626 million commitment for apprentices is the first time the allowance has increased since 2003. (Lukas Coch/AAP PHOTOS)

Opposition Leader Peter Dutton said close to zero of the 1.2 million homes the government promised had actually been built. 

"It just hasn't happened, and that's why people are feeling the crunch," he told Nine's Today.

"They can't rent a house, they can't buy a house and people are right to be angry."

Mr Albanese has previously used his beginning-of-year press club address to unveil major reforms.

During his 2024 speech, the prime minister revealed he would rejig stage-three tax cuts to provide more for middle-income earners after promising to deliver the former coalition government's original plan.

With voters set to hit the ballot boxes before May 17, Mr Albanese is expected to use the upcoming opportunity as a pre-election launching pad.

He has spent the first weeks of the year courting voters across the country with infrastructure funding and a promise to "build Australia's future".

Cost of living is expected to be at the front of voters' minds.

Though the government has provided relief through changes to prescriptions, energy bill help and other policies, polling suggests Australians have grown increasingly disillusioned with Labor.

Many have instead turned to independents and minor parties, increasing the likelihood of a minority government.