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Budget earmarks $90.6m to boost construction workforce

By Juliet Helmke
09 May 2024 | 6 minute read
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Fee-free TAFE funding and support for streamlining skilled migrant visas are two budget measures the government is including in its “big focus on housing”.

In an effort to remove the cost barriers to education and training for construction careers, the government has announced it will stump up $88.8 million for 20,000 additional Fee-free TAFE training places to increase the pipeline of workers for construction and housing.

That includes $62.4 million to flow to the states and territories to deliver an additional 15,000 Fee-free TAFE and VET places over two years from 1 January 2025, as well as $26.4 million to create approximately 5,000 places in pre-apprenticeship programs over the same period.

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Beyond that $1.8 million will be devoted to simplifying skills assessments for around 1,900 potential migrants from countries with comparable qualifications who want to work in Australia’s construction and housing sector, and prioritise the processing of around 2,600 skills assessments through Trades Recognition Australia in high-need occupations.

Minister for Skills and Training, Brendan O’Connor, commented that enabling residential construction had been added as a priority to the government’s national skills agenda, and he felt this funding would deliver on that mission.

“This is a great opportunity for people to gain a trade while accessing government incentives and reduce cost-of-living pressures through more affordable housing,” O’Connor said.

The announcement was warmly received by housing and construction industry representatives, who had petitioned for skills funding in pre-budget submissions.

Housing Industry Association managing director, Jocelyn Martin, said it was “pleasing to see the budget commitment to start to address these skills shortages in our sector as well as the recognition of this as a key area of government’s focus going forward”.

Beyond the financial boost, Martin said that the acknowledgment of the sector’s needs was welcome and needed.

“We recognise the challenges brought about by the lack of skills won’t be fixed overnight, but it’s encouraging to see dedicated government funding to help bring more workers into the industry.”

Martin also noted that the organisation had hoped to hear an announcement that the government would continue financial incentives for employers taking on apprentices.

“Without an employer, there is no apprentice, and the financial incentives currently in place that have encouraged the employment of an apprentice and improve retention have proved invaluable to helping the construction industry to access more workers,” she said.

Master Builders CEO, Denita Wawn, meanwhile, stressed that workforce shortages remained “the biggest source of cost pressure and disruption for the building and construction industry”.

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

Noting that the organisation had worked closely on these policies, Wawn thanked O’Connor and Housing Minister Julie Collins for responding to the industry’s needs.

“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,” she said.

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ABOUT THE AUTHOR


Juliet Helmke

Based in Sydney, Juliet Helmke has a broad range of reporting and editorial experience across the areas of business, technology, entertainment and the arts. She was formerly Senior Editor at The New York Observer.

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