AUSTRALIA’S struggling housing sector faces a fresh setback, with employers and apprentices left in limbo as funding for training and employment support remains unconfirmed beyond Christmas, the Housing Industry Association (HIA) warns.
HIA Managing Director Jocelyn Martin said funding that underpins the residential construction apprenticeship pipeline has only been guaranteed until the end of 2025, leaving the industry concerned about the year ahead.
“This potentially leaves uncertainty in the minds of employers and apprentices as to whether all these roles will continue into the new year,” Ms Martin said.
“Employers are making staffing decisions for 2026 right now, so it is essential that they have certainty as to what funding will be offered.”
With Australia falling behind on national housing targets, Ms Martin said it “defies belief” that continued support for apprentices – the future workforce needed to deliver new homes – has not yet been confirmed.
“Employer incentives are not subsidies – they are strategic investments that underpin the entire apprenticeship system. Without businesses willing to employ and train apprentices, there is no system,” she said.
Industry data shows that Australia is short around 83,000 skilled tradespeople, heightening the need for new apprentices to enter the workforce.
Yet according to figures from the National Centre for Vocational Education Research (NCVER), apprentice commencement rates closely match the level of funding support available.
“There is a clear pattern – when employer incentives are reduced, commencements fall; when incentives are strengthened, commencements rise,” Ms Martin said.
She said employing an apprentice is an “expensive process” that generally does not deliver a return for the first two years, with employers absorbing upfront costs relating to wages, supervision, and reduced productivity. Incentives help make these roles viable, she said.
The HIA has written to Skills Minister Brendan O’Connor urging immediate clarity for employers and prospective apprentices.
“HIA is asking that the Minister immediately confirm the existing financial support to employers and apprentices will continue for the next 12 months, and at least at the current level,” Ms Martin said.
