HIA urges Federal Government to address trades shortage in upcoming Budget
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Photo by Arina Krasnikova
The Housing Industry Association (HIA) has issued a pressing call to the Federal Government, urging it to tackle Australia’s acute shortage of skilled tradespeople and apprentices in the forthcoming Budget. The HIA warns that without decisive action, the country’s ambitious housing supply targets may remain unmet.
Simon Croft, HIA Chief Executive Industry & Policy, highlighted the gravity of the situation, stating, “Australia simply cannot meet its housing needs without a significantly larger and more sustainable construction workforce.” The shortage of skilled workers is not just a looming concern but a present constraint affecting the entire home building and renovation sector across the nation. “Speak to any builder anywhere in Australia and they will tell you the same thing – the single biggest challenge to delivering more homes is access to skilled workers and apprentices,” Croft emphasised.
The HIA’s Federal Budget submission underscores the persistent demand for skilled trades, which has consistently outpaced supply. The association points to critical shortages in carpentry, bricklaying, plumbing, electrical trades, and other essential residential construction occupations. Compounding the issue is an ageing workforce, declining apprentice commencements, and increased competition for skilled labour across various sectors.
In response, the HIA is advocating for the Government to implement practical and targeted measures to rejuvenate the residential construction workforce. Among the proposed initiatives are boosting apprentice commencements and completions through enhanced employer incentives, improved wage support, and reducing regulatory complexities for small and medium businesses.
“Around 90 per cent of residential builders are small businesses. If we want more apprentices, we must better support the employers who take them on and reduce the financial burden and red tape associated with training,” Croft explained. This call to action reflects the reality that small builders and tradies, who train the majority of apprentices, are currently facing rising cost pressures.
The HIA also recommends expanding and fast-tracking skilled migration pathways for residential construction trades. This would involve aligning occupations lists, visa processing, and qualification recognition with industry needs. Additionally, increasing investment in vocational education and training, including industry-led job-ready training and ‘try-a-trade’ pre-apprenticeship programs, is seen as essential.
Croft further articulated the need for a coordinated, long-term workforce strategy that aligns housing policy, infrastructure investment, migration settings, and training systems. “Stop-start policies and short-term funding announcements do not build a workforce. A credible housing supply strategy requires a sustained commitment to growing skilled trades over the next decade and beyond,” he stated.
The urgency of the situation is underscored by the Government’s ambitious goals to significantly increase housing supply. However, without a robust workforce to support these targets, the goals may remain elusive. The HIA’s recommendations aim to reduce the cost and risk of employing apprentices, particularly for small builders and tradies, and ensure that the construction workforce can meet the demands of a growing housing market.
“The upcoming Federal Budget will be a critical test of the Government’s commitment to boosting housing supply and the Budget must deliver real, practical solutions that get more apprentices on site, attract skilled workers to Australia and back in the employers to take on more workers,” Croft concluded.
As the nation anticipates the Federal Budget, the construction industry watches closely, hoping for measures that will address the workforce challenges head-on and pave the way for a more sustainable and skilled trades sector.