Coalition’s $12k incentive to fix tradie shortage slammed by union

The Coalition’s plan to address the trade shortage across Australia has been criticised by the ACTU for dodging the real solution of increasing wages.

An apprenticeship incentive plan has been proposed by the Coalition party which would put $12,000 in the pocket of small and medium employers who decide to take on new apprentices.

The number of apprentices and trainees has decreased by 90,000 over the past three years, with the Coalition vowing to reward businesses in critical industries who look to hire young Aussies. In response to the proposal, the Labor government raised queries about the cost, claiming the incentive programme would sting the budget of $2.95 billion.

Australian Council of Trade Unions (ACTU) assistant secretary Liam O’Brien argued the Coalition should “not be taken seriously”, considering their previous decisions.

“Australian Unions hear from young tradies across the country that low wages are driving them away from starting and completing an apprenticeship.”

“More apprenticeships are essential to building Australia’s future – but that only happens when you have a plan to lift wages. This is the same party that gutted vocational education and training and opposed free TAFE. They should not be taken seriously,” O’Brien said.

The ACTU argued that the Coalition's proposed plan only puts money in the pockets of ‘bosses’, neglecting the real issues facing apprentices.

“If Australia wants more young people to complete apprenticeships, we need to pay them fair wages.”

“The Coalition’s idea to give $12,000 to bosses is out of step with the real pressures facing apprentices and trainees in Australia,” O’Brien said.

Labor recently introduced a policy that offers a $10,000 wage bonus for apprentices who decide to enter housing construction or clean energy. The policy is set to come into place on 1 July 2025, where over the course of five years, apprentices are set to receive five $2,000 payments, supplementing their wages throughout their tenure.

The Coalition confirmed that they would match this policy if successful in the upcoming federal election.

It’s a policy that Master Builders Australia chief executive applauded Denita Wawn, however still recognising the pressure on Aussie SMBs whom Labor have seemingly ignored in this context.

“Australia’s building and construction industry faces the enormous task of delivering the homes, infrastructure, and services needed to meet the demands of a growing population. Labour shortages remain the biggest handbrake on this ambition”

“Labor’s Key Apprenticeship Program will provide some residential construction apprentices a $10,000 staged payment from 1 July 2025. The staggered payment structure, which provides a meaningful incentive for apprentices to complete their training is something Master Builders has long called for.”

“We do remain concerned that the high costs of employing and training apprentices, especially for small businesses, have not yet been adequately addressed by the ALP. With 98 per cent of construction businesses being small, they need support too,” said Wawn.

In relation to the Coalition's proposal, Wawn praised the policy as a “sensible” way of addressing the issues SMBs face throughout these industries.

“The Coalition has committed to a two-year, 10 per cent wage subsidy (up to $12,000) for small and medium-sized businesses hiring apprentices in priority occupations, alongside their matched $10,000 apprentice payment.”

“These are sensible, targeted measures that recognise the real costs small businesses also face, and the ALP should match this,” said Wawn.