Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges the Government's Key Apprenticeship Program (KAP) is delivering real outcomes, with over 11,400 housing apprentice commencements in the first six months;

(2) commends the Government for prioritising apprentices to build more houses through providing $10,000 incentive payments for apprentices in housing construction trades in instalments across the apprenticeship to support commencements and completions;

(3) recognises the Government's other measures to support apprentices, including increasing the allowance for apprentices living away from home for the first time in more than 20 years, while also doubling support for employers hiring apprentices with a disability;

(4) supports these measures as vital steps towards building a skilled workforce and addressing the worst skills shortage in 50 years which was left unaddressed by the previous Government; and

(5) further recognises that National Centre for Vocational Education Research data shows there were 22 per cent more apprentices in training within the construction sector at 30 June 2025 compared to 30 June 2019.

To build a better Australia, we need more homes, we need more manufacturing and we need to transition to renewable energy. And, to do all that, we need workers. We need more carpenters. We need more plumbers. We need more sparkies. We need more tradies. To deliver on this vision, one now backed not once but twice by the Australian people at elections, we need a strong and skilled workforce. Progress on skilling our workforce is critical to meeting our housing accord targets, our net zero commitments and our Future Made in Australia agenda.

That's why Labor has invested so heavily in skills, and one of those investments, of course, is the Key Apprenticeship Program: a $10,000 cash incentive going straight into the pockets of eligible apprentices, making sure they receive the support they need. Apprentices receive five $2,000 payments, while employers can claim up to $5,000 as well. That's necessary funding for expenses like tools, equipment and fuel to support workers in crucial industries like housing and construction.

The good news is that the data shows that our investments in skilling up our workforce are working. Since its launch in July last year, 11,407 apprentices have signed up to the Key Apprenticeship Program. But it doesn't just stop with that. For those who need to relocate for work and to train, the living away from home allowance offers weekly assistance throughout the apprenticeship's journey. We've raised that allowance for these workers for the first time in 20 years, a huge step in encouraging apprenticeship completions, particularly for people living in rural, regional and remote areas, boosting employment and economic growth. It's just one of many ways that we're reforming policy to address cost-of-living pressures and to reduce barriers to work.

In New South Wales alone, 2,759 new housing construction apprenticeships commenced across 2,186 employers. Younger Australians are getting fantastic head starts because of the policies of this government, as nearly 55 per cent of apprentices are aged 19 and under. Importantly, stats from the National Centre for Vocational Educational Research show that there were 22 per cent more apprentices in training within the construction sector at 30 June 2025 than there were at 30 June 2019. These policies matter, and they're delivering results.

Women's enrolments in the industry are highly promising with growth each and every year. But, of course, the government acknowledges, as does the sector, that there's so much more to do to balance out the gender gap in construction, which is why we've invested $60 million into the Building Women's Careers Program. Stuff like that is essential.

Let's never forget that, when we came to government in 2022, the government inherited one of the worst skill shortages in modern history. The former Liberal and National government handed down record-low apprentice numbers, the worst in 50 years. They neglected workers that the system and our economy needed. They ripped out billions from TAFE at the federal level. And, of course, in New South Wales, the state Liberals did even more: selling campuses and slashing jobs, leaving us with a crisis that we could not ignore. And we didn't.

We invested in free TAFE. Because of that, over half a million people's lives were changed. They were granted access to affordable education and set on a path for securing stable and well-paid employment. And today, because of Labor, free TAFE is a permanent feature of the national VET system.

My electorate in Bennelong is home to two TAFE campuses of our own, and there's one just across the border. We've got nurses, chefs, electricians, IT specialists and early childhood educators, all of whom can receive free TAFE locally. It's so important. It's keeping Australia running and it's making sure that workers can thrive.

To the carpenter and joiner, the plumber, the sparky, the glazier, the tiler, the brickie and the concreter: thank you. We need you to succeed so that you can build the homes that our society needs. You have to help us meet this housing crisis, and we've got the policies to back you in.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

Is the motion seconded?

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and waive my right to speak.

Andrew Wallace (Fisher, Liberal National Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

I rise to speak on this very important motion as one of the few tradesmen, or tradespeople, that work in this building—along with my good friend Senator Colbeck, who's a fellow carpenter. I do want to make a few comments about this motion because it is very important.

I had the privilege of doing my carpentry apprenticeship shortly after I finished school. Trades are incredibly important because an Australian trade can take you anywhere in the world. I want to send a big shout-out to anybody who may be listening to this or reading this at a later stage about the importance of trade qualifications, because so much emphasis over the last 20 or 30 years has been on sending young people to university. Now, I've done both; whilst going to university, for some, is important, getting a trade is an incredibly valuable, life-changing experience.

I particularly want to encourage mums and dads who are sitting around the kitchen table talking to their young sons or daughters about what they might want to do when they finish school. I want you to encourage your young kids to think about a trade, because things have changed a lot since I did my apprenticeship as a carpenter and joiner back in the eighties. Back then, we tradespeople—well, back then, it was essentially tradesmen, I have to say—drove utes and vans, and lawyers drove Mercedes-Benzes and BMWs. Now, it's the opposite. Tradies drive BMWs and Mercedes-Benzes, and the legal profession tend to drive lower quality vehicles, because the tides have turned. You think about how hard it is for you to get an electrician or a plumber or a chippie. You think about the trade. We have an incredible skill shortage in this country, and it has been driven predominantly by years and years and years of neglect. That's why I want to encourage mums and dads and young people to think about a trade, because a trade will take you anywhere. If you go on and work for yourself after your four-year apprenticeship, you have the opportunity to earn very good money.

Yes, apprenticeships are tough. I know; I remember my apprenticeship. It was a tough four years, but I like to think that it made me the person that I am today. Having a trade in today's world gives you the ability to run your own business, it gives you the ability to have a greater degree of freedom, and it gives you a terrific ability to earn good money—sometimes very good money. If you are in the building industry, you can go on and become a builder, as I did. As you get older, as many tradespeople do—well, we all do—it's tough. It's tough on the body as you get older, but there are career paths for you as you mature—like the Deputy Speaker, who's very mature.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

I'll remind honourable members not to reflect on the chair!

Andrew Wallace (Fisher, Liberal National Party, Shadow Cabinet Secretary) Share this | Link to this | Hansard source

When you are working on the tools, it's often hard yakka, but there is a life after being on the tools—there is a good life. You can go on and do many other things.

Now, it would be remiss of me if I didn't talk about the housing crisis that this government has created. They wanted to build a million homes. They are 100,000 homes short of building what they need to build every year—a 100,000 deficit of homes. One of the main reasons why is that we have, and continue to have, not enough tradies to be able to build the homes that Australians need. So those members opposite can jump up and down and squawk all they like, but we have a deficit of 100,000 homes each and every year––each and every year. So, young people, I encourage you: do a trade; the world will be your oyster.

Mary Doyle (Aston, Australian Labor Party) Share this | Link to this | Hansard source

The Albanese Labor government is building Australia's future. But, if we are serious about building that future, about building more homes, delivering clean energy and strengthening our communities, then we must also build the workforce that will deliver it. That is why we are backing apprentices by putting real support––real dollars––behind the next generation of carpenters, plumbers and sparkies, who will build this nation going forward.

The Albanese Labor government is providing $10,000 directly to apprentices to help them complete their training. That's practical support with the cost of tools, equipment and fuel that will help with the everyday pressures that come with starting out in a trade. We are also making free TAFE permanent because we understand a simple truth: investing in TAFE is investing in Australia's future.

In my electorate of Aston, we are already seeing the benefits. Our government's Key Apprenticeship Program is attracting new apprentices into housing construction right where we need them most. It is driving Australians towards the occupations that will help us build more homes and address housing supply challenges. I'm proud to say that my home state of Victoria is leading the nation in apprenticeship commencements under this program. In the first six months since the Housing Construction Apprenticeship stream launched on 1 July 2025, 11,407 apprentices commenced in housing construction trades across Australia. Of those, 3,415 were in Victoria, working with 2,598 Victorian employers. That is real progress and momentum. Almost half of Victorian apprentices are aged 19 and under. That tells us this program is opening doors for young Australians, giving them a pathway into secure, well-paid careers. These are careers that cannot be outsourced. These are careers that build communities.

We are also seeing encouraging signs when it comes to women entering trades. Victoria has recorded 148 women apprentice commencements under the program. There is still much more work to do, but this is a movement in the right direction. The National Centre for Vocational Education Research data shows that the number of women in training and trade apprenticeships has increased by 46.8 per cent compared to pre-COVID levels. That is why we are backing this up with measures like the $60 million Building Women's Careers Program, because building Australia's future means ensuring everyone has the opportunity to be part of it. The Key Apprenticeship Program is structured to support apprentices from start to finish. Participants receive $2,000 at six months, 12 months, 24 months and 36 months, and another $2,000 on completion. Employers can claim up to $5,000 in the first year. For those who need to relocate, the living away from home allowance provides weekly support, and we have increased that allowance for the first time since 2003. We have also increased the Disability Australian Apprentice Wage Support payment for the first time since 1998. These are not symbolic changes. They are practical reforms that ease cost-of-living pressures and set Australians up with skills for life.

Let me tell you about Sheldon from Melbourne. Sheldon is six months into his first year as a plumbing apprentice. He said that the $10,000 incentive is 'definitely a big help––$10,000 is a lot of money'. He told us it goes towards his tools and his car and that is a 'big incentive to keep going'. And that is what this is about—keeping people in apprenticeships, helping them complete their training and giving them confidence that their government backs them. The truth is in 2022 we inherited the worst skills shortage in 50 years. A decade of Liberal neglect hollowed out the apprenticeship system. Billions were ripped from TAFE and training. Seven billion dollars was spent on untargeted schemes with dropout rates as high as 60 per cent, while critical trades were ignored.

Labor is taking a different approach. We are delivering targeted, direct support to apprentices in clean energy and housing construction. We are investing in TAFE. We are supporting employers who train the next generation, and we are rebuilding a skills system that works for workers, industry and the nation. Backing apprentices is not just about filling jobs; it is about building homes, powering our clean energy future and giving young Australians secure, well-paid careers. Labor backs apprentices. We back skills, and this Albanese Labor government backs Australia's future.

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

I'd like to thank the member for Bennelong for this motion about the construction sector. Traineeships matter deeply to me, as does the construction sector, because they're one of the largest employers in my electorate. This matter really goes to the heart of the challenges facing my community in Fowler. The skill shortage is holding us back, and we heard the member for Fisher talking about the housing crisis that Australia is currently facing.

Our national housing target is falling short by around 60,000 homes a year, even as our builders and tradies work tirelessly to speed up supply and delivery. Right now, builders are telling me we face a shortfall of more than 83,000 tradespeople. To put that into perspective, that's enough to fill every seat in Sydney's Olympic stadium, and we'd need each of these people on the tools just to meet today's demand. Those numbers break down to around 22,000 carpenters, 17,000 electricians, 12,000 plumbers, 4½ thousand bricklayers and around 3,000 concreters. Without them, slabs don't get poured, frames don't get built and bricks don't get laid. That means more young Australians stay locked out of homeownership.

It's encouraging to see the government reporting 14,000 new commencements in housing trades under the KAP. But, I have to ask, are these genuinely new additions or simply the normal intake we'd expect in any given year? With an 83,000-person shortfall we need an additional 14,000 trainees on top of the baseline, not just an aggregate number that the government can put in a press release. The Housing Industry Association have told me constantly that they've been begging the government to make KAP permanent. Industry supports KAP schemes and so do I. But, as builders remind me, attracting people into trades is only half the story. Keeping them there is where the real challenges lie, with dropout rates hovering around 40 and 50 per cent. That's why the milestone payments under KAP are so critical. Supporting an apprentice through their full three or four years of training is what truly makes a difference. I'll be watching closely for the next set of data from the government, and I sincerely hope that those dropout rates start trending the other way.

But here's where I'm especially concerned: how are we supporting small builders and the ones doing the heavy lifting when it comes to taking on apprentices and training the next generation? The HIA Small Business Conditions Survey, which I helped launch recently, paints a very troubling picture. Sixty-seven per cent of businesses are struggling to find or keep skilled workers. Seventy-three per cent do not expect to hire more staff in 2026. Sixty-eight per cent have considered scaling back or closing because of red tape, and 88 per cent say red tape has increased their stress and pressure. That's not just a red flag; it's a huge alarm bell.

Small businesses are the lifeblood of our economy, and 85.5 per cent of construction apprentices are employed by small firms. Without their willingness to take apprentices on, the system simply collapses. There's no apprenticeship without an employer ready to create that opportunity. The Priority Hiring Incentive for housing and clean energy apprentices is a great initiative, but industry is telling me that they have no certainty about what happens after this year. We've already seen other sectors have their incentives halved. Businesses need predictability to make long-term hiring decisions. Industry is calling loudly for both KAP and priority-hiring-incentive programs to be made permanent, at least at current support levels.

Too often, skills and workforce policy feels like a game of hokey-pokey. One minute, support is in, the next, it's out. That has to stop. Today, I call on the government—and, of course, the member for Bennelong, because of this motion—to make a clear, long-term funding commitment in the 2026-27 budget to keep both schemes going, and to announce the decision from the May budget this year. Don't leave employees and apprentices waiting until the eleventh hour again. If the government wants to boast about the success of KAP, then make it permanent. Make it a genuine, long-term investment in our workforce and our housing future. Our housing targets depend on it. Our small businesses depend on it and young Australians trying to buy their first home depend on it. Let's not cap KAP.

Tracey Roberts (Pearce, Australian Labor Party) Share this | Link to this | Hansard source

The incorporated speech read as follows—

I rise today to acknowledge and commend the Albanese Labor government's Key Apprenticeship Program—a flagship policy delivering real outcomes, real jobs, and real opportunities for hardworking Australians, including in my electorate of Pearce, WA.

In just its first six months, this program has supported over 11,400 new housing apprenticeships across the nation. That figure represents more than 11,400 Australians taking their first steps into a trade career—and in Pearce, we are already seeing the benefits. From Butler to Eglinton, Yanchep, and Two Rocks, local apprentices are helping to build the homes, community infrastructure, and secure the future of our regions.

Each of these apprentices represents real progress: a young person in Pearce gaining valuable skills, a local family building stability, and an industry strengthened for the years ahead. This program ensures we have the skilled workforce needed to tackle Australia's—and Western Australia's—housing shortage.

For too long, our local builders and small businesses have struggled to find enough tradespeople to meet demand. The Key Apprenticeship Program addresses that challenge head-on. It's a targeted investment in people, ensuring our construction sector can keep pace with population growth especially important in fast-growing areas such as the Pearce electorate.

Importantly, this initiative aligns with the National Housing Accord, which brings together all levels of government with industry to deliver 1.2 million well-located homes over the decade ahead.

Apprentices—including those trained right here at the North Metropolitan TAFE in Clarkson, WA—will turn that ambition into bricks-and-mortar reality. When we train apprentices locally, we build both local jobs and the very homes our community needs.

A key feature of the program is the $10,000 incentive payment for apprentices in housing and construction trades. Structured across the life of the apprenticeship, it supports both commencements and completions. Starting a trade is important—but completing it is where the true value lies. Skilled workers mean confidence, stability, and local businesses that can thrive.

This is smart policy that supports apprentices every step of the way, while helping employers train and retain workers at a time when the construction industry needs them most. Builders can have confidence that a pipeline of skilled local tradespeople is being built for the future.

I also want to acknowledge the increase in the living away from home allowance—the first in over 20 years.

This is particularly meaningful for young people from regional and outer-metropolitan communities, such as parts of Pearce, who often face tough decisions between staying close to family or travelling for opportunities. This reform ensures geography doesn't decide opportunity.

And something that is close to my heart, for apprentices with a disability, the Albanese Labor government has doubled support for the employers who take them on. This means more inclusive workplaces and more Australians contributing their talents to our shared future.

These measures reflect a vision for an Australia where vocational education is respected as a genuine pathway to secure, meaningful work. Every apprentice, regardless of background, deserves that chance to succeed.

The need could not be clearer: we are facing the worst national skills shortage in fifty years, a problem neglected for too long.

The Key Apprenticeship Program is central to our plan to invest not just in projects, but in people—the very people who will build the homes, schools, and infrastructure that strengthen our communities.

The results speak for themselves. Data from the National Centre for Vocational Education Research shows that as of 30 June 2025, there were 22 per cent more apprentices in construction compared to June 2019—a clear sign that well-designed policy delivers lasting results.

I commend the minister and the Albanese Labor government for their leadership. The Key Apprenticeship Program is not just building homes—it's creating careers, confidence, and stronger local communities, including in my home electorate of Pearce WA. Thank you.

Libby Coker (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

There are few more fundamental responsibilities of government than making sure Australians can get ahead and get a good job. The Albanese government understands that apprenticeships, vocational education and learning a trade matter. Backing apprentices and the businesses that take them on is how we build Australia's future in a way that supports workers, businesses, regions and the nation. It gives Australians meaningful work, a decent wage and, importantly, enables businesses to thrive and help grow our economy. That's why I'm pleased to speak in support of this motion, which recognises that the government's Key Apprenticeship Program is already delivering real outcomes.

In just the first six months, more than 11,400 housing construction apprentices have commenced, helping to address acute skill shortages and supporting the delivery of more homes where Australians need them. Just last week, I met Jack from Corio, a second year apprentice plumber supported by gforce, a local group training organisation that helps apprentices rotate across host employers to build a broad range of skills. Jack, who is working on the federal and state funded Armstrong Creek Sports Centre, has already worked with several employers across different disciplines ranging from roofing through to major commercial plumbing. This has given him the experience he needs to build a long and secure career. Jack told me, 'It's a great time to be an apprentice heading into the workforce.' But Jack was also honest about the challenges apprentices face, particularly cost-of-living pressures and managing payments while starting out.

That's exactly why the Key Apprenticeship Program matters. Since 1 July 2025, more than 11,400 apprentices have commenced in housing construction trades and are eligible to receive—

A division having been called in the House of Representatives—

Sitting suspended from 12:58 to 13:21

Since 1 July 2025, more than 11,400 apprentices have commenced in housing construction trades and are eligible to receive $10,000 over the life of their apprenticeship. The payments help cover the real costs of starting out, including tools, equipment, fuel and travel. Right now the program is supporting over 4,000 carpenters and joiners, more than 2,300 plumbers and nearly 1,800 electricians across Australia. Importantly, employers also benefit with payments of up to $5,000 in the first year, which helps small businesses take on and retain apprentices.

The motion today also recognises additional measures to support apprentices beyond direct incentive payments. The living-away-from-home allowance has been increased for the first time in more than 20 years, providing support to apprentices who need to relocate for work. Support for employers hiring apprentices with disability has also been doubled, making workplaces more inclusive and accessible.

Industry has welcomed this targeted approach to skills and workplace development. The Housing Industry Association has said programs like the Key Apprenticeship Program are critical, particularly given that 85 per cent of apprentices are employed by small businesses. Master Builders Australia has confirmed these incentives are driving completions, with 95 per cent of trade apprentices finding work after finishing. Nationally, the data supports this approach. According to NCVER, there were 22 per cent more apprentices training in construction at 30 June 2025 compared to 2019.

These gains follow years of decline under the former coalition government, which, after a decade in office, left behind the worst skills shortage in 50 years. Just over the weekend, the opposition vowed to scrap the Key Apprenticeship Program. The opposition must explain how more homes will be built without training and backing in the tradespeople and businesses needed to deliver them. Our view on this issue is crystal clear: the Key Apprenticeship Program delivers fairness, opportunity and a better future for Australians. I thank the member for Bennelong for moving this motion and commend it to the House.

Sam Birrell (Nicholls, National Party, Shadow Assistant Minister for Regional Health) Share this | Link to this | Hansard source

Thank you, Deputy Speaker Wilkie, for the opportunity to discuss what is indeed a very important issue—apprenticeships in Australia. The member for Bennelong asked us to commend the government in relation to a number of things. I think the Albanese government wants to be commended on a number of things, including the state of the economy, but that's pretty hard to do at the moment. A cursory look at the numbers for which they are being asked to be commended compares the June 2025 data of apprenticeships with June 2019 data, and they say we've got a favourable outcome in those six years. Why would the Albanese government want to do that? It's quite simple, really. It's because, if you compare the building apprenticeship numbers for June 2025 with those of June 2024, you get a different trend. The numbers are going backwards.

The National Centre for Vocational Education Research statistics for apprentices and trainees in the 2025 June quarter state that, compared with the 2024 June quarter, commencements declined by 29.2 per cent. The largest decreases were among the food trades workers, down by 58 per cent, and construction trade workers, down by 27.1 per cent. Completions increased by 26.9 per cent overall, which is pleasing, including construction workers, predominantly plumbers. Another number that I think is important for this debate is that, as at 30 June 2025, there were 307,080 active in-training apprentice and trainee contracts nationally. When the coalition government left office, there were 428,150 apprentices and trainees in training across the country. So, on that measure, we appear to be going backwards. But I think acknowledging that there's a problem and it's multifactorial is the first thing, so we need to accept that, and then we need to work out what to do about it.

My experience from my electorate is that employers are finding it more difficult to take on apprentices, and they're finding that they're not incentivised enough to take on apprentices. They're also finding—and I'm hearing this a lot—that the TAFE system is failing industry. It's not working as well as it should. I think our approach to TAFE on our side of politics is to have better TAFE. The approach on the government's side is to have free TAFE. Free TAFE sounds good, but I think that better TAFE is what the industry is asking us for.

It's an experience that I had when I travelled through Europe on a Churchill Fellowship, which I was very grateful to receive, to look at the integration of industry and education in comparable economies. I saw the German system of vocational education and just what a high quality of apprentice and worker that that delivers. What I found was that their vocational education and training schools were superior to our TAFEs, both in terms of the teachers and in terms of the facilities. The apprenticeship system and how coordinated it is with industry was very eye-opening. A typical apprentice in Germany will do three days of an apprenticeship with a company—for example, Mercedes-Benz, which I visited in Stuttgart—and then they'll do another two days of that week at a vocational education training school, which is their version of TAFE. The curriculum that was in TAFE was designed by the chamber of commerce, not by the government. So we have a very coordinated effort between these two sectors—the vocational education training sector and industry coming together to say, 'What do we need, and what does that look like?' I don't see that in Australia, and I see that trend getting a bit worse.

So I think that there's a lot of work to do on apprenticeships. I will refrain from commending the government on what has happened so far. I think we are going backwards, and we need to look at ways that we can not only increase the number of apprentices but improve the overall education that apprentices get and make sure that they're ready to drive Australian industry into the future.

Andrew Wilkie (Clark, Independent) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned, and the resumption of the debate will be made an order of the day for the next sitting.