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It’s no secret that there is a nationwide shortage of construction workers. Plus, with the federal government setting ambitious targets for much-needed residential housing – 1.2 million homes over the next five years – the gap between the work available and those qualified to do it needs to be bridged. Luring more people into the industry is the obvious solution, and it should be an attractive proposition, with no shortage of construction jobs on offer for years to come. So, what is the $10,000 apprentice incentive bonus and how does it aim to help the industry? We take a deep dive.
Keeping apprentices in the building sector on track to finish their training has proved to be difficult. “Construction apprentices have a historical completion rate of circa 54 per cent*,” Peter Gilchrist, Executive Director of Apprenticeship Support Australia (ASA), says. Rates of pay, he explains, are one of the top five reasons* why apprentices don’t complete their course.
Cost of living demands, running a vehicle, buying tools essential to the job and investing in personal protective equipment (PPE) all add up to a big hit on the tradie apprentice’s back pocket.
The government’s latest planned incentive, offering $10,000 over and above eligible construction apprentices’ regular wages^#, should help. It’s twice the previous figure of $5000 and would be a welcome boost to those starting out. “As a first-year apprentice in this industry, the pay rates are around $18 per hour, or circa $40,000 a year,” Peter says. “An additional $10,000 over the life of the apprenticeship will make a significant difference to the cost of living for apprentices in the sector, which should increase candidate interest.”
The new scheme is scheduled to kick off on 1 July 2025^. New trainees would receive five $2000 payments over the life of their apprenticeship: the first at six months, and the following payments at 12 months, 24 months and 36 months, with the final sum delivered when their apprenticeship is completed^. “Incentives are paid directly into the individual's bank account following eligibility confirmation checks,” Peter says. It is exempt from tax as it is not taxable income.
The new rate may only be open to new apprentices, unfortunately, so those who have already started their apprenticeship likely won’t be eligible for the increased payment. To check if you qualify, and for applications, head to Apprenticeships Data Management System (ADMS). You’ll need to sign in via myGov or with myID, the government’s digital identity app. For more information, check out mygov.au or myid.gov.au.
Time will obviously tell, but Peter says a $10,000 incentive should reduce the salary barrier and attract talent to the sector. “The incentive may also reduce apprentices shifting employers to increase take-home pay.”
If you’re considering a career in construction, it’s worth knowing that there are other incentives in place, such as a repayable Australian Apprenticeship Support Loan, up to $25,374 in total (for 2024–25) over the life of the apprenticeship, which is designed to help with everyday expenses. If you have to move away from home for your training, you may be eligible for the Living Away from Home Allowance for the first three years of the apprenticeship. “Other subsidies are available, such as the Disability Australian Apprenticeship Wage Support for eligible apprentices,” Peter says. Apprenticeship Support Australia has more information.
Tip: Have you heard about the Bunnings Trade Women In Apprenticeships Awards? Held annually, the winners take home great support and prize packs to help support female construction apprentices.
Lachlan Bainy, 20, who is in his second year of a Certificate lll course in carpentry, qualifies for the government’s existing $5000 wage bonus scheme. While his salary is higher than the standard for a second-year apprentice, he welcomes the additional money. “Having that extra bit of cash, you can put it towards tools or even PPE – like if you’re doing a lot of bathroom demo and that sort of stuff, have that good quality mask, or getting better steel-capped boots when you’re on your feet all day,” Lachlan says. “It’s a massive, massive help.”
The information in this article is general in nature. It doesn’t take into account your specific financial position, needs or circumstances. You should look at your own financial position, objectives and requirements and seek professional advice before making any financial decisions
