{"id":37825,"date":"2026-06-24T21:49:17","date_gmt":"2026-06-24T21:49:17","guid":{"rendered":"https:\/\/www.europesays.com\/australia\/37825\/"},"modified":"2026-06-24T21:49:17","modified_gmt":"2026-06-24T21:49:17","slug":"calls-for-new-tradies-to-get-tax-free-wages-as-australia-faces-300000-construction-worker-shortfall","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/australia\/37825\/","title":{"rendered":"Calls for new tradies to get tax-free wages as Australia faces 300,000 construction worker shortfall"},"content":{"rendered":"\n

Tradie apprentices<\/a> would effectively receive tax-free wages under a major plan proposed by a federal government agency to lure more Aussies into the sector. Australia’s construction industry<\/a> is already facing a shortage of 141,000 workers and it’s set to blow out to 300,000 by the middle of 2027. <\/p>\n

BuildSkills Australia, which is part of Job and Skills Australia, has recommended the tax-free threshold<\/a> of $18,200 be increased to $45,000 for construction apprentices. With first-year apprentices earning as little as $16 an hour, that means many would essentially be exempt from paying tax<\/a> on their wages. <\/p>\n

“Low wages are a major barrier to apprenticeship retention, particularly among older workers,” BuildSkills said in its housing workforce report. <\/p>\n

“Increasing the tax-free threshold to $45,000 for construction apprentices would provide immediate take-home pay relief, making apprenticeships a more attractive career pathway.” <\/p>\n

RELATED <\/p>\n

BuildSkills said the proposal would encourage higher completion rates<\/a> and support a stronger pipeline of skilled workers, according to The Australian<\/a>. <\/p>\n

It has also recommended fast-tracked apprenticeships for older workers, including veterans, given that many with family and financial commitments can’t afford to live on apprentice wages. <\/p>\n

Residential builders who hire apprentices could also get payroll exemptions, the agency has recommended. <\/p>\n

Yahoo Finance has contacted BuildSkills Australia for comment. <\/p>\n

Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a> <\/p>\n

Construction apprentice numbers plummet <\/p>\n

New data from the National Centre of Vocational Education Research released this week shows that 105,790 construction apprentices were in training at the end of 2025, marking the lowest number in five years. <\/p>\n

Overall, trade commencements increased 12.5 per cent in the December quarter, compared with the same quarter in 2024. This was largely driven by key shortage occupations, including electricians, plumbers, carpenters and joiners, and motor mechanics. <\/p>\n

Master Builder Australia chief economist Shane Garrett said while the data included some positive news, the trend was concerning<\/a>. <\/p>\n

“Over 7,600 new construction apprentices started out during the December 2025 quarter. Encouragingly, this was 10.0 per cent up on the same period a year earlier,” he said. <\/p>\n

“However, apprentice numbers are still getting hammered by worryingly high withdrawal rates. During 2025, 28,290 construction apprentices exited their training early and without any qualifications.\u00a0 <\/p>\n

“It means that the number of people who quit construction apprenticeships last year was higher than those who successfully completed their training.” <\/p>\n

Infrastructure Australia forecasts that the country is heading for a shortfall of 300,000 tradies by mid-2027 when the building of housing, transport and energy projects gathers pace. <\/p>\n

Master Builders Australia CEO Denita Wawn said construction workers were needed to turn around the housing supply shortfall and improve affordability. <\/p>\n

“Without them, targets will be missed and supply will fall further behind demand,” she said. <\/p>\n

$10,000 tradie incentive lures apprentices <\/p>\n

The government’s Key Apprenticeship Program<\/a> provides $10,000 in incentive payments to eligible apprentices who complete their trade in the residential housing sector. <\/p>\n

Apprentices get $2,000 at six, 12, 24, and 36 months intervals, and at the completion of their apprenticeship. <\/p>\n

Earlier this month, the government revealed more than 25,000 Aussies had started an apprenticeship in housing construction in the 10 months since the incentive was expanded in July last year. <\/p>\n

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