ALP promises cash bonus for apprentices

Master Electricians Australia (MEA) has welcomed the Albanese government’s recent election policy announcement that apprentices in residential construction will receive a cash bonus to help keep them in a sector critical to solving the housing crisis.

From 1 July 2025, eligible apprentices will receive a total of $10,000 paid in five instalments, on top of their wages, over the life of their apprenticeship to work in housing construction.

The initiative comes in response to the government’s Strategic Review of the Australian Apprenticeship Incentive System, which found cost-of-living pressures for apprentices are deterring people from taking up apprenticeships.

“It is essential that we get the Australian Apprenticeships system right. We need to have a system with more apprentices finishing their training and gaining the skills and qualifications that we need in our workforce,” said Minister for Skills and Training Andrew Giles.

“The Strategic Review of the Australian Apprenticeship Incentive System shows apprentices are especially exposed to the cost-of-living pressures. That’s why we are making this initial investment as a first step to help address the financial challenges apprentices and their employers face.”

MEA CEO Kate Raymond said the incentive is needed to help address a looming shortfall of electrical apprentices, including mature-age apprentices.

“Electrical contractors are crucial to addressing the housing crisis Australia faces; this means we need to be supporting the next generation of tradies,” she said.

“To attract young people to an industry as important as construction we need to ensure appropriate financial incentives are in place or we’re not going to have enough electricians in the long term.

Raymond emphasised that small and medium-sized businesses were in particular need of support to employ and retain apprentices.

“Time and again we hear from small business members who lose apprentices to larger competitors for higher wages. We completely understand anyone seeking a better wage, which is why MEA strongly supports measures to boost financial support to apprentices in residential construction,” she said.

“Small businesses do the heavy lifting in terms of training apprentices, particularly in their early years.”

Raymond said the MEA had conducted extensive advocacy to all levels of government on the issue, including calling for support for small business to train and retain apprentices, and better support for mature age apprentices. The MEA has also pushed for the introduction of South Australia’s apprentice transfer fee model to other states, wherein the business obtaining an apprentice part-way through training pays a transfer fee to the original business.

“We will continue to work with governments at all levels to enact practical solutions to assist SME electrical contracting businesses who are critical to the Australian economy,” Raymond concluded.

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