New apprentice grants: WA Government offers $5K cash splash to wannabe building tradies to curb dropout rate

WA construction apprentices will soon be able to pocket a new $1000 cash grant each year of their training, as part of a $37 million State Budget incentive to retain the wannabe-tradies in the field.

The grants are the latest tactic to address apprentice attrition rates, as many wannabe tradies opt not to complete their qualifications.

A $500 post-apprenticeship tool allowance which was delivered in the last Budget will also be increased to $1000.

The sweetener brings the total possible cash boost for wannabe-tradies across their four-year course to $5000.

“We need more tradies on the tools to help build the massive pipeline of housing our State needs,” Premier Roger Cook said.

“This Budget will put housing front-and-centre because we want to help more Western Australians into a home they can afford.”

Eligible construction apprentices who started training this year will be able to access the payment from January 1, 2025.

The new cash incentive is an expansion of an existing program, launched last year, which offered a one-off grant of $2000.

The new yearly milestone payments will replace that previous sugar-hit grant, which was only available to people who finished their apprenticeship.

More than 1000 apprentices who completed their qualifications were supported through the previous program.

While most apprenticeships take four years, they can be fast-tracked if tradies-in-training demonstrate skills and technical work more quickly.

Mr Cook said grants were just one of a string of housing initiatives set to be unveiled in the Budget next Thursday by WA Treasurer Rita Saffioti.

The Labor leader said boosting housing supply and affordability would be a key theme for the 2024-25 State Budget.

Master Builders Association modelling last month revealed WA is not building homes quickly enough to meet targets under the Federal Government’s Housing Accord — and is on track for a 15,000 shortfall.

It predicted WA would need 40,000 to 50,000 new construction workers by 2026, through a combination of apprentices and migrants, to meet the 130,040 local target.

In March, Labor also announced a $21.5m expansion of the Group Training Organisation Wage Subsidy Program, which subsidised employers to cover construction apprentice wage costs.

It prompted 150 additional apprentice places in the building industry for construction apprentices.

WA Training Minister Simone McGurk said tackling the skills shortage would get people into homes sooner amid a housing crunch.

She said a whopping 50 per cent of apprentices and trainees were dropping out, however, the completion rate for WA construction apprenticeships was amongst the highest in the country.

“We want to send a message to apprentices and employers in the building and construction industry that there is cash, and a rewarding new career, up for grabs right now,” she said.

Industry experts have previously attributed attrition rates to the mining sector luring unskilled labour with hefty pay packets, as well as the physical “taxing” pressures of the work, particularly in WA’s searing summers.

The Budget is also Labor’s last before the 2025 State election, so will prove telling for campaign priorities in the lead-up to the ballot.