A cash incentive for skilled interstate labourers and an expanded local wage subsidy program are on the cards in Western Australia, as the Government works to fortify its struggling housing pipeline and plan for future demand.
The state government has announced a major boost to the building and construction workforce to help tackle the critical shortage of skilled labour in WA.
The move hopes to lure skilled tradies from the eastern states with a cash incentive while supercharging training of its local building and construction workforce.
On the table is a $10,000 incentive to help qualified building and construction workers relocate to WA, along with a multimillion-dollar expansion of the Group Training Organisation (GTO) Wage Subsidy Program.
“Building our construction workforce is the key to unlocking more homes,” said WA Premier Roger Cook.
“We know that it’s a big investment for people to choose to relocate to our great state, which is why we’re offering a $10,000 payment to subsidise the costs of moving.
“We are also expanding our highly successful GTO Wage Subsidy Program, giving 175 more young Western Australians an opportunity to take up a subsidised apprenticeship with WA building and construction employers, so they can earn while they learn.”
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The initiative will help to alleviate some of the labour challenges facing the industry and assist contractors to proactively recruit from interstate. Picture: Getty
According to the latest Australian Bureau of Statistics data, the tide may be turning when it comes to slow approvals fuelling WA’s housing crisis – the state has had the biggest uptick in housing approvals nationwide.
In the September quarter 2024, WA detached house approvals rose by 49.9% compared to the same time the previous year, and multi-unit approvals rose by a whopping 179.1% year-on-year.
With more homes approved, skilled labour will be in even hotter demand. Measures like these help make the path to creating a skilled workforce easier, and hopefully minimise future crises and shortages.
MORE: Building approvals hit 15-month high, signal return of new home buyers
‘Build a Life in WA’ incentive
The $10,000 ‘Build a Life in WA’ incentive is a payment to help with worker relocation costs from January 2025.
It adds to the toolbox of measures now in place to bolster WA’s critical building and construction workforce, and provide WA employers with the skills they need to meet demand – particularly in the residential housing sector.
“The $10,000 ‘Build a Life in WA’ incentive is aimed at reducing the financial barriers people often face when choosing to relocate to pursue employment opportunities,” Treasurer Rita Saffioti said.
“For skilled tradies – such as bricklayers, electricians, plumbers, and carpenters – WA offers well-paid and secure work with an ongoing pipeline of building and construction projects.”
MORE: How much does it cost to build a house in Perth?
The Property Council of Australia noted that high construction costs and skilled labour shortages will make it extremely challenging to provide the 26,000 new dwellings annually required to meet WA’s share of the National Housing Accord. The incentive and expansion are a way to ameliorate this. Picture: Plunkett Homes.
GTO Wage Subsidy Program expansion
The expansion of the highly successful GTO Wage Subsidy Program, funded through the Construction Training Fund, will enable GTOs to provide more opportunities for Western Australians to complete an apprenticeship or traineeship.
The investment means an additional 175 places will be added to the GTO Wage Subsidy Program, with $21.6 million invested to create more opportunities for Western Australians to complete a building and construction apprenticeship, and earn while they learn on the job.
Housing Industry Association WA Executive Director, Michael McGowan, stated that the extended subsidy will help alleviate the financial burden on employers investing in the next generation of skilled workers, ultimately boosting housing supply and reducing pressure on housing affordability.
“Combined with the introduction of over 2000 fee-free TAFE courses, this shows that the Government is listening to industry needs and placing a priority on developing a strong skilled residential workforce,” said Mr McGowan.
“The GTO Wage Subsidy program has been incredibly successful so far, enabling employers to train more apprentices and equip them with skills that will serve them for a lifetime.
“This initiative supports businesses by lowering costs, which allows builders and trades to concentrate on training apprentices and building more homes.”
The feedback was echoed by Training and Workforce Development Minister, Simone McGurk.
“The GTO Wage Subsidy has been a big hit with small and medium businesses, and these additional places will help even more of them with the cost of taking on an apprentice – building a pipeline of workers for many years to come.”
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