BUILDING apprentices will be paid $10,000 in an initiative to address a chronic tradie shortage and help overcome Australia's housing crisis.

From July 1, eligible apprentices in the residential construction sector will receive $10,000 in incentive payments, on top of their wages under a new Key Apprentices Program.

The new payment will be staged at 6, 12, 24, 36 and upon completion.

Rob Humphreys from R&R Quality Homes & Commercial Constructions has four apprentice carpenters on the payroll and he praised the initiative as he thinks it's a great idea and will especially help younger apprentices starting out.

"I think it's a fantastic idea because apprentices start off on minimum wages and even though they get a tool allowance, if they have a kickstart like that they can buy tools like nail guns and get organised better.

"It makes it a lot easier otherwise they come to work and they're grabbing everyone else's tools because they're just not set up at the right time.

"Apprentices usually have the basics which is good, but if they have an allowance like this, they can set themselves up a bit better."

The average wage for an apprentice carpenter in Australia is between $18.72 to $25.50 per hour or $31,000 to $53,000 per annum, as of December 2024, according to Payscale.

Apprentices in the building and construction industry currently receive a $5000 payment, which is front-loaded and this payment will remain available for apprentices who are not eligible for the Key Apprentices Program and it has been extended until the end of 2025.

Master Builders Australia CEO Denita Wawn said Australia’s building and construction industry faces the enormous task of building enough homes, commercial premises and infrastructure to meet increasing demand and a growing population.

“Labour shortages are currently the biggest handbrake on fixing the housing crisis," she said.

“Coupled with government funding of fee free vocational education and training, there is no better time to pick up the tools and become a tradie.

“The revised staggering of payments is something Master Builders Australia has long called for, so there is a financial incentive for apprentices to complete their training.

"Around 50 per cent of all apprentices do not complete their training - the new staged payments approach will hopefully see the rate of completions increase.

“Builders would like to see this payment expanded to other areas of the building and construction industry that are also facing chronic shortages and crying out for more apprentices."