Impact of the Federal Budget

Andrew Sezonov, WPC Group General Manager

Impact of the 24-25 Federal Budget to Various Sectors - Expert Insights

Business Franchise Magazine, July 2024, Housing and Construction Sector.

Expert Insight from Andrew Sezonov, WPC Group General Manager.

For the housing and construction sector, the 2024-2025 Federal Budget addresses some important needs, however, it also presents both opportunities and challenges.

With the rising costs and growing competition for labour and materials, amplified by the cost-of-living crisis, it's becoming a more difficult time for younger apprentices to complete their programs. The funding and initiatives in place may not be enough to significantly impact the skills shortage. Apprenticeship programs must have an expanded scope into more industries, and vocational education pathways is a promising step in the right direction.

The government's focus on fee-free training in housing and construction is vital, however, it poses risks of neglecting other sectors. Over 50% of all jobs require VET qualifications, emphasising the need for a broader approach. A detailed collection of data and information is a must to better understand the issues specific sectors face.

We would also need more financial incentives implemented. It is a crucial component to increase apprentice completion rates. The planned $319.50 payment from July 2025 is helpful but may not be enough. To lessen financial pressures, there would need to be more support and additional payments, so apprentices can accomplish their training more efficiently.

While the $90 million investment on education for 20,000 students in housing and construction is a good start, it may not completely address the skills shortage. Every step is important in resolving economic challenges and pandemic-induced debts.