The Master Plumbers Association of NSW (MPA NSW) is urging the Federal Government to place greater focus on the employers who train apprentices, following the release of new figures showing construction apprenticeship numbers have fallen to their lowest level in five years.
The latest data from the National Centre for Vocational Education Research (NCVER) has renewed concerns about Australia’s ability to meet future workforce demands, particularly as governments pursue ambitious housing and infrastructure targets.
According to MPA NSW CEO Nathaniel Smith, the decline highlights a critical gap in current policy settings.
While public discussion often centres on attracting more young people into trades, Mr Smith said the role of employers in creating apprenticeship opportunities is frequently overlooked.
“Politicians keep talking about apprentices, but nobody seems willing to talk about employers,” Mr Smith said.
“You cannot have an apprenticeship without an employer.”
MPA NSW said small businesses remain the backbone of Australia’s apprenticeship system, taking on the financial and operational responsibility of training the next generation of skilled tradespeople.
The association noted that employers face rising wages, insurance costs, compliance obligations and supervision requirements, while government support for apprentice employment has declined.
Mr Smith said businesses are making significant long-term investments when they employ apprentices, with training costs estimated at around $250,000 over a four-year apprenticeship.
“The average employer spends around $250,000 training an apprentice over four years. Yet Canberra’s response was to cut apprentice employer incentives from $5,000 to $4,000,” he said.
“That’s like throwing a bucket of water on a bushfire and declaring the problem solved.”
MPA NSW believes the issue has implications far beyond the trades sector, particularly as governments seek to address housing shortages across the country.
The association argues that workforce shortages remain one of the biggest challenges facing efforts to increase housing supply, with skilled tradespeople essential to delivering both residential construction and major infrastructure projects.
“We keep hearing about ambitious housing targets. That’s wonderful. But who exactly is going to build these homes?” Mr Smith said.
“The workforce doesn’t appear by magic. It is created by small businesses employing apprentices.”
To address the decline in apprenticeship numbers, MPA NSW is calling on the Federal Government to introduce a 200 per cent Apprentice Employer Tax Credit, allowing businesses to claim enhanced tax deductions for apprentice employment costs.
The association says the proposal would provide a meaningful incentive for employers to continue investing in workforce development and help strengthen the pipeline of skilled workers needed to support Australia’s future growth.
“This isn’t welfare for business. It’s an investment in Australia’s future workforce,” Mr Smith said.
“If governments are serious about housing, infrastructure and economic growth, they need to back the employers who train the next generation.”
MPA NSW maintains that Australia’s skills shortage is not driven by a lack of interest from young people pursuing trade careers, but by a lack of meaningful support for the businesses willing to train them.
“The solution is simple,” Mr Smith said.
“Stop punishing employers. Start rewarding them.”