Calls For Apprentice Tradies To Get Tax Free Wages Under Bold New Plan Amid 300,000 Construction Worker Shortage

Could Apprentice Tradies Stop Paying Tax?

BuildSkills Australia which is established by the Australian federal government to address workforce shortages and training needs in the construction, property, and water industries, has recommended lifting the tax-free threshold for construction apprentices from $18,200 to $45,000. With some first-year apprentices earning as little as $16 an hour, that would mean many could take home every dollar they earn instead of handing a slice over to the taxman.

The agency says low apprentice wages are one of the biggest reasons people don’t stick with their training, especially older workers juggling mortgages, rent and family expenses. The hope is that bigger take-home pay would make apprenticeships a more attractive option and help more people finish their trade.

The recommendations don’t stop there. BuildSkills also wants to fast-track apprenticeships for mature-age workers, including veterans, while giving residential builders payroll exemptions when they take on apprentices.

Apprentice Numbers Keep Falling

The push comes as new figures show apprentice numbers are heading the wrong way. There were 105,790 construction apprentices in training at the end of 2025, the lowest level in five years.

While there was some good news, with new construction apprenticeship commencements rising by 10 per cent compared to the previous year, too many apprentices are still walking away before finishing. More than 28,000 construction apprentices left their training in 2025 without completing their qualifications, meaning more people quit than successfully finished.

300,000 Tradies Needed by 2027

The industry says that’s a problem Australia can’t afford. Infrastructure Australia is forecasting a shortage of 300,000 construction workers by the middle of 2027 as demand ramps up across housing, transport and energy projects.

$10,000 Incentive Already Up for Grabs

To help attract more apprentices, the Federal Government is already offering up to $10,000 through its Key Apprenticeship Program for eligible workers who complete a trade in residential housing. The payments are made in stages throughout the apprenticeship, with the final instalment paid on completion.

With the country crying out for skilled tradies, the industry is hoping better pay and stronger incentives will convince more Aussies to jump on the tools and stick with it.