[Australia] Tax-free wages for new ‘tradies’ to address worker shortfall

In Australia, a national Jobs and Skills Council has recommended increasing the tax-free threshold for construction apprentices “tradies” from $18,200 to $45,000, Yahoo reports.

The move would see many young tradies not paying any tax at all.

Under BuildSkills Australia’s plan, tradie apprentices would effectively receive tax-free wages in the hope of attracting more people to the sector. The nation’s construction industry is currently facing a shortage of 141,000 workers, and that’s predicted to climb to 300,000 by mid-2027.

BuildSkills Australia - part of Job and Skills Australia - has reportedly recommended that the $18,200 tax-free threshold be increased to $45,000 for construction apprentices. First-year apprentices often make as little as $16 an hour, meaning many would essentially be exempt from paying tax on their wages.

In its housing workforce report, BuildSkills said, "Low wages are a major barrier to apprenticeship retention, particularly among older workers.

"Increasing the tax-free threshold to $45,000 for construction apprentices would provide immediate take-home pay relief, making apprenticeships a more attractive career pathway."

According to The Australian, BuildSkills added that the proposal would encourage higher completion rates and support a stronger pipeline of skilled workers.

It also reportedly recommended fast-tracked apprenticeships for older workers, including veterans, since many with family and financial commitments cannot afford to live on apprentice wages.

In addition, the agency has recommended that residential builders who hire apprentices also get payroll exemptions.

Source: Yahoo

(Quote via original reporting)

In Australia, a national Jobs and Skills Council has recommended increasing the tax-free threshold for construction apprentices “tradies” from $18,200 to $45,000, Yahoo reports.

The move would see many young tradies not paying any tax at all.

Under BuildSkills Australia’s plan, tradie apprentices would effectively receive tax-free wages in the hope of attracting more people to the sector. The nation’s construction industry is currently facing a shortage of 141,000 workers, and that’s predicted to climb to 300,000 by mid-2027.

BuildSkills Australia - part of Job and Skills Australia - has reportedly recommended that the $18,200 tax-free threshold be increased to $45,000 for construction apprentices. First-year apprentices often make as little as $16 an hour, meaning many would essentially be exempt from paying tax on their wages.

In its housing workforce report, BuildSkills said, "Low wages are a major barrier to apprenticeship retention, particularly among older workers.

"Increasing the tax-free threshold to $45,000 for construction apprentices would provide immediate take-home pay relief, making apprenticeships a more attractive career pathway."

According to The Australian, BuildSkills added that the proposal would encourage higher completion rates and support a stronger pipeline of skilled workers.

It also reportedly recommended fast-tracked apprenticeships for older workers, including veterans, since many with family and financial commitments cannot afford to live on apprentice wages.

In addition, the agency has recommended that residential builders who hire apprentices also get payroll exemptions.

Source: Yahoo

(Quote via original reporting)