The Western Australian government has launched a bold financial offensive in its latest state budget, directly targeting the twin crises of housing affordability and a critical shortage of skilled construction workers. The centrepiece is a $10,000 cash incentive designed to lure 1000 essential tradespeople to Perth, funded by a massive $1.6 billion budget surplus largely driven by the iron ore royalty boom.
A Direct Cash Solution to the Tradie Drought
Under the new scheme, qualified interstate or overseas tradies in 32 high-demand occupations will receive $10,000 to relocate to Western Australia and work in the residential construction sector for at least six months. The eligible trades include carpenters, bricklayers, roof tilers, plumbers, electricians, and painters.
Treasurer Rita Saffioti framed the initiative as a necessary intervention to unblock the pipeline of new homes. "We know the biggest handbrake on housing supply is a shortage of skilled trades," Ms Saffioti stated. The government estimates the program will facilitate the construction of an additional 350 homes annually, providing a tangible boost to supply in a market under severe pressure.
Budget Windfall Fuels Housing and Cost-of-Living Measures
The ambitious tradie package is part of a broader $400 million housing injection enabled by the state's robust financial position. The budget surplus, revised up to $3.2 billion for the current financial year and forecast to be $2.6 billion next year, provides the firepower for this and other measures.
Key housing commitments include:
- $80 million to accelerate the development of key housing infill sites.
- $50 million to refurbish and upgrade social housing properties.
- $35 million to support the construction of affordable rental homes.
Beyond housing, the budget delivers significant cost-of-living relief, including a $400 electricity credit for every WA household and a freeze on household fees and charges like public transport fares and motor vehicle licenses.
Industry Response and Implementation Timeline
The building and construction industry has welcomed the targeted approach. Master Builders WA Executive Director John Gelavis praised the move, noting that every 1000 new tradies could build up to 2000 extra homes. He emphasised that while the cash incentive is a powerful short-term lure, long-term investment in training local apprentices remains crucial.
The relocation payments are scheduled to commence in the second half of 2024. The government will work with industry bodies to promote the scheme and verify applicants' qualifications and employment. This direct intervention underscores the severity of the labour shortage and the state's willingness to use its financial strength to find innovative solutions for Perth's growing population and strained housing market.
The success of the program will be closely watched, as it represents a significant test case for using direct financial incentives to solve regional skill shortages and stimulate a key sector of the economy.
