The Western Australian government’s $11 million construction visa subsidy scheme, created to attract skilled tradespeople to the state to boost new home construction, has fallen short of its target. Despite aiming to bring in 1100 tradespeople, only 114 have been attracted to date. The Labor government had hoped the scheme would draw in 11,000 tradespeople by mid-2024 by offering $10,000 to employers to offset the costs of bringing in foreign workers. However, the state government has criticized the Commonwealth government for visa processing delays, causing the limited number of applications received under the scheme.
Western Australia is facing a deep and long-lasting housing crisis, with no immediate solution in sight. Perth’s housing sector is struggling, with record rent increases, a low rental vacancy rate, rising house prices, a large social housing waiting list of nearly 36,000, and a residential construction industry trying to keep up with demand as the population grows rapidly. The New Property Council modelling projects that WA’s housing deficit will increase by nearly 25,000 homes by the end of 2027, further worsening the housing shortage in the state.
The construction visa subsidy scheme was intended to help alleviate the housing crisis by bringing in skilled tradespeople to boost new home construction and meet the growing demand for housing in Western Australia. The scheme targeted trades such as carpenters, bricklayers, civil engineers, and floor and wall tilers in an effort to address the shortage of skilled workers in the construction industry. However, the limited number of applications received under the scheme has raised concerns about the effectiveness of the program in addressing the state’s housing shortage.
The state government has called for applications under the scheme to receive priority processing to expedite the arrival of tradespeople to Western Australia. With the housing crisis showing no signs of improvement, there is a pressing need for skilled workers to help accelerate new home construction and ease the strain on the housing market. The government’s efforts to attract tradespeople through the subsidy scheme have been met with challenges, including visa processing delays and attracting a limited number of applicants, highlighting the difficulties in addressing the housing crisis in the state.
The impact of the housing crisis extends beyond just the shortage of homes, with rising rent prices, low vacancy rates, and soaring house prices adding further strain to the housing market in Western Australia. The state’s residential construction industry is struggling to keep up with demand as the population grows at a faster rate than any other state, exacerbating the housing shortage. With the housing deficit projected to continue growing in the coming years, there is an urgent need for solutions to address the housing crisis and ensure that Western Australians have access to affordable and quality housing.
Despite the challenges faced by the construction visa subsidy scheme, efforts to attract skilled tradespeople to Western Australia are essential in addressing the housing crisis and boosting new home construction in the state. The government’s commitment to supporting the construction industry and addressing the housing shortage through initiatives such as the subsidy scheme highlights the ongoing efforts to improve the housing market in the state. With the housing crisis showing no signs of abating, continued collaboration between the state and federal governments, as well as industry stakeholders, will be crucial in finding sustainable solutions to meet the growing demand for housing in Western Australia.
