An extra 20,000 training places will be funded under a $90 million national package to boost the number of tradies in construction and housing.

Some 15,000 fee-free TAFE and VET places will be made available over two years from January 1, to address Australia’s housing crisis.

Next week’s federal budget for 2024/25 will also deliver an additional 5000 places in pre-apprenticeship programs.

An additional $1.8 million will be spent to streamline and fast-track skills assessments for about 1900 potential migrants with qualifications in construction and housing, and the processing of evaluations for new arrivals in targeted occupations.

The federal government aims to build 1.2 million more homes as Australia’s population, currently almost 27 million people, grows.

Skills Minister Brendan O’Connor said the package would support and strengthen Australia’s residential housing capability.

“This is a great opportunity for people to gain a trade whilst accessing government incentives and reduce cost of living pressures through more affordable housing,” he said.

Housing Minister Julie Collins said increasing housing supply was the best way to address the nation’s shortage.

“More homes mean more affordable options for everyone – whether they’re buying, renting or needing a safe space for the night,” she said.

“But to build more homes we need more tradies, and that is what this announcement will deliver.

“It’s just one way we’re working across government to build the homes Australia needs.”

More than 355,000 students have been supported by fee-free TAFE as of December.

The package showed the government was serious about addressing skills shortages, the union representing building workers said.

“There’s an often-overlooked distinction between apprenticeships and traineeships but thankfully the government recognises the importance of both – that’s critical to addressing construction skills gaps,” CFMEU national secretary Zach Smith said.

Construction industry groups also welcomed the initiative.

“We have worked closely with the government to make these policies a reality,” Master Builders Australia CEO Denita Wawn said.

“If we are going to have any chance of building enough homes we have to prioritise capacity building of the industry.”

Urban Development Institute of Australia said it was “greatly encouraged” by the funding.

– AAP