The federal government will invest $68 million over four-years in a new skills training initiative, Alternative Pathways, aimed at providing more flexibility than traditional four-year apprenticeship.

Master Builders Australia has cautiously welcomed the new program, stating that skills training was "one positive" of the budget.

Wilhelm Harnisch, Chief Executive of Master Builders Australia applauded the addition to the ongoing commitment to industry skills training, but warned there are some changes which will worry the industry.

"With an estimated 50,000 new entrants required in the building and construction industry over the next ten years to drive economic and jobs growth, the pilot alternative pathways program will assist this massive task.

"Alternative pathways have merit but must not undermine the importance of the apprenticeship system or the need for students to demonstrate competency to an industry workplace standard before obtaining a trade qualification.

Mr Harnisch also welcomed the additional $15 million provided to the Australian Skills Quality Authority to meet the current shortfall in its cost recovery arrangements but believes it will not relieve training providers from the looming cost burden of the regulator's full cost recovery scheme.

"The national skills quality regulator has proved more expensive than anyone thought, but many of its functions should be funded from consolidated revenue. Forcing training providers to bear the brunt of costs threatens their viability, which would have disastrous impacts on training the next generation of skilled tradespeople,” he said.

"The Budget measure to withdraw $5.9 million from training equity and access programs such as the Joint Group Training Program, in order to fund a Food Research Centre at Charles Sturt University, is highly regrettable and should be reversed immediately.

"Creating opportunities for disadvantaged learners to pursue a successful career in the trades is a crucial role of the training system, and must not be sacrificed for a special project in one favoured institution.

"Overall, the continued investment in apprenticeships and training and the Government's decision not to tinker further with existing Apprenticeship Incentive arrangements is strongly supported," Mr Harnisch concluded.