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Federal Government Launches New Payment for Students on Unpaid Placements
Prime Minister Anthony Albanese has announced a new financial support initiative, the Commonwealth Prac Payment, designed to assist thousands of Australians pursuing careers in nursing, teaching, midwifery, and social work. These fields often require students to complete extensive periods of unpaid practical experience, leading to what has been termed “placement poverty.”
Details of the Commonwealth Prac Payment
Eligible students will receive a payment of $331.65 per week while undertaking their mandatory placements. This amount is aligned with the single Austudy rate, significantly alleviating the financial burden associated with completing these placements.
During a recent statement, Albanese emphasised the importance of this payment, stating, “Students should not have to worry about how they will finance their placements.”
Students studying nursing at TAFE can apply for this payment immediately, while university students will be able to apply starting from July 1. Albanese added, “Whether you want to teach the next generation or care for your fellow Australians, we’re providing real support to help you graduate.”
Eligibility and Impact
Approximately 68,000 higher education students and more than 5,000 eligible VET students are expected to qualify for this payment annually, with a government investment of $427.4 million over the coming years to support this initiative.
Students often report that working unpaid for extended periods severely limits their ability to earn an income, leading to difficulties in affording basic necessities such as food and housing. For instance, teaching students are required to complete 16 weeks of unpaid work, while nursing students must fulfil 20 weeks, and social work students have an obligation of 26 weeks.
The Commonwealth Prac Payment will be available to domestic students pursuing a Bachelor’s or Master’s degree in nursing, teaching, midwifery, and social work, or a Diploma of Nursing during their practical placements.
Income Support Requirements
To qualify for the Prac Payment, students must either be receiving a Commonwealth income support payment, such as ABSTUDY or Youth Allowance, or demonstrate that they work more than 15 hours a week while studying, without exceeding a pre-tax income of $1,500 per week.
It is important to note that this payment will not extend to allied health professions, despite similar placement requirements within these fields.
Additional Financial Reforms
As part of the government’s broader strategy to ease financial pressures on students, a 20% reduction in HECS debts will be implemented. Parliament is set to consider this measure upon returning on July 22. This debt reduction will be backdated to June 1, thereby benefiting students before the recent indexation of 3.2% based on the Consumer Price Index.
For example, an individual with an average HECS debt of $27,600 could see approximately $5,520 wiped from their outstanding loans. Furthermore, the minimum income threshold for student loan repayments will be raised from $54,000 to $67,000 from July 1, meaning that compulsory repayments will only apply to earnings exceeding this new threshold.
Conclusion
The introduction of the Commonwealth Prac Payment signifies a substantial shift in how the Australian government supports students undertaking essential yet financially burdensome placements. By easing the financial strain and enabling students to focus on their studies and future careers, the government aims to foster a more robust workforce in these vital sectors.
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