University students facing financial hardship due to unpaid placements will soon receive a much-needed allowance, as outlined in the 2024 Federal Budget. The Commonwealth Prac Payment aims to support students in health and teaching fields who struggle to make ends meet while sacrificing paid work for their studies.
The payment, set at $319.50 a week, will assist around 73,000 students experiencing “placement poverty” during mandatory clinical and professional placements. However, not all students will be eligible, and the allowance won’t take effect until next year.
Students studying nursing, teaching, midwifery, and social work will benefit from the payment, which is only available during placement periods. While the details of means testing are still being finalized, the payment will not affect other support payments students may be receiving.
The initiative comes after the Australian Universities Accord recommended the stipend to address the financial challenges faced by students during unpaid placements. Some controversy surrounds the inclusion and exclusion of certain professions, with calls for industries to help cover expenses for students in various fields.
Education Minister Jason Clare has hinted at expanding the program to include more courses in the future. The announcement follows the government’s plan to wipe $3 billion in HECS-HELP student loan debt, showing a commitment to supporting students in their educational journey.