Kiki
Australia’s higher education and vocational education and training (VET) sectors are set to benefit from a game-changing new initiative: the Prac Payment.
As many students studying critical fields like nursing, teaching, midwifery, and social work face financial hardship due to unpaid practical placements, the government has stepped in to provide real support.
Starting July 1, eligible students will receive a weekly cash boost of $331.65 to help cover their living expenses during mandatory unpaid placements.
This is a significant change aimed at easing financial pressure and ensuring students can focus on their studies without the burden of placement poverty.
What is the Commonwealth Prac Payment?
The Prac Payment is a new federal government initiative designed to provide financial assistance to students completing mandatory placements as part of their degree. These placements are crucial for students pursuing careers in nursing, teaching, midwifery, and social work.
However, students often face placement poverty, meaning they have to work unpaid for long periods, sometimes up to 26 weeks, in order to graduate.
The payment, which is set at $331.65 per week, is aligned with the Austudy rate, the government’s standard support for students. Prime Minister Anthony Albanese emphasized that students should not have to worry about the financial strain of completing placements.
“Whether you want to teach the next generation or care for your fellow Australians, we’re providing real support to help you graduate,” he said.
Eligibility Criteria for the Prac Payment
The Prac Payment will be available to domestic students who are undertaking mandatory placements as part of their studies in one of the following fields:
- Nursing
- Teaching
- Midwifery
- Social Work
- Diploma of Nursing
To qualify for the payment, students need to meet the following criteria:
- Be on a Commonwealth income support payment such as ABSTUDY, Austudy, Youth Allowance, or DVA Education Allowance.
- Alternatively, students who work more than 15 hours per week during their university studies, and earn less than $1,500 per week before tax, may also be eligible.
The government estimates that around 68,000 higher education students and 5,000 VET students will be eligible for this payment annually.
This investment, estimated at $427.4 million over the forward estimates, aims to relieve the financial pressure of unpaid placements for students in essential health and education sectors.
How Will the Payment Help Students?
The $331.65 per week cash boost is designed to alleviate the financial strain students experience during their placements. Students often report having to take on additional work to support themselves, which can interfere with their ability to focus on their practical training.
By introducing the Prac Payment, the government aims to remove the barrier of financial hardship, ensuring that students can complete their placements without the added stress of placement poverty.
Placement Requirements for Different Fields
The new Prac Payment addresses the extensive unpaid hours students in certain fields must complete before graduating:
- Teaching students must do 16 weeks of unpaid practical experience.
- Nurses need to complete 20 weeks of unpaid placements.
- Social workers have 26 weeks of unpaid placements.
These requirements make it difficult for students to maintain full-time employment during their studies, which is why the Prac Payment is so crucial.
It will help students remain financially stable during this period and allow them to focus on their education and hands-on training.
Changes to HECS Debts
In addition to the Prac Payment, the Australian government is also implementing changes to the HECS system. Starting July 1, 2025, the government will reduce HECS debts by 20%, which is expected to benefit students with significant outstanding student loan balances.
For example, students with an average $27,600 debt will see around $5,520 wiped from their balance, making it easier for them to manage their loans.
The government is also raising the minimum repayment threshold for student loans to $67,000 from the current $54,000.
This means students won’t have to start repaying their loans until they earn above this new threshold, and repayments will only be calculated on income above that amount.
Payment Overview
| Payment Details | Information |
|---|---|
| Payment Amount | $331.65 per week |
| Fields Covered | Nursing, Teaching, Midwifery, Social Work, Diploma of Nursing |
| Eligibility | Domestic students on ABSTUDY, Austudy, Youth Allowance, or DVA Education Allowance, or students working more than 15 hours per week |
| Who is Excluded | Allied health professions (despite similar placement requirements) |
| Payment Start Date | July 1, 2025 |
| Annual Estimate of Eligible Students | 68,000 higher education students and 5,000 VET students |
The Prac Payment is a welcome initiative for Australian students pursuing careers in essential sectors such as healthcare and education.
By providing $331.65 per week during their mandatory placements, the government is offering tangible support to help students focus on their studies without the added burden of placement poverty.
This policy is expected to benefit thousands of students annually and ensure that Australia continues to foster skilled professionals in critical areas like nursing, teaching, midwifery, and social work.
The government’s decision to reduce HECS debts and raise repayment thresholds further enhances its support for students, making it easier for them to manage their finances and focus on their future careers.
FAQs
Who is eligible for the Prac Payment?
Domestic students studying nursing, teaching, midwifery, and social work, or those in a Diploma of Nursing, are eligible for the Prac Payment if they meet income and work criteria.
How much will students receive through the Prac Payment?
Eligible students will receive $331.65 per week during their placements.
When will the Prac Payment be available?
The Prac Payment will be available starting from July 1, 2025 for eligible students.