The federal government has announced a new initiative, the Commonwealth Prac Payment, to support students undertaking mandatory workplace placements as part of their university or vocational education and training (VET) qualifications. The payment, set to begin in July 2025, will provide eligible students with $319.50 per week during their clinical and professional placements.
Initially, the Prac Payment will be available to students studying to become teachers, nurses, midwives, or social workers. Approximately 68,000 higher education students and over 5,000 VET students are expected to benefit from this support. The payment amount is benchmarked to the single Austudy per week rate and will not affect other support payments received by students.
The introduction of the Prac Payment comes as a response to the issue of "placement poverty," where students struggle financially while completing mandatory unpaid work placements. Education Minister Jason Clare highlighted the challenges faced by students, stating, "Some students say prac means they have to give up their part-time job and that they don't have the money to pay the bills."
While the Prac Payment is a step in the right direction, some argue that it may not go far enough. Many degrees require students to complete extensive hours of unpaid work, such as social work (1,000 hours) and education (80 days minimum). However, the payment currently excludes students in other fields, such as occupational therapy and speech pathology, who also face significant unpaid placement requirements.
Moreover, the issue of unpaid work extends beyond mandatory placements. Students often engage in "open-market internships" or "voluntary" work experience to enhance their employability, which can lead to dubious arrangements where interns perform the same work as regular paid employees.
To address these concerns, experts suggest that universities, VET providers, and employers must collaborate to ensure that the benefits of unpaid work placements outweigh the costs for students. This may involve implementing regulations to limit the duration of unpaid placements, offering alternative learning experiences, and ensuring proper training, induction, and payment for students undertaking work that benefits businesses.
As the details of the Prac Payment are finalised, it is crucial for the government to consider expanding the list of eligible courses to support all students who face financial hardship due to mandatory unpaid work placements. By doing so, the government can help ensure that work experience remains accessible and beneficial for all students, regardless of their field of study.
