Milton Dick (Speaker) Share this | Link to this | Hansard source

I have received a letter from the honourable member for Indi proposing that a definite matter of public importance be submitted to the House for discussion, namely:

The need for the Government to expand the Commonwealth Prac Payment scheme to allied health and medical students.

I call upon honourable members who approve of the proposed discussion to rise in their places.

More than the number of members required by the standing orders having risen in their places—

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

On 1 July students in nursing, teaching and social work became eligible to be paid while undertaking mandatory placements as part of their studies. The Commonwealth Prac Payment scheme is a critical step in reducing financial barriers to higher education, but nurses, teachers and social workers are not the only ones who complete placements. Students in medicine and allied health also complete hundreds and sometimes thousands hours of work—and it is work, especially in the final years of their studies. Students are like apprentices, practising the very skills they will soon use as healthcare professionals.

While they are on placements, students can't do much—if any—paid work. Their income drops but they still have to pay for food, rent and other bills. In fact, they often have extra expenses related to their placements. For many students, it is absolutely unsustainable. That's why I secured an amendment to the legislation to make sure that when the scheme is reviewed the government must consider expanding it to other students.

But a review in the future will not do anything to help students who are experiencing placement poverty right now. I am regularly contacted by allied health and medical students who are struggling to stay afloat because of placements. They tell me they are working all night on night shifts, borrowing money from friends and family, delaying subjects and making hard choices between their financial security and their future careers.

Darcy O'Shannessy from Wangaratta in my electorate is going into his fourth year as a physiotherapy student. In 2026, Darcy will need to complete 25 weeks of full-time unpaid placement to finish his degree. We have a shortage of physiotherapists in regional Australia, so it is terrific that Darcy is so close to completing his studies. Next year will be great for Darcy's career but, by gee, it will be tough on his bank balance. He will have to give up his part-time job and will earn nothing for every week he is on placements. Darcy has had to up stumps and move back home so he has any chance of making ends meet and completing his degree.

A recent survey by the Australian Society of Medical Imaging and Radiation Therapy found 95 per cent of medical radiation science students are not confident they can manage to support themselves financially during full-time placement. Worryingly, almost 10 per cent say they plan to skip meals, sleep in their cars, defer subjects or drop out entirely. The statutory review set a deadline, but the government could choose to act sooner to prevent students from having to take such drastic steps. Across my electorate of Indi, more than 2,000 students are finishing Year 12. Many will be looking ahead to further study, wondering if they will need to move away from home and how they will support themselves if they do, and it is troubling to know that some will choose not to pursue a career in health care because, on top of everything else, they cannot afford to work for free.

And it is not just school leavers. Older students with established careers, families and financial obligations find it very hard to do unpaid placement. This is all the more urgent given that healthcare workforce shortages are rampant across the country, especially in rural and regional Australia. Expanding the prac payment scheme to include medical and allied health students would help in two ways. Firstly, it would allow more students from regional and rural areas, who already face higher costs for further study, to go into these fields—fields we desperately need. Secondly, it would encourage students from metropolitan areas to come to regional and rural Australia for their placements. I have heard of students being forced to turn down such opportunities because they cannot afford to temporarily relocate if they are not being paid. We know that students who do placements in rural and regional areas are significantly more likely to work in those areas after graduation. Making these placements financially viable means more medical and allied health students will return to build their lives and careers across electorates just like mine in Indi.

As a former nurse and midwife, I understand the importance of hands-on experience and of taking what you have learned in the classroom out into the real world. Students should not be penalised for choosing to study subjects that involve practical training. The government knows this and has taken a step in the right direction with the Commonwealth Prac Payment scheme but it must not stop there. I urge the government to immediately expand the Commonwealth Prac Payment scheme to all allied health and medical students.

Rebecca White (Lyons, Australian Labor Party, Assistant Minister for Women) Share this | Link to this | Hansard source

I rise on this matter of public importance and thank the honourable member for her contribution and for the work she did in the previous parliament to advocate for paid prac for these important student placements. I am really proud to be a part of a government that on 1 July this year provided paid prac, made it a reality for the first time for students studying teaching, nursing, midwifery as well as social work, because we understand that we need to be able to support these students to learn the skills of a new career. A lot of the time they have been doing that and have not been paid for it and it has placed an enormous financial burden on them.

We expect that with the support provided from 1 July this year that 68,000 eligible higher education and 5,000 VET students will complete their practical training each year, so we are talking about a significant cohort of students who will benefit from these changes. It is practical support for people while they are completing their practical training.

These payments will help the students who need it most, by giving them the extra bit of financial support they need so they could focus on their studies, and we know that's important, because, for far too long, students just like the examples you gave have had to juggle work, study, care responsibilities and other commitments they have in their life, and it can sometimes mean that they don't complete their education, they don't complete their studies, and they don't go on to have the career that they dreamt of. No-one should have to choose, and that's why this first step on 1 July has been so important.

We are starting with students studying teaching, nursing, midwifery and social work, which was recommended by the Australian Universities Accord. Almost every Australian will interact, at some point in their life, with a nurse, a teacher, a social worker or a midwife, and they are critical to the wellbeing of so many across our community.

In 2025, the payment, which began on 1 July, is $331 per week, which is benchmarked to the single Austudy rate, and I've been advised that over 67,000 applications from higher education students have already been received in the first four months of the program. That is very, very good news. More than 80 per cent of those applicants have been processed, and more than 80 per cent of those have been approved. This shows we are tackling placement poverty head on. We are giving future teachers, nurses, midwives and social workers a chance to gain the qualifications to pursue their dream careers without having to worry about whether they can afford to do that.

The review that is built into the legislation—I acknowledge the comments that were made by the honourable member—does mean that, after three years of operation, the program will look at how it is working, whether it's been effective and what might need to change. It will consider the effectiveness of the payments provided to students and the appropriateness of the expanding payments to other courses, including allied health. In addition to that, further consideration will be given to other recommendations in the accord, including that the government work with tertiary education providers, state and territory three governments, industry, business and unions to consider further support by employers to mitigate the risk of financial hardship and placement poverty for students in other fields. As the Minister for Education has said, the accord is not a plan for one budget, but a blueprint for the next decade and beyond.

While I can, I would also like to reflect on some of the other steps our government is taking to support people who are going through higher education or VET training. As we heard from the education minister today, 20 per cent off the HECS debt is making a huge difference to those who have started studying in our country. This will benefit three million Australians and wipe $16 billion in HELP and other student debt, and an individual average HELP debt will see $5,500 wiped from that debt. This is going to make a massive difference for those students, and we know, as the education minister said, tomorrow 1.5 million young Australians will have their debt cut by 20 per cent, and another 1.5 million young Australians will have their debt cut next week. It is the biggest cut in student debt in Australian history. We promised it; we delivered it.

The other example I'd like to give how we fixed HELP debt inflation. This was something that happened last year, and the government wiped a further $3 billion of HELP debt and capped the HELP indexation rate to the lower of either the consumer price index or the wage price index, and this has made system better and fairer and ensures that HELP debt can never increase faster than wages.

Today, I had the privilege, as the Assistant Minister for Indigenous Health, to also launch a new scholarship program for Indigenous health students which provides scholarships for First Nations health students. About 80 are issued annually. It provides $1 million over three years, and it's being delivered by our co-sector—the Indigenous allied health association is running that program. It's part of our Closing the Gap initiatives—to transfer responsibility of these initiatives to the First Nations community. That was launched today. They've got a proud track record of delivering scholarships of this type, and I'm really excited to see a new round open up to invite 80 applicants to put their hand up. That's going to provide financial support to students undertaking a health degree from First Nations communities. It is direct financial support to assist them.

Alongside things like paid prac, there are other programs that our government supports that are supporting those embarking on a medical degree and other allied health professions to ensure that people from rural and remote Indigenous communities can access higher education to pursue their dreams of becoming health professionals and address some of the workforce challenges across the country in a range of areas, particularly in health care.

I am very proud of the work our government is doing to make sure that we have paid prac for the first time. I have spoken to many young Australians, mostly in my electorate in Tasmania, who have shared their stories of trying to manage a job and sometimes manage the responsibilities of having a family and paying bills while undertaking prac and not being paid for that. It can be incredibly difficult. It can be very exhausting, not only financially but mentally and emotionally, when you're trying to juggle all of those responsibilities. You might be doing that because you're trying to progress and further your own career, but, in many instances, you might also be doing it for your family. You might be the first in your family to embark on a career in one of these areas, or, if you're a carer or a parent, you might be furthering your own career to support your family. I acknowledge how hard that can be and what a juggle that's been for many Australians. That's why it's so pleasing to see that, from 1 July this year, 67,000 Australians have already made an application to the paid prac program and that tens of thousands of Australians have already benefited, and it's been operating for only four months.

The review is in three years, as you well understand because you were such a strong advocate to include it. But I think it's important to recognise that this is just the start. There is, of course, more work that needs to happen. I'm thrilled to see the early results and also really proud to be part of a government that supports paid prac. We will see the benefits not only for those individuals but also for our health workforce, our teaching workforce and our allied health workforce in the years to come as these young students and people embarking on a career change graduate and are able to participate in our community. I commend the member for bringing this matter to the House so that we can talk about it in more detail.

Andrew Gee (Calare, Independent) Share this | Link to this | Hansard source

I commend the member for Indi for bringing this very important matter of public importance to the attention of the House. The member for Indi makes a very important point. This is a very worthwhile scheme, and it is commendable that it has commenced, but we think that it needs to be expanded. We on the crossbench want to see it made available to more students. It's a payment of $331 per week. It's available to students studying teaching, nursing, midwifery and social work degrees, and it helps them with expenses while undertaking their compulsory professional placements as part of their tertiary education.

In country Australia we have a healthcare workforce crisis. There's a shortage of healthcare workers. That's why we on the crossbench want to see this scheme expanded so that it can help allied health and medical students. Allied health students like occupational therapists, physios and speech pathologists are required to undertake more than a thousand hours of practical experience just to obtain their degree. Medical students need to complete about two or three years of full-time clinical rotations—that is, roughly, 1,500 to 3,000 hours of practical experience and placements across major medical specialities.

We need to understand that our allied health and medical students are crucial to the future of country Australia. They are going to be building and bolstering our country's health workforce. That's why these students need our support, because they are so crucial to regional Australia. There is a significant body of research telling us that placing medical students in regional and rural training programs makes them more likely to subsequently work in country areas. In fact, a University of Queensland study found that students who participated in a 12-week placement in a small rural town were around three times more likely to work in a similar sized community after graduating. Charles Sturt University Vice-Chancellor Professor Renee Lyon pointed out—and it's a point well made—that 70 per cent of CSU graduates go on to live and work in regional Australia and that regional and rural students often have to travel long distances from their homes, families and workplaces to complete the practical components of their courses. It's just a fact of life for country students.

In 2024 alone, more than 2,500 CSU students applied for financial assistance, yet only 750 grants were available—proof of the scale of the need. Vice-Chancellor Leon states: 'Expanding the scope of the Commonwealth track payment goes beyond fairness and helpfulness for these students. It just makes a huge difference and would make a huge difference if it could be expanded. It would enable our future rural health workforce to get on with forging their careers of choice minus the stress of whether they can afford to study outside major cities.' The vice-chancellor makes a very salient point.

While I'm speaking about Charles Sturt University, I mention the fact that since the Charles Sturt University medical school opened its number of students has effectively been capped at 37. We have been fighting for five years, through two governments, to get the number of medical student places expanded. In very positive news, CSU's School of Rural Medicine has just been allocated an additional 10 places by the Australian government, which is what we've been calling for and I've been calling for in this place, in question time. That is positive—although, I have to say, it fell well short of the number of student places CSU was asking for; it's less than half of what CSU was asking for. It's a step in the right direction, but, with another round of medical student places up for grabs next year, you can be sure that country MPs on the crossbench and I will be fighting for more medical student places for our country universities like Charles Sturt University. The health of our country residents and communities is at stake here. The government can expect to hear a lot more from me on this issue.

In conclusion, we want to make sure that, in country Australia, our university students are fully and properly supported so they can build our future country workforce. I commend this matter of public importance to the House, and I thank the member for Indi for bringing it here.

Carina Garland (Chisholm, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for Indi for bringing this important matter of public importance to the House. Those of us on this side of the House recognise that it's incredibly vital that we support students to get an education that sets them up for great jobs to support our communities.

I know very well how important higher education is to my own electorate of Chisholm in Victoria. I have Monash University to the south of my electorate, and I have Deakin University in the heart of my electorate. I know from doorknocking and speaking to so many people at train stations, on the phone and out and about on street stalls how important higher education is to my electorate and how important the matter of paid pracs is to my electorate. I undertook a survey of my electorate on higher education ahead of the Universities Accord process and received hundreds and hundreds of responses with lots of really important feedback that I passed through to the process, making my own submission on behalf of my community. I'm proud to be part of a government that is supporting teaching, nursing, midwifery and social work students to complete their practical placement courses.

On 1 July this year, paid prac became a reality for those studying teaching, nursing, midwifery and social work. I heard from students and from the families of those studying these courses that it was really challenging to manage study and living expenses. I'm proud to be part of a government that, for the first time, has provided financial support for mandatory placements. We expect this will support at least 68,000 eligible higher-education students and 5,000 VET students to complete their practical training each year. This support means they can afford to go to class and to complete their courses by going to placements, and it also means we have people with the skills we so desperately need in our communities right across the country.

For too long, unfortunately, it is true that students have had to choose between finishing their degree and paying their bills. We're ending that unfair choice. No-one should be pushed into delaying or dropping out of study just because they can't afford to do their placement, which is what so many students need to do to complete their courses. This starting point of students studying teaching, nursing, midwifery and social work receiving paid prac payments is what was recommended by the Australian Universities Accord. As I said, I was quite engaged in that process on behalf of my community.

This year, 2025, the payment is $331 a week, which is benchmarked to the single Austudy rate. There are over 67,000 applications already who have applied for this payment. More than 80 per cent of those applications have been processed and more than 80 per cent of those have been approved. I think this shows we are tackling placement poverty head-on, giving future teachers, nurses and social workers the practical support they deserve.

But I know that there are other students who do need to undertake practical placements, so building a review into the legislation, as we have, to examine the performance of this program after three years of operation is really important to consider the effectiveness of payments provided to students and the appropriateness of expanding payments to other courses, including allied health.

This decision to begin with the cohort that we have started with was informed by recommendations from the universities' accord process. In addition, further consideration will be given to other recommendations in the accord, including that the government work with tertiary education providers, state and territory governments, industry, business and unions to consider further support to employers to mitigate any risk of financial hardship and placement poverty for students in other fields.

This is not a plan for one budget. This is a plan to build for the next decade and beyond. I really do thank the member for Indi for bringing this matter to the House. I will take any opportunity I can to talk about higher education and why it is so important to my community. I look forward to working with everyone in this House to build a stronger higher education system.

Rebekha Sharkie (Mayo, Centre Alliance) Share this | Link to this | Hansard source

I'm very pleased to speak to this MPI by the member for Indi. This is an area that I know the member for Indi has championed for a very long time.

I would like to read a quote that's come from the Australian Medical Students Association, and it's this:

I want to go home and tell potential future doctors in my rural community to choose a career path in medicine, as we have a government that will support you through the long, hard journey to become a doctor. But I can't, because we don't have the support we should at all.

That powerful statement is from a member of the Australian Medical Students Association, disappointed at the lack of support for medical students under this Commonwealth practical payments scheme. I think this scheme is brilliant. We just need to finesse it and make sure that we're capturing everybody that it should apply to.

From 1 July this year, this scheme provides $331.65 a week. It's payable for students who undertake a mandatory placement in select disciplines. Those placements, they might be doing a diploma of nursing or they might be studying a degree in teaching, nursing, midwifery or social work, or a masters degree. The requirement is for the placement to be an average of 30 or more hours per week and must prevent them from maintaining paid work.

I want to touch upon that. This is for my daughter, who is studying her diploma in nursing. It just blows my mind. She's just finished a prac placement and told me all about the work that she's doing. Truly, she has done things in the last two weeks that I could not even possibly do, but she also has two other jobs. She lives independently from home. She lives in another state while she is studying this. She's not allowed to do any work on those weekends in between when she's doing prac placement or, indeed, nights. So, financially, it is a huge impact for young people, for anyone—young or mature age—who is studying. Not only are they doing, in her case, two lots of 40 hours over a fortnight; to not be able to do any of your other casual jobs is a huge financial impost. We need to capture everyone that this should apply to. That does include those who are studying medicine. For young people, in particular, who are perhaps the first in the family, come from families who can't afford to financially support them or, indeed, are out of home, it's such a barrier to studying. So we really need to get this right.

This placement payment is designed to provide those most at risk of placement poverty with costs-of-living support to help ease the financial pressures associated with placements. I would even say that perhaps there are other areas of study we could look at expanding this to in the future. We really do want our young people to be able to undergo those prac placements. I didn't realise until I started talking to young people in my community who are studying physiotherapy or other qualifications how much placement they need to do as part of their degree. It really is quite extraordinary. Anything we can do to support them is really important.

I'll go back to my daughter. We were able to help her, but many of her friends at uni—and she was included in this—were not able to receive any assistance under this scheme during the last practical that they did because the last practical they did was only 80 hours over that fortnight. The threshold, she was told, was 80 hours. That's two weeks of no money at all. That's very, very hard for young people who are just trying to cover the cost of rent and food and everything else.

This is an excellent program, but I think it can be improved. I'd hate to think we would wait several years to review it and do that. I think that we could do that more quickly. I commend the member for Indi for bringing this to the parliament. Let's work on this now and not in years to come.

Renee Coffey (Griffith, Australian Labor Party) Share this | Link to this | Hansard source

I want to thank the honourable member for Indi for her support for paid prac and her enthusiasm for supporting students, especially young people, to gain the qualifications they want and the qualifications that Australia needs. In particular, I want to acknowledge her longstanding advocacy about placement poverty in regional Australia. Thank you very much.

More than 20 years ago, when I first left high school, all I wanted to be was a teacher. I started off at the University of Queensland, undertaking a Bachelor of Arts and a Bachelor of Education. I finished all the coursework that was needed for that degree over a number of years. My intention was to graduate and to start teaching, but, when it came to my final practicum—the very last part of my qualification—there was absolutely no way that I could afford to give up work for that period and continue to pay rent and all other costs. So I had to make the very difficult decision all those years ago to graduate with an arts degree and to leave my education degree on the shelf for a bit longer. It took me a couple of years of working and saving after that point to be able to afford to return to university and finish my teaching qualifications.

During that period, when I was a young adult, my gorgeous little baby niece, Bridget, was born, and, quite famously in my family, Bridget said that when she grew up she wanted to live in a 'nunit' and go to 'nooni' like 'Aunty Nay'. She has done most of that. Twenty years after that, I watched her studying her education degree and also, very recently, watched her trying to finish her practicum and not being able to afford that and have it be incredibly challenging. Due to my own experience, and, decades later, seeing my niece go through the same hardship, I was incredibly proud to be able to support this policy within the Australian Labor Party, through our conference processes. I have advocated for and supported this from its earliest stages, so I was absolutely heartened to see this passed. I thank the member for her contributions to passing this also.

It's a great policy and it's an important way that we can support nursing, teaching, midwifery and social work students during those crucial weeks where they must undertake their prac. With the federal Labor government's changes we are able to support young people studying these absolutely essential professions. It's something that I am incredibly proud.

In my community of Griffith in Brisbane, I meet education, nursing, midwifery and social work students on placement in our local schools, aged-care homes, hospitals and community services. They love their work and they are absolutely determined to graduate, but they tell me how hard it is to juggle unpaid prac with rent, groceries, bills, transport and the costs involved with actually doing these pracs, in many instances. That's why the Albanese Labor government has put practical support behind practical training.

From 1 July, paid prac became a reality for these professions. For the first time, the Australian government is providing direct financial support to help students complete compulsory placements—around $331 a week in 2025—supporting around 70,000 students each year. Sadly, it was just a little bit too late for my niece, Bridget, but I am very pleased to report that she managed to struggle through and has completed her education qualifications and is teaching in my electorate of Griffith as a first-year teacher. But we know that it's going to be much easier for other educators and healthcare workers coming through the ranks now with these changes. These payments are targeted at those who need help the most. They give students breathing space so they can focus on learning in the classroom, on the ward and in the community instead of worrying about the next bill. No-one should have to delay or abandon their studies simply because they cannot afford to do the placement that qualifies them for the profession that they love.

We have started with teaching, nursing, midwifery and social work students, consistent with the Australian Universities Accord, but this legislation does require review after three years to assess how well the payment is working and whether it should be extended to other areas, including allied health. I want to thank the member for Indi for raising this matter and for working so constructively with government on this. Our focus is on implementing these changes well so that students in Griffiths and across Australia can complete their studies and move into the professions that keep our communities healthy, safe and thriving.

Dai Le (Fowler, Independent) Share this | Link to this | Hansard source

I rise in support of the member for Indi's matter of public importance and to make one simple point. Unless the Commonwealth prac payment is expanded beyond a narrow group of disciplines, we will continue locking future health workers out of the system we claim we urgently need. As we have heard from crossbench members, while we all welcome the government's scheme to provide about $332 a week in prac payments for student studying teaching, nursing, midwifery and social work, many are asking: why are we stopping there? Why are physiotherapy students excluded? Why are radiographers, psychologists, occupational therapists, speech pathologists, paramedics and medical students left out?

This isn't a small policy oversight. It cuts through the principle of fairness and undermines our ability to fix our workforce shortages. The reality is straightforward. Allied health and medical students complete long, unpaid full-time placements. They can't work while doing them, but rent still has to be paid and transport still needs to be paid for, as does food, textbooks and basic bills. Too many are being pushed into an impossible choice: push ahead with placements and fall into financial stress or walk away from their degree entirely.

In a community like Fowler, those decisions bite even harder. According to the 2021 census, almost 12,900 students in Fowler enrolled in tertiary education, including over 8,000 university students. Many are the first in their family to go to university. They are our future doctors, physios, psychologists and radiographers. They come from migrant and working-class families. They want to give back to the suburbs that raised them, and we need them to. Fowler has historically recorded some of the highest GP bulk-billing rates in Australia, in the mid-90 per cent range, because our families cannot absorb a large out-of-pocket cost.

I want to share the story of David, one of the young people on my Fowler Youth Advisory Committee. David wants to become a doctor so he can serve the local community his family has called home for decades. He is bright, hardworking and compassionate, the kind of culturally competent, locally grounded doctor we desperately need. But David is really worried about how he will afford his clinical placement. He told me that, when the time comes for months of unpaid full-time placement, he doesn't know how we will survive financially. His parents are already stretched, he doesn't want to be a burden, and he isn't alone. Dozens of students tell me the same thing. If students like David cannot afford to finish their degrees, Fowler loses out. The country loses out.

The government will say this expansion is too expensive, budgets are tight, placements across disciplines are too complex to administer, or they will call for more consultation—anything to delay a decision. But the cost of doing nothing is far greater. Modelling shows Australia will need around 25,000 additional allied health workers by 2033 in aged care alone. Jobs and Skills Australia projections indicate the broader health and social assistance sector will require over half a million new workers in the next decade.

Yet the very students who could fill these roles are being pushed to breaking point by placement poverty. Some of the heaviest burdens fall on medical radiation students. Students undertaking degrees in radiation therapy or diagnostic therapy can expect up to a year of full-time work for zero income.

Expending the prac payment scheme is not a handout; it is a strategic workforce investment. If we are serious about fixing shortages, supporting young people doing the right thing and ensuring communities like Fowler have the healthcare workforces they need, then we must end this two-tiered system and extend the prac payment to all health disciplines with mandatory clinical placements. I call on the government to show leadership and get this done. I commend the matter to the House.

Ash Ambihaipahar (Barton, Australian Labor Party) Share this | Link to this | Hansard source

I would like to thank the member for Indi for raising her matter of public importance for discussion in this House, the example of Darcy's story and the other issues raised in the member for Indi's contributions this afternoon. I can hear that there's a bit of consensus in this chamber around some of the challenges for students in higher education.

I also speak from a place of experience. Before I was a solicitor, I worked at the University of Sydney for about eight years in the anatomy department—specifically, teaching medical students and a number of other students in the allied health profession. I understand from that experience a lot of challenges that students go through on campus and also in dealing with cost-of-living challenges and accommodation.

On the tail end, prior to coming into this House, I had the opportunity to work with St Vincent de Paul Society for a couple of years. In that capacity, I had the opportunity to look after a very big patch of New South Wales going up from Wyong, out to the Blue Mountains and down to Helensburgh. That captured a number of great institutions, a number of universities, where a lot of youth Vinnies members did a lot of engagement on those campuses with students dealing with cost-of-living challenges, with housing and accommodation.

So this comes from a place of experience and understanding. I want to acknowledge that everyone in this chamber seems to be singing from the same song sheet, knowing that those are the challenges for a lot of students in this industry. Also I've had the opportunity to speak to a number of HSU members—and I've had really active conversations more recently—who work in the allied health profession.

This Labor government understands that it's quite tough for students when they're completing mandatory placements. That is why we are delivering on real cost-of-living support, which includes this Commonwealth prac payment. I believe this assistance is quite careful; it's quite considered. The payment is helping those who are studying to become teachers, social workers, nurses and midwives so they can solely focus on upskilling.

Having the opportunity to reflect on some of the stories that we're hearing in this chamber today, including from the member for Indi—the reality is that the universities accord has recommended the government focus on nursing, on care and teaching professions. This is a responsible government responding to advice provided to us to prioritise key roles and courses. The 2023 employment white paper also identified that those in care and teaching professions are key enablers for the economy and that unpaid placements discourage many students in care and teaching professions from enrolling in and completing courses. And, as the Minister for Education has said, the accord is not a plan for one budget but a blueprint for the next decade and beyond.

You've heard today from a number of people on this side of the chamber that we've developed this policy position over a period of time in the Labor Party. I'm very proud that we have made these changes and that we have support in the chamber on this here today. But I understand that there's a lot of work to be done to help those who are studying these particular courses.

Since 1 July 2025, around 73,000 students across Australia have been eligible for $331.65 each week. It is the first time ever that a federal government has provided financial support to students while they complete their mandatory prac placements; I think it's pertinent to highlight that. There is a review, and there is opportunity to expand, but this is a conversation that we can continue to have not only in the chamber but outside as well. It's important to highlight that this is the first time that a Labor federal government has introduced this. We're starting with students who are studying nursing, midwifery, teaching and social work, to address the urgent need for more students in these areas. Going back to the universities accord, it's talking about particular courses of priority and focusing on the skill shortage.

To further support students with the cost of living, Labor is cutting 20 per cent from everyone's student debt. I know that, in my electorate, this message has been well received. You can see from the results of the election that it is something that people supported and voted for. I am really proud that we will be able to deliver that in the coming days.

I again thank the member for Indi for her contributions and also the member for Mayo for sharing the experience with her daughter. As someone who's also taught students and who has experience of supporting students at the University of Sydney and in my capacity at St Vincent de Paul, I completely understand these challenges.

Monique Ryan (Kooyong, Independent) Share this | Link to this | Hansard source

The cost of tertiary education shouldn't hang over Australians' heads for the whole of their working lives, and, while they're studying, they shouldn't be anxious about where they're going to sleep and what they're going to be able to eat because they can't cover the cost of their practical placements. Earlier this year, I welcomed the introduction of the Commonwealth prac placements for nursing, midwifery, teaching and social work students, but my position has always been—as the member for Indi's has, and I thank her for moving this motion—that this payment should apply to all courses in the care sector.

When I was a medical student, accommodation was free. Caffs were cheap, but those days are gone. Medical students now have to cover the cost of professional registration, working-with-children checks, police checks, travel and accommodation, all while they are strictly limited in their ability to work to support their living expenses. Cost-of-living pressures mean that the proportion of students who have to support full-time study with full-time work has doubled, from one in 14 students in the 1990s to one in seven in 2023.

In expecting students to undertake unpaid prac placements, we're therefore asking some of them to effectively work three full-time jobs. Medical students are required to undertake 2,000 hours of unpaid clinical placements, often well away from home in rural and regional settings. Occupational therapy students are required to undertake 1,000 hours of unpaid placement, including regional rotations with no travel support and no accommodation support. It's similar for podiatry students, who undertake up to 1,200 hours.

The Australian Society of Medical Imaging and Radiation Therapy recently found that placement poverty, which they define as experiencing significant financial hardship while on tertiary placements, affects 75 per cent of medical imaging students during their 56 weeks of placement. Nearly a quarter say that they cannot support themselves. Many consider dropping out. Others have already left their courses because the financial strain is just too great, especially for those students who are juggling work, study and care responsibilities.

When Australia faces significant and ongoing shortages of GPs, medical specialists and virtually all allied health disciplines and mental health supports, it is inexplicable that the government is not doing everything possible to help all students complete their training. Education and training should be an opportunity available to every Australian. It shouldn't be a financial burden, but, for too many of our students, prac placements mean stress and anxiety more than they mean engagement, fulfilment, skills development and learning.

Every time I raise this issue on social media, my DMs and my email inbox are flooded with stories from students from around Australia, which reinforces that prac-placement poverty is real and it is hurting our future workforce. I've heard from young women who are being forced to sleep in their cars, to skip meals and to then defer their studies so that they can save for a year so they can complete their prac placements. Some give up because of the stress and the financial burden; they never go back to study. Those young people will be left with debt and regret, but no diplomas or degrees. That is a failure of policy and it's a failure of government.

Prac placements are also a question of gender equity because more students in the care sector are female than male, and it's a question of intergenerational equity. The young people who are now undertaking tertiary studies are the generation which in the middle of a compounding cost-of-living crisis, housing crisis and climate crisis are being burdened with unprecedented levels of personal debt simply through their desire to train and to equip themselves with the skillsets that they need for their adult lives.

This is a generation which understands that Australian university students contribute more to government revenue than the oil and gas industry do in resources tax. What does that say about our government, what does that say about its principles, and what does that say about its priorities? I call on the government to recognise this education crisis for what it is. We owe it to the next generation to do better for these students. If we invest in them now, we invest in the future wellbeing of every Australian.

Matt Gregg (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

I would also like to extend my thanks to the member for Indi for raising this very important topic, which relates to paid practicums. I remember, about 12 years ago now, being a student teacher and living in a caravan in Dimboola while completing a regional placement. It is a hard slog trying to juggle the cost of living, which for many students is a week-by-week proposition, and the significant expense of trying to make it through a placement without incurring unimaginable debt. That's why I'm so proud that, for the first time in its history, the Australian government has stepped up and taken decisive action in response to practicum poverty, which does occur.

For the first time, we're seeing over $330 a week paid to students in teaching, nursing, midwifery and social work. It is just the start of this mission. It reflects the Australian Universities Accord's final report, which indicated an initial introduction where government funds the payments to particular course areas but which also indicated that we need to consider placement poverty across other areas as well, including allied health. And there is certainly more consideration to be given to how we support those students as they complete their sometimes far lengthier placements. For this model, the Commonwealth has stepped up and used Commonwealth funds to pay the cost of the initiative. I think it's an incredibly important part of the government's work in supporting young people on their education journey—which is work that begins from child care, which is full and fair funding for our public schools, which is free TAFE, which is increased support for our university sector and which is a clear set of policies to support the future of higher education moving forward.

It's incredibly common for students to be living week by week and covering the rent at home while they're on a placement—particularly if the placement happens to be far from where they live. I've met a number of students who have gone through that. I've met students in the past who have failed their placement simply because they couldn't sustain the costs, or those that didn't start them at all because they simply could not afford to not work for two weeks without finding themselves in dire financial straits. This reflects, then, a real acknowledgement of the problem. I think it was important, despite covering the scope of initial recommendations, that the government put in a three-year timeframe for the review of the paid practicum placements, knowing that it would need to revisit its scope and how it's put into effect, and, as has been said by previous speakers, with an eye to whether it is necessary to expand the program to other areas as well, including allied health.

We should be incredibly proud of the initiative this government has put in to ensure that the initial investment takes action to deal with placement poverty—knowing full well that this is not the end of the story and that this is going to likely be the beginning of one. Nevertheless, it's an important step. But the investment needs to also be seen in the context of the vast amount of reform we're seeing from this government in the education space. This isn't just a single initiative and 'that's all we've done in the education space'. Given the amount of time we've been in government, it's actually extraordinary when you reflect on the amount of work this Commonwealth government has done to support the education of Australian citizens across ages and across disciplinary spectrums. I'm incredibly proud to be part of a government that maintains an eye on the prize.

As we've heard in the House today, people across the political spectrum want to ensure that young people have reason to be optimistic about their futures, but the crossbench and Labor alike are keeping a close eye on this, and we're keen to ensure that students at university are supported and that they don't find themselves in poverty simply for working towards the kinds of careers we really need in our community. We need to ensure that we understand this debate in its full context, and what we're referring to is an extraordinary program introduced by this government. I'm looking forward to the review, and I have no doubt that these support payments for those in placement are going to make a huge difference to their lives as they train in some of the most important professions out there. Thank you very much.

Sophie Scamps (Mackellar, Independent) Share this | Link to this | Hansard source

I too welcome the member for Indi's topic for debate today, because it truly is a matter of public importance. I really appreciate, as well, the contributions from those opposite who obviously have a really strong passion for education and further investment in education as well. But our young people are doing it tough right now, and the lack of financial support for students doing mandatory prac placements is an important aspect of this. Today's generation of students are navigating an environment of high living costs—the costs of rent, groceries, transport and utilities—and this leaves students across the country struggling to make ends meet.

On top of these financial challenges, mandatory placements are forcing students into real hardship right now, because of the inability to earn an income over long periods of full-time practical training and because of the need to pay rent, sometimes on top of their usual rent. For many the choice is stark—sacrifice basic needs or jeopardise their education. Too often, young students are skipping meals, living in their cars and making the difficult choice about whether or not to give up on their dreams and drop out of their studies completely. They are being forced into vulnerable situations. This growing economic strain threatens not only student wellbeing and safety but also the sustainability of our future health workforce.

The introduction of the Commonwealth Prac Payment scheme on 1 July this year was timely, necessary and very welcome. Supporting nurses, midwives, social workers and teachers during their compulsory placements has been widely welcomed as a positive step towards addressing acute workforce shortages in schools, hospitals and aged care. While this targeted measure aims to boost enrolments and retention in these critical sectors, it disregards comparable placement demands and workforce shortages in other disciplines. For thousands of students undertaking allied health and medical degrees, amongst other things, compulsory unpaid placements mean financial stress, emotional strain and physical exhaustion. And they are not alone; it's also impacting students in veterinary sciences, engineering and agriculture, amongst many others.

The focus of our debate today is allied health, so I'm going to read out some testimonials from people who are currently studying medical radiation science, dietetics and occupational therapy—professions vital to medical diagnosis, cancer treatment and chronic disease prevention and management. One student stated:

I go without food, and work outside of placement hours to afford accommodation—this cycle is exhausting and restrains my time to study whilst on placement.

Another said:

Being able to work and support myself during a full time 36-week placement has been virtually impossible and incredibly stressful. It has had a huge impact on my mental health.

Another said:

I feel extremely burnt out and exhausted and struggle to apply myself on placement academically.

Another said:

There is an assumption that we all live at home with parents that can afford to support us, when many of us don't. I feel that financial stress has greatly impacted by grades and health over the placements these past three years.

I have considered dropping out many times …

Lastly, another said:

There are people who are living in their car so they can afford to be on placement.

These are not isolated stories. They paint a dire picture—students facing homelessness, skipping meals and living in unsafe conditions right now. We are burning out our young people before they even start their careers. How can this be acceptable?

By not supporting our allied health and medical students, we are jeopardising the development of the future health workforce Australia desperately needs. Allied health professionals, collectively, are the largest health workforce in primary care. They represent the second-largest clinical workforce in Australia, after nursing and midwifery. Mackellar student Courtney, who is currently on placement in Ballarat as part of her masters of dietetics, said that many allied health students feel that their ineligibility for the prac payment is a kick in the guts that some professions are more valued than others.

Let's ensure that no student is forced to choose between living in their car and their education. I urge the government to develop a roadmap that lays out a pathway to add all courses that have mandatory prac components to the scheme, including allied health and medical students. If we fail to act, we not only fail these students, but the future health of our nation.

Sharon Claydon (Newcastle, Australian Labor Party) Share this | Link to this | Hansard source

The discussion has now concluded.