Modern Australian
Men's Weekly

.

What does the new Commonwealth Prac Payment mean for students? Will it do enough to end ‘placement poverty’?

  • Written by Deanna Grant-Smith, Professor of Management, University of the Sunshine Coast

The federal government has announced a “Commonwealth Prac Payment” to support selected groups of students doing mandatory work placements.

Those who are studying to be a teacher, nurse, midwife or social worker will be eligible to receive A$319.50 per week while on placement. This amount is benchmarked to the single Austudy per week rate. Other support payments received by a student will not be affected.

The payment, which is part of the upcoming federal budget, is due to start in July 2025 and will be means-tested (the details of which are still to be worked out). It follows a recommendation from the Universities Accord final report and will be welcomed by many students facing “placement poverty” as they complete their degrees. But is it enough?

Why is a Prac Payment needed?

Unpaid work experience has become a compulsory rite of passage to paid employment in many areas of study.

This experience is thought to increase skills, knowledge, experience and students’ identity in the profession. Research also shows students believe work experience (whether paid or unpaid) builds job and social skills, helps them decide on a career path, and boosts their chances of getting a job when they graduate.

But due to their long hours and intensive nature, unpaid placements can also result in financial stress and have negative impacts on wellbeing as students juggle paid work, study obligations and unpaid work.

Being unable to afford to do mandatory unpaid work can also prevent some students from completing their degree on time or at all.

As more students are expected to undertake long or multiple unpaid placements, this also limits the types and amounts of paid work they can do while studying, making their financial and employment situation more precarious.

Does the plan go far enough?

Many degrees require students to do the equivalent of up to six months’ unpaid work.

For example, social work students are expected to complete 1,000 hours of full-time, unpaid work experience. Education students must do a minimum of 80 days. Both of these student groups will be eligible for the prac payment.

But many other degrees can require hundreds of hours of unpaid placement time but are not supported by the Commonwealth Prac Payment. This means other allied health students, such as occupational therapy students (who must complete a minimum of 1,000 unpaid hours), or speech pathology students who may be required to take a rural or remote placement, are excluded from the payment.

To enhance graduate employability, universities and other tertiary training institutions (such as TAFEs) have also expanded obligatory “work-integrated learning” into fields of study where there are no statutory or professional requirements for it. This includes areas such as urban planning, communication and creative industries, and journalism.

This means students do projects or placements with organisations outside of the university as part of their coursework.

When asked about broadening the set of courses involved, Education Minister Jason Clare told Radio National “that’s something that we’d have to look at down the track”.

Prime Minister Anthony Albanese and Education Minister Jason Clare sit in front of a crowd or primary students.
Prime Minister Anthony Albanese and Education Minister Jason Clare visited a Northern Territory primary school in March. The new payment will help teaching students complete compulsory work experience requirements. Lukas Coch/AAP

Mandatory versus ‘voluntary’ unpaid work

On top of mandatory placements, it is common for students to also do other work experience on their own initiative while studying. Researchers call these “open-market internships”.

Sometimes this is billed as “voluntary” but the lines here can be very blurry. Students can see this unpaid work as necessary to develop networks and fill CVs to become more competitive for graduate jobs.

Unpaid work undertaken as part of a degree or vocational education program is lawful in Australia, but some open-market internships may not be.

Dubious arrangements include interns doing the same work as regular paid employees and undertaking work that does not predominantly involve observing or performing mock or simulated tasks.

What more is needed?

If employers and universities genuinely believe work experience is they key way students become employable graduates, they must find ways of making such experiences accessible to all students. Payment for placements and other meaningful financial support is a good place to start.

For example, earlier this year, the Queensland government announced a $5,000 cost-of-living allowance for eligible final-year nursing and midwifery students who do placements in regional, rural or remote Queensland.

But safeguarding the financial and general wellbeing of students is not just the responsibility of governments. Universities, vocational education and training providers (such as TAFEs) and employers also need to make sure the benefits of unpaid work placements are not outweighed by the costs.

We need to look at new regulations that limit how long an unpaid placement can last, and offer alternatives to unpaid placements, such as “supervised service learning”. An example of this is the National Tax Clinic Program. Run through the Australian Taxation Office, students studying tax-related courses provide free tax advice to individuals and small businesses under the supervision of qualified professionals.

Employers also need to ensure they properly train, induct and pay graduates and students undertaking work that benefits their business.

As the Prac Payment details are worked out and evaluated, we need to make sure the government does indeed look again at the list of eligible courses, to make sure the scheme helps all students who need it.

Authors: Deanna Grant-Smith, Professor of Management, University of the Sunshine Coast

Read more https://theconversation.com/what-does-the-new-commonwealth-prac-payment-mean-for-students-will-it-do-enough-to-end-placement-poverty-229280

Powering Shepparton’s Businesses: Expert Commercial Electrical Services You Can Count On

When it comes to running a successful business, having reliable, compliant, and efficient electrical systems is non-negotiable. From small retail ou...

Maximise Efficiency: Cleaner Solar Panels for Optimal Performance

Solar panels are a smart investment in energy efficiency, sustainability, and long-term savings—especially here in Cairns, where the tropical sun ...

7 Common Air Conditioner Issues in Melbourne – And How to Fix Them

Image by freepik Living in Melbourne, we all know how unpredictable the weather can be. One moment it’s cold and windy, the next it’s a scorchin...

Powering Palm QLD with Reliable Electrical Solutions

Image by pvproductions on Freepik When it comes to finding a trustworthy electrician Palm QLD locals can count on, the team at East Coast Sparkies s...

The Smart Way to Grow Online: SEO Management Sydney Businesses Can Rely On

If you’re a Sydney-based business owner, you already know the digital space is crowded. But with the right strategy, you don’t need to shout the...

What Your Car Says About You: The Personality Behind the Vehicle

You can tell a lot about someone by the car they drive—or at least, that’s what people think. True Blue Mobile Mechanics reckon the car says a l...

The Confidence Curve: Why Boudoir Photography Is the Empowerment Trend You Didn’t Know You Needed

Boudoir photography has been quietly taking over social feeds, Pinterest boards, and personal milestones—and for good reason. It’s not just abou...

Understanding Level 2 Electricians: Why Sydney Residents Need Licenced Experts for Complex Electrical Work

When it comes to electrical work around the home or business, not all electricians are created equal. In Sydney, particularly when you're dealing wi...

Retirement Anchored in Model Boat Building for Waterford’s Doug Unsold

WATERFORD — When Doug Unsold sees his ship come in, it’s usually one he’s crafted with his own hands. The 67-year-old retiree from Waterford ...

The Science Behind Alarm Clocks and Your Circadian Rhythm

Waking up on time isn’t just about setting an alarm—it’s about working with your body, not against it. At the heart of every restful night and...

How to Use Plants to Create a Calming Atmosphere in Your Home

In today’s fast-paced world, cultivating a calm, soothing environment at home has never been more important. Whether you live in a busy urban apar...

How Maths Tutoring Can Help Students Master Maths

Mathematics can be a daunting subject for many students, often causing stress and frustration. However, maths tutoring has proven to be an effective...

Refurbished iPads Are Better Than New Ones (Here's Why)

Image by rawpixel.com on Freepik Apple's refurbished iPad program has quietly become one of the best deals in tech. While everyone obsesses over the ...

Your Guide to Finding the Right GP: What Perth City Doctors Offer Today

Choosing a General Practitioner (GP) is one of the most important health decisions you’ll make. Luckily, Perth’s vibrant CBD now hosts a new ge...

Why Every Mining Operation Needs a Robust Safety Management System

Mining is one of the backbones of the Australian economy, particularly in Western Australia. Back in 2019-20, mining contributed 10.4% of Australia...

Australian Classic Literature Enjoys Resurgence

Welcome back to the good old days of storytelling! As the modern world becomes increasingly more demanding, returning to childhood favourites offers...

How to Choose the Right Lawyers in Sydney for Your Situation

When faced with a legal issue, selecting the right legal representation can make all the difference. Whether you're dealing with a personal injury, ...

Building a Governance Model for Headless Content Management at Scale

Image by pch.vector on Freepik There's never been a better time to implement a headless content management system (CMS) to gain the flexibility and ...