Australia Introduces Weekly $331.65 Support for Eligible Students in Mandatory Placements Starting July 2025
In a landmark move to support students tackling the financial strain of unpaid mandatory placements, the Australian Government has announced the launch of the Commonwealth Prac Payment (CPP) — a weekly stipend of $331.65 set to roll out from 1 July 2025.
This initiative is tailored for students studying in high-demand public service fields like teaching, nursing, midwifery, and social work, who are often required to complete full-time placements as part of their qualifications — placements that frequently make part-time work impossible.
What Is the Commonwealth Prac Payment (CPP)?
The CPP is a financial lifeline created to alleviate the burden of unpaid placements. Recognizing the vital role these placements play in preparing students for critical workforce sectors, the government is stepping in to ensure that financial hardship doesn’t prevent students from completing their training.
Also read: Big CPP Increase
At a Glance:
Start Date: 1 July 2025
Payment Amount: $331.65 per week (aligned with the Austudy single rate)
Eligibility: Only during active placement periods
Also read: Major Age Pension Changes in 2025
Taxable: Yes
Targeted Courses: Teaching, Nursing, Midwifery, Social Work (including Diploma of Nursing through VET)
Minimum Placement Load: 30+ hours/week or continuity-of-care midwifery
Administration: Managed by universities (higher education) and DEWR (VET sector)
Why This Matters: Tackling Financial Barriers and Skill Shortages
The CPP is part of a broader government strategy to combat critical workforce shortages while promoting equitable access to professional education. It follows consultations under the Australian Universities Accord, where stakeholders voiced strong concerns about “placement poverty” and its impact on student success.
With a $427.4 million investment committed over four years (2024–2028), the CPP aims to:
Improve placement completion rates
Boost graduate entry into key public sectors
Provide more inclusive opportunities for students from low-income backgrounds
Who Can Apply for the CPP?
To be eligible for the Commonwealth Prac Payment, applicants must meet a combination of academic and financial requirements.
Academic Criteria:
You must be:
A domestic student
Enrolled in a Commonwealth Supported Place (CSP)
Studying a Bachelor’s or Master’s degree in Teaching, Nursing, Midwifery, or Social Work
Or enrolled in a Diploma of Nursing through a Vocational Education and Training (VET) provider
Placement Requirements:
The placement must be mandatory
Must involve 30 or more hours per week, or
Be a continuity-of-care midwifery placement (where paid work isn’t feasible)
Financial Requirements (Meet One of the Following):
Receiving Income Support, such as:
Youth Allowance
Austudy
ABSTUDY
JobSeeker Payment
Parenting Payment
Veteran-related allowances
OR
Passing the ‘Need to Work’ Test:
Worked 15+ hours per week in the four weeks before the placement
Earned under $1,500 per week (pre-tax)
Students facing challenges due to disability, health issues, or caring responsibilities may also qualify under exceptional circumstances with proper documentation.
How Will It Work?
Depending on the type of program, different agencies will handle the rollout:
Universities: For higher education students, universities will oversee applications and disbursements.
Department of Employment and Workplace Relations (DEWR): Will manage payments for VET students.
An online application portal is expected to go live by mid-2025, with institutions responsible for:
Verifying course and placement eligibility
Confirming financial status or Centrelink payments
Authorizing weekly payments for the placement duration
Students will likely need to reapply or update their details for each new placement.
Who Benefits — and How Many?
The CPP is expected to make a significant impact:
68,000 university students each year
5,000 VET students annually
The support is designed to stop students from delaying or dropping out of their studies due to the income loss associated with full-time placements.
Future Plans and Expansion Possibilities
Although the initial rollout is focused on four disciplines, there’s growing advocacy to broaden the scheme. Areas under consideration for future inclusion include:
Allied health programs like physiotherapy and occupational therapy
Medical internships
Aged care placements
Student bodies and education experts are also calling for:
An increase in the weekly amount
Making the payments tax-free
Support for part-time students
Inclusion of unpaid internships beyond formal placements
What’s Not Covered? Key Limitations
To set clear expectations, here’s what the CPP won’t cover:
International students
Voluntary placements
Placements prior to 1 July 2025
Fields outside teaching, nursing, midwifery, and social work
Non-CSP or full-fee paying students
Shorter placements under 30 hours/week, unless special circumstances apply
Final Thoughts: A Welcome Step Toward Fairer Education
The Commonwealth Prac Payment is a long-overdue policy addressing a well-known challenge: students being financially penalized for meeting course requirements. While its scope is currently limited, it’s a major win for thousands of future professionals preparing to serve Australia in critical sectors.
Students planning placements after July 2025 should stay in close contact with their universities or training institutions for updates on application timelines, required documentation, and eligibility checks.