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Australian Government Introduces Commonwealth Prac Payment for Students

The Australian Government has introduced the Commonwealth Prac Payment (CPP) to assist students facing financial challenges during mandatory practical placements. Starting from mid-2025, eligible university and TAFE students will receive a weekly payment to alleviate the financial strain caused by unpaid practical work requirements.

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Many students, particularly those in health and education fields, are mandated to complete extensive hours of practical work without compensation, often leading them to reduce or abandon their part-time jobs. The CPP, amounting to $331.65 per week, aims to mitigate this financial burden and address the issue of “placement poverty” that students face.

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While the program has garnered mixed feedback since its recent announcement, it currently excludes international students from receiving the CPP benefits during practical placements. As discussions evolve and public pressure mounts for greater inclusivity, there may be revisions to the eligibility criteria in the future.

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As of now, the CPP is accessible to students pursuing nursing, midwifery, teaching, or social work courses. The payment will be distributed through educational institutions and is subject to financial eligibility criteria, including the Need to Work Test and Income Test, making it a taxable income for recipients.

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Despite being viewed as a positive initial step, the CPP has faced criticism for its limited scope. Deputy Green Leader Mehreen Faruqi has criticized the program for being overly complex, inadequately targeted, and offering insufficient financial support, with the weekly payment falling significantly below the minimum wage in Australia.

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Moreover, the selective nature of the program rollout has sparked concerns about fairness and equity within the education sector. Various fields, including medicine, veterinary science, occupational therapy, paramedicine, and psychology, with substantial practical placement requirements, have been excluded from receiving the CPP benefits.

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For international students who are ineligible for the CPP, there are alternative options to seek financial assistance. While scholarships specifically supporting mandatory practical placements may be limited, international students can explore various scholarship opportunities to alleviate financial strain. Additionally, seeking support from educational institutions, student unions, and community services like the Salvation Army and City Mission can provide additional aid.

It is essential for international students facing financial challenges during practical placements to explore available resources and support services. While the current exclusion from the CPP is a setback, advocating for broader inclusion and support for all students remains crucial. The contributions of international students to Australian campuses and communities underscore the importance of addressing their financial needs during educational pursuits.

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