Independent Member for Indi, Dr Helen Haines MP, and ACT Independent Senator David Pocock say ending placement poverty for the next generation of Australia’s health workforce is within reach according to costings from the Parliamentary Budget Office (PBO) they commissioned.
Dr Haines and Senator Pocock independently commissioned the PBO costings, which show that expanding the Commonwealth Prac Payment Scheme to include medical and allied health students would cost just $290 million over the four years of the forward estimates.
Following strong advocacy from advocates and the crossbench, the Albanese Government to their credit commenced the Commonwealth Prac Payment on 1 July 2025 for nursing, midwifery, teaching and social work students.
However Dr Haines, Senator Pocock together with advocates and other crossbench colleagues are pushing for the payment to be expanded in line with the recommendations of the Universities Accord Final Report.
The PBO costings coincide with the release of new survey data from the Health Students Alliance showing 42% of students were going hungry while on placement.
“Unpaid mandatory placements are pushing thousands of students into financial hardship at a time of acute workforce shortages and a cost-of-living crisis,” Dr Haines said.
“These costings show that ending placement poverty is both achievable and affordable. Failing to act is a political choice, not a budget constraint.”
“At a time of severe health workforce shortages - particularly in rural and regional areas - the Government can’t afford to let unpaid placements become the barrier that stops students from completing their degrees.”
Senator Pocock’s PBO costings also modelled the cost of lifting the payment rate from the current $338.60 per week benchmarked to the single Austudy per week rate while undertaking the placement.
“Most Australians have experienced firsthand the impacts from the acute shortage of qualified professionals, from psychologists to dentists to speech pathologists. Extending Commonwealth Paid Prac to enable more Australians to qualify in the professions we so desperately need makes sense and will help ease that shortage,” Senator Pocock said.
“Over the longer term it will cost the Federal Government more if they fail to support the pipeline of medical and allied health students Australians right around the country rely on.
“Investing some $80 million a year in expanding a means-tested payment to enable more people from all backgrounds - be they First Nations peoples, people with disability, single parents or single income households - will improve equity and make sure we are training and qualifying the medical and allied health professionals we need, not just the ones who can afford it.”
Dr Haines and Senator Pocock have partnered with peak body Allied Health Professions Australia to launch an online petition calling on the Federal Government to expand the Prac Payment Scheme.
“Extending the Prac Payment to allied health students is not optional – it’s essential,” said Bronwyn Morris-Donovan, CEO of Allied Health Professions Australia.
“Unpaid placements hit hardest for rural students, mature-age students with caring responsibilities, Aboriginal and Torres Strait Islander students, and anyone experiencing financial disadvantage. Expanding Prac Payments is crucial for building a more diverse workforce and ensuring every student has a fair chance to complete their training.”
“We welcome the support of MPs standing with us. Addressing this gap in Commonwealth Prac Payments is a practical, immediate step the government can take to strengthen the pipeline of allied health professionals Australia urgently needs.”