Australia’s Student Support Reform: A Missed Opportunity for Inclusion

Support for Some, Exclusion for Others: Debate Grows Over Student Placement Aid

In a landmark policy shift aimed at addressing the long-standing issue of “placement poverty,” the Australian Government has introduced financial assistance for thousands of university and TAFE students undertaking mandatory placements, effective from 1 July. This initiative, widely welcomed by student advocates, seeks to alleviate the economic strain on those enrolled in teaching, nursing, midwifery, and social work programmes, fields where unpaid placements are both essential and financially burdensome.

Under the scheme, eligible domestic students will receive $331.65 per week, aligned with the single Austudy rate, during their placement periods. However, despite its significance, critics argue that the measure does not fully address the broader cost-of-living challenges faced by students. The payment, equating to approximately $60 per day or $8 per hour, excludes many disciplines, prompting renewed calls for a more inclusive and equitable approach to student support.

To qualify, students must earn less than $1,500 per week and have worked more than 15 hours weekly in paid employment before commencing their placement. Notably, international students are excluded from the scheme. The government estimates that around 68,000 higher education and 5,000 vocational education and training (VET) students will benefit from this means-tested support annually. This policy follows a key recommendation from the Universities Accord, which was presented to the federal government last year. The report emphasised that financial support for mandatory placements was essential to prevent student poverty, reduce dropout rates, and ensure degree completion. It also recommended prioritising support for professions in teaching, nursing, and care work.

Education Minister Jason Clare acknowledged that while students could often afford tuition, unpaid placements posed a significant financial barrier. He noted that many students were forced to quit part-time jobs during placements, making it difficult to meet basic living expenses. The policy, he stated, is designed to support those preparing for vital public service roles. The announcement gained widespread attention after Prime Minister Anthony Albanese promoted the initiative on TikTok in mid-June. The video, which garnered 1.3 million views, sparked mixed reactions; some applauded the move, while others questioned the exclusion of their disciplines.

In response, the Greens, alongside advocacy groups such as Students Against Placement Poverty (SAPP) and the Australian Medical Students Association (AMSA), urged the government to expand the scheme to include all students undertaking mandatory placements and to raise the payment to at least the minimum wage. Degrees with intensive practical components, such as veterinary science, medicine, occupational therapy, physiotherapy, paramedicine, and psychology, remain excluded.

Greens Deputy Leader and higher education spokesperson Mehreen Faruqi criticised the policy as overly complex, poorly targeted, and insufficient to provide meaningful relief. Similarly, SAPP’s Siena Hopper argued that a scheme intended to deliver a living wage had devolved into another bureaucratic obstacle. She contended that students should not have to justify their entitlement to payment, particularly when trade apprentices receive consistent financial support.

AMSA expressed disappointment over the exclusion of medical students, who are required to complete 2,000 hours of full-time placements. The association highlighted the toll of academic pressures, citing burnout and dropout rates, and emphasised that medical students are integral to the healthcare workforce, a reality underscored by recent junior doctor strikes in New South Wales, where students were asked to fill staffing gaps.

These reforms form part of a broader transformation in higher education policy, which also includes the cancellation of $3 billion in student debt, the establishment of a student ombudsman, and the expansion of fee-free TAFE places. Minister Clare reaffirmed that students would remain central to Labour’s agenda this term, with the next phase of reforms focusing on demand-driven support for underrepresented groups and a shift towards a needs-based funding model.

From 1 July, the newly established Australian Tertiary Education Commission will begin reviewing higher education funding structures. This includes a reassessment of the widely criticised Job-Ready Graduates scheme, which increased fees for humanities courses to subsidise lower fees in priority areas such as teaching, nursing, science, mathematics, and engineering. Nearly five years on, the cost of an arts degree has reportedly risen to approximately $50,000. While the new placement payments mark a step forward, the path to a truly equitable and inclusive education system remains unfinished.

Editor’s Note:

The Australian Government’s new payment scheme for student placements is an important and overdue step. It recognises the unpaid work students do while training for key roles in society. For students in teaching, nursing, midwifery, and social work, this financial help is a welcome relief that shows the government understands the struggles many face during mandatory placements. Students in other demanding courses, like medicine, allied health, psychology, and veterinary science, are still left without any help, even though they also complete long unpaid placements. The rules for who can receive payments are also too strict, making it harder for many who truly need support to access it. If the goal is fairness and helping more students stay in university, the policy needs to include a wider range of experiences and needs. The amount offered doesn’t fully reflect the hard work, skills, and emotional effort students put into these roles, all while balancing studies and personal life. In comparison, trade apprentices get steady wages while they train, which raises fair questions about equal treatment for all students.

Skoobuzz firmly believes that the government needs to create a funding system that is fair and inclusive, making sure that no student should have to choose between continuing their education and paying their bills. All students, whether studying health, education, science, or care, deserve equal support.