Next ‘placement poverty’ payment is a ‘slap in the face’, student groups say

Student groups have described a Commonwealth payment aimed at tackling “placement poverty” as “a slap in the face” that is too little, too late, and have raised concerns that a means test will restrict access.

On Monday it was announced that a means-tested weekly payment of $319.50 would be available to teaching, nursing and social work students undertaking unpaid work experience placements from July 2025.

Before graduating, social work students must complete 26 weeks of unpaid internship, nursing students 20 weeks, and teaching students 16 weeks.

Earlier this year, students in those camps told ABC they had been paying universities “for the privilege of being exploited” and had to choose between doctor appointments and food just to meet course requirements.

Siena Hopper, a representative of the advocacy group Students Against Placement Poverty, said the next payment was not enough.

“Students in teaching, social work and nursing are paid 35 percent below the poverty line for doing essential jobs. There is no other industry where you don’t learn on the job. No “There is no reason for people to be paid $8 an hour for essential training,” he said.

Hopper said his organization had already been inundated with messages from students across all sectors since the government’s announcement.

“People just feel disrespected…not to mention the dozens of other sectors that don’t get any funding,” he said.

“At the moment, it also doesn’t mention anything about the inclusion of international students, and they also do means testing, which is horrible.

The National Union of Students said that while the move would provide some relief to those struggling, it was not a meaningful long-term solution.

“The reality is that placement poverty will not end until all students on compulsory placements are paid at least the minimum wage and the Fair Work Act is amended to make unpaid placements illegal,” President Ngaire Bogemann said in a statement.

“Completely discouraged”

Kate Domenici is a social work student who has already delayed her studies for a year to save for the 1,000 internship hours (i.e. 26 weeks full-time) needed to graduate.

You are about halfway through your mandatory placement and need help from your partner and family to cope with the cost of living crisis.

“You feel exhausted thinking about it every day. You think, ‘Oh, I have to wait until I get paid on Wednesday to go get food’ for that week and then maybe I can only afford to eat one meal a day.” Mrs. Domenici said.

She was excited when she first heard about the new payment, but it turned to despair when she realized it wouldn’t start until July 2025, after she graduated.

She said she briefly considered postponing access to the payment again, but quickly ruled it out as too disruptive to her dream of working as a social worker.

“When… I saw that it would be ready next year through a means test, I was completely discouraged,” she said.

Medical students are required to complete 2,000 hours of internship and were very disappointed to miss out on the program.

“It is vital that nurses, teachers and social work students are supported, but it is equally important that the government considers the way that medical degree requirements almost uniquely encourage placement poverty,” Allen said Xiao, president of the Australian Medical Students Association.

Xiao said universities required internships to be done full-time, leaving students with very limited ability to support themselves.

Sometimes, students may even have to pay double rent if they have to travel long distances for internships, especially if they study at a university in the regions.

Xiao said the lack of support was affecting medical students from underserved communities.

“Many of the students affected by the lack of support do not have many resources or family support during placement and are the doctors we need most. They return to the country or to low socioeconomic communities to work,” he said.

What has the government said?

Unpaid placements were flagged as an area in need of serious reform in the University Agreement, the biggest overhaul of the sector in decades.

Education Minister Jason Clare said teaching, nursing and social work students have “signed up to do some of the most important jobs in this country”.

“Many students have told me that this has forced them to drop their courses or delay completing their studies. And this is a practical aid to help people do the practical part of their studies,” he said.

Charging…

He defended the initial offer when asked about the exclusion of other students whose courses require internships.

On Sunday, the government announced changes to student loan indexing that it said would eliminate $3 billion in HECS-HELP payments.

Clare said the government would outline the “full first stage” of its response to the University Deal in next week’s budget.

Greens education spokesperson Mehreen Faruqi said the announcements so far would not touch on aspects of the cost of living crisis.

“Students should receive at least the minimum wage for their internship work, not a smaller supplemental amount,” Senator Faruqi said in a statement.

“Who knows how many students will be harmed by means testing? The devil is in the details.”

Charging…