In its 2024-25 Budget, the Australian Government committed $427.4 million over four years to establish the Commonwealth Prac Payment to support higher education and VET students while undertaking mandatory placements. From 1 July, eligible domestic students will be able to access $331.65 per week.

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What is the Commonwealth Prac Payment?

From 1 July 2025, the Australian Government will provide a new Commonwealth Prac Payment (CPP) to support nursing and midwifery students while they are undertaking mandatory clinical placements.

Who is it designed to support?

After lobbying from organisations including the ANMF, the payment was introduced to help students experiencing ‘placement poverty’ manage the significant financial costs associated with completing their placements. These include loss of income from their usual jobs and paying for a range of out-of-pocket costs such as travel and tolls, accommodation, parking and uniforms.

How much will students receive?

Under the CPP, eligible students will receive a weekly amount of $331.65, benchmarked to the single Austudy rate for 2025.

When does it start?

University students (Bachelor and Masters) will be able to access the CPP from 1 July 2025. The ANMF recommends that you apply as soon as possible once available via your higher education provider.

For students enrolled in a Diploma of Nursing at TAFE or Registered Training Organisation (RTO), the CPP (VET) is being delivered by the Department of Employment and Workplace Relations. Applications are now open

Am I eligible?

• Yes, if you are a domestic student or permanent resident or New Zealand citizen.  International students are not eligible for the CPP.
• Yes, if you are enrolled in a nursing or midwifery degree OR enrolled nursing diploma course.  You can be studying full or part-time.
• Yes, if you are enrolled in an approved placement unit with a confirmed placement arranged with your education provider.
• Yes, if you are undertaking a mandatory placement that is on average 30 hours or more per week for the duration of the placement, or:
• Yes, you are undertaking a continuity of care placement (as part of a course of study in midwifery) which prevents the student from being able to maintain paid work due to the need to ensure their availability during the placement.
  
  

Yes, if you meet ONE of the following criteria:

1. Be on a Commonwealth income support payment (eg, ABSTUDY, Austudy, Youth Allowance or DVA Education Allowance). OR
2. Meet means testing criteria based on how much you work and earn.
   
   

What is the means testing criteria?

• You need to work more than 15 hours per week during your normal studies to support yourself financially. You will need to demonstrate you work on average more than 15 hours a week either in the four weeks prior to applying for CPP or the four weeks prior to commencing your placement, (whichever is earlier). 
  
  

AND

• You do not earn more than $1,500 per week (pre-tax) on average during the same period. It must include any money earned by scholarships or government assistance.
• There are no assets or partner income tests required.
  
  

I have some exceptional circumstances. Can I still apply?

If you’re at risk of  ‘placement poverty “ and experiencing exceptional circumstances that prevent you from meeting the income or placement-hours eligibility criteria (but you meet all other requirements), you may still be able to receive the payment.

This could include:

• Where a student has a disability, illness or caring responsibilities and has a demonstrated need to change the number of placement hours to less than 30 hours per week on average as part of reasonable adjustments
  
  

Your education provider will assess your application on a case-by-case basis. If your application is accepted, you’ll receive payment only for the weeks you were affected by exceptional circumstances. 

How do I apply?

• University students apply through their education provider. You will be required to apply with supporting documentation prior to going on your clinical placement.  This information will be relevant to your own individual circumstances. Further details on how to apply will be made available via your education provider. 
• For students enrolled in a Diploma of Nursing at TAFE or Registered Training Organisation (RTO), the CPP will be delivered by the Department of Employment and Workplace Relations.
• Applications for the CPP (VET) are now open
• You cannot apply for CPP placements that occur before 1 July 2025.
  
  

Is the CPP taxable?

• The CPP is taxable as income. This is your responsibility that you comply with your own tax liabilities and reporting obligations with the tax office. 
  
  

Will the CPP affect my Income Support Payment?

Students who receive Income Support Payments such as ABSTUDY/Austudy will be responsible for reporting their CPP payments to Services Australia, just like current obligations for other forms of income and financial assistance.

When will I know if I have been successful?

You will receive an email to notify you if have been successful. If your application is approved, you will receive a single upfront payment for each placement into your nominated bank account.  The education provider will aim to provide you with your payment as close to the start date of placement as possible.

What happens if my application is rejected?

Please discuss the outcome with your education provider to understand why your application has been rejected.  Normal grievance procedures are allowed for all applications.

Further information

More information about the Commonwealth Prac Payment can be found here