The Speech pathology students will become eligible for the Commonwealth Prac Payment from 1 July 2027 under an expansion announced by the Albanese Government, a move welcomed by Speech Pathology Australia as a way to ease financial pressure on students and help address workforce shortages.
Prime Minister Anthony Albanese announced the policy at the Labor National Conference, confirming that speech pathology is among ten additional health professions being added to the scheme. Eligible students will be able to receive up to $338.60 a week, subject to means testing and annual indexation, while completing mandatory clinical placements.
Speech Pathology Australia said the announcement follows sustained advocacy by the organisation, Allied Health Professions Australia, students, allied health professionals and supportive crossbench parliamentarians, including independent MP Helen Haines and Senator David Pocock.
The organisation has argued that compulsory unpaid placements place many students under financial strain, forcing some to reduce their studies or leave their courses before graduating. Speech pathology students are required to complete extensive clinical placements as part of their degree, often limiting their ability to earn an income during that period.
Speech Pathology Australia Chief Executive Lyn Brodie said the expanded payment would benefit both students and the communities waiting for speech pathology services.
“This is a genuine win for speech pathology students, and for the families and communities who are relying on a stronger workforce in the years ahead,” Ms Brodie said.
“For too long, students have had to choose between paying rent and completing the placements they need to graduate. That’s not a fair choice to ask anyone to make.”
She said many members continue to report workforce shortages, particularly in regional Australia, where patients often face lengthy waits for speech pathology services.
“This announcement goes straight to the heart of that problem, because it helps make sure the students training right now can actually finish their degree and go on to help fill that gap,” she said.
The Commonwealth Prac Payment currently supports eligible students studying teaching, nursing, midwifery and social work. The expansion will extend eligibility to students in clinical psychology, physiotherapy, occupational therapy, speech pathology, paramedicine, radiography, pharmacy, rehabilitation therapies, audiology and podiatry.
According to the government, eligible students receive $338.60 a week during placement periods. The payment is benchmarked to the single Austudy rate, is means tested and indexed annually.
The government says the expanded scheme is designed to reduce cost-of-living pressures during placements, particularly for students who must relocate to regional or remote areas for practical training. Travel, accommodation and relocation costs have long been identified as barriers to completing placements in areas experiencing health workforce shortages.
Prime Minister Anthony Albanese said expanding the payment would help students complete their qualifications while strengthening Australia’s future healthcare workforce.
“Paid prac is already making a real difference. It’s helping students with cost of living while they train and that’s why we’re expanding it,” he said.
“This is an investment in our future healthcare workforce. We need more of them and this will help more Australians get the qualifications our nation needs.”
Health and Ageing Minister Mark Butler said expanding the payment would support efforts to build Australia’s domestic health workforce and improve access to healthcare.
Education Minister Jason Clare said the assistance would help students cover everyday expenses such as rent, petrol and parking while completing mandatory placements, making it easier for more people to finish their qualifications.
The announcement has also prompted criticism from the Australian Medical Association, which questioned why medical students remain excluded from the expanded scheme despite ongoing workforce shortages.
AMA President Dr Danielle McMullen said extending the payment to additional health disciplines while continuing to leave out medical students “makes no sense”.
“We welcome the inclusion of more health disciplines in the prac payment scheme but the community deserves an explanation from the government about why medical students are once again being excluded from this payment scheme,” Dr McMullen said.
She said medical students are required to complete around 2,000 hours of unpaid clinical placements and argued the financial burden discourages students from lower socio-economic and rural backgrounds from pursuing medicine.
Dr McMullen said supporting medical students through placements would help improve access to healthcare, particularly in rural and regional Australia, where doctor shortages remain acute.
She urged the government to reconsider its decision, saying means-tested support for medical students would complement broader workforce initiatives aimed at increasing the number of doctors in areas facing the greatest need.
The government has presented the expansion as part of its broader cost-of-living measures alongside student debt reductions, tax cuts, cheaper childcare and support for wage growth. While health organisations have broadly welcomed the additional support for allied health students, the exclusion of medical students is likely to remain part of the debate over how Australia builds and sustains its future healthcare workforce.
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