What healthcare students need to know about the Commonwealth Prac Payment

Are you completing a practical placement as part of a nursing, midwifery or social work course?

Starting 1 July 2025, eligible nursing, midwifery and social work students in Australia can access financial support through the Commonwealth Prac Payment (CPP). The Australian Government announced in the 2024-25 Federal Budget an investment of $427.4 million over the coming four years to make the placement process more manageable for an estimated 68,000 healthcare and education students.

The Commonwealth Prac Payment is an initiative designed to ease cost-of-living pressures by providing financial support to students while they complete the mandatory placement requirements of their course. As Education Minister, Jason Clare announced in a 2024 media release, “this is practical support for practical training”.

If you're pursuing a healthcare course with placement requirements, this article gives an overview of the Commonwealth Prac Payment is, what it’s for, eligibility criteria and how to apply for this government payment.

What is the Commonwealth Prac Payment and how does it work?

The Commonwealth Prac Payment (CPP) is a weekly payment that supports nursing, midwifery and social work students during mandatory practical placements. It’s applicable to both full-time and part-time students. A separate CPP payment application can be made for each placement due to be completed.

Attending placement as part of a healthcare degree is a substantial time investment away from work and family commitments. However, it is an essential component that students must undertake and complete in order to meet their course requirements. The CPP can help ease the financial burden related to missing work as well as offsetting other placement-specific costs, such as travel and accommodation.

The CPP is a means-tested payment, which means it’s intended to help the students who need it most and those who are at an increased risk of placement poverty. This allows students to focus on completing their prac requirements, finish their course and become a qualified healthcare professional in their respective field.

How much is the Commonwealth Prac Payment?

Eligible students will receive $331.65 per week throughout their mandatory prac placement, in alignment with the single Austudy rate. The payment continues for the duration of the placement and is disbursed on a weekly basis.

What can the CPP be used for?

The Commonwealth Prac Payment is specifically intended to help students manage prac-related costs and alleviate the loss of income as a result of completing practical placements. It can be used for various expenses including travel, accommodation, uniforms, food, living expenses and essential items required to complete your placement.

How are these payments received?

Payments are delivered to you via higher education and university providers. If you’re enrolled in a Commonwealth Support Place (CSP) bachelor’s or master’s degree in nursing, midwifery or social work, you’ll apply and be paid through your tertiary education provider.

Commonwealth Prac Payment eligibility

To be eligible for the CPP, you must:

1. Be a domestic student

2. Be enrolled in a CSP bachelor’s or master’s program for nursing, midwifery or social work

3. Be completing a clinical or practical placement that is an average of 30 hours or more per week or completing a continuity of care placement in a midwifery course

4. Either be the recipient of a Centrelink Income Support Payment or Department of Veteran’s Affairs (DVA) education allowance or satisfy both the 'Need to Work' and ‘Income Test’

Centrelink Income Support Payments

Examples of Centrelink Income Support Payments include the age pension, ABSTUDY, Austudy, carer payment, disability support pension, jobseeker payment, parenting payment, special benefit, farm household allowance and youth allowance.

‘Need to Work Test’ and ‘Income Test’

The means-testing criteria for the CPP involves meeting the ‘Need to Work Test’ and ‘Income Test’. You’ll need to prove your need to work during your normal studies by demonstrating that you worked, on average, greater than 15 hours per week, either in the four weeks before applying for the CPP or the four weeks before you commence your placement – whichever is earlier.

Additionally, you’ll need to demonstrate that you did not earn, on average, more than $1,500 per week (before tax) during that same period. To substantiate the above information, you’ll need to provide documentation such as payslips or a letter from your employer which clearly shows the hours you worked and the invoice received.

How to apply for the Commonwealth Prac Payment

To receive the Commonwealth Prac Payment, you must already be enrolled in an eligible course and apply via your university when the initiative launches. Ensure you meet the eligibility criteria and have your supporting documentation ready. Confirm with your specific university on their application process relevant to your course.

What financial support options are available if I’m not eligible for the Commonwealth Prac Payment?

There are other government and university-based financial avenues available to help manage the cost of completing your placements if you don’t qualify for the CPP.

If you’re undertaking placements in rural and remote parts of Victoria, the Rural Placement Support Payment from Going Rural Health is an initiative that supports around 1500 allied health and nursing students annually. This organisation partners with the University of Melbourne and other nationally recognised universities to provide financial support, accommodation and wellbeing services for students completing rural placements. Depending on your university, you may be eligible to receive approximately $150 per week of placement, payable as a one-off sum upon the successful completion of your placement.

In Queensland, the Nursing and Midwifery Regional, Rural and Remote Student Placement Allowance is offered to students completing their final year placements of their pre-registration nursing or midwifery studies in regional, rural or remote areas of the state. The allowance offers a $5,000 one-off allowance to eligible students to support cost of living expenses.

GlobalHealth Education’s Healthcare Education Scholarship is a $5,000 scholarship to help support the costs of completing an undergraduate or postgraduate healthcare degree. It’s available to Aboriginal or Torres Strait Islander students studying (or planning to study) a bachelor’s or master’s in healthcare at an Australian university. The recipient can use funds to help cover tuition fees and placement-related costs, including learning materials, travel and accommodation costs and equipment.

Frequently asked questions about the Commonwealth Prac Payment

When does the CPP initiative begin?

The CPP is available for placements that commence on or after 1 July 2025. Placements that commence prior to this date are not eligible for a CPP.

How long can I receive these payments for?

The duration of CPP payments is capped at the minimum required placement period set by the accrediting authority for your discipline to qualify you as a professional in your field. For instance, the minimum placement requirement to become a qualified social worker is 26 weeks, which means you’ll get a maximum of 26 weeks worth of CPP payments.

Does the CPP apply to international students?

No, the CPP does not apply to international students. It’s only available to domestic students enrolled in a CSP course who meet the eligibility criteria.

My situation is an exceptional circumstance, am I still eligible for the CPP?

You may still be eligible for the CPP in exceptional circumstances. If you don’t meet the outlined eligibility criteria yet there are significant barriers to completing your placements for your course (e.g.: disability, illness or caretaking responsibilities), you may be considered for these payments. Approval for a CPP for exceptional circumstances is subject to the Australian Government Department of Education’s discretion. Each circumstance is determined on a per case basis and supporting documentation is required to substantiate your situation.

Does the CPP count as taxable income?

Yes, the CPP is taxable income. If you receive it, you are responsible for reporting it to the Australian Taxation Office as part of your annual tax return. You may also need to report it to Centrelink or the Department of Veterans' Affairs if you receive income support. Seek independent tax advice if you need more support and information on how this applies to you.

Get the financial support you need during placements

The Commonwealth Prac Payment provides helpful financial relief while you complete your placements. If you don’t qualify for the CPP, there are other financial support options available to you to make your study journey easier, including the 2026 GlobalHealth Education Healthcare Education Scholarship.

Along with social work, nursing and midwifery courses, GlobalHealth Education’s university partners offer postgraduate courses in a range of other healthcare fields. These include psychology, counselling, leadership and management, mental health and public health. Choose a course and enquire to speak with a Student Enrolment Advisor if you want to apply.

If you're considering a postgraduate healthcare course and need guidance on the GlobalHealth Education scholarship, courses eligible for the Commonwealth Prac Payment or information on other financial support schemes, our Educational Consultant can answer your questions and provide tailored advice.