Thousands more Australian university students undertaking compulsory clinical placements will become eligible for weekly government financial support under a major expansion of the Commonwealth Prac Payment scheme, with Prime Minister Anthony Albanese announcing the measure as a centrepiece of Labor’s 50th National Conference in Adelaide.

The expansion is one of several cost-of-living initiatives unveiled by the Albanese Government as it seeks to ease financial pressures on students while addressing workforce shortages across Australia’s health system.

Under the policy, students enrolled in an additional 10 allied health disciplines will be able to receive $338.60 per week while completing mandatory practical placements from July 2027. The payment is benchmarked to the single Austudy rate and is intended to help students who are often required to complete full-time unpaid placements as part of their qualifications.

The newly eligible professions include physiotherapy, clinical psychology, speech pathology, paramedicine, audiology, pharmacy, podiatry, occupational therapy, rehabilitation therapies and medical radiation practice, substantially expanding a scheme that previously supported students in nursing, midwifery, teaching and social work.

Announcing the policy, Mr Albanese said the government wanted to reduce the financial barriers faced by students entering critical frontline professions.

“We are investing in the people Australia will rely on in the years ahead,” the Prime Minister told delegates during his keynote address, arguing that practical support was essential to strengthening Medicare and ensuring communities had access to qualified health professionals.

The Commonwealth Prac Payment was originally introduced to help students who are unable to maintain regular employment while completing compulsory professional placements.

Many university health degrees require students to undertake hundreds or even thousands of hours of supervised clinical training before graduation. During these periods, students often work full-time without pay while still covering rent, transport, food and other living expenses.

The financial strain has become widely known as “placement poverty”, with universities and professional organisations warning that some students have delayed or abandoned their studies because they could not afford to complete mandatory placements.

The latest expansion represents a significant increase in government support.

The Albanese Government said approximately $745 million would be invested to broaden the program, helping tens of thousands of additional students complete their qualifications while reducing cost-of-living pressures.

Health sector organisations have generally welcomed the announcement, arguing that financial assistance during placements should improve student retention and encourage more graduates to enter professions experiencing persistent workforce shortages.

Australia’s healthcare system continues to face growing demand driven by an ageing population, increasing rates of chronic illness and expanding mental health services.

Many allied health professions—including physiotherapy, psychology, speech pathology and occupational therapy—have reported recruitment difficulties, particularly in regional and rural communities where access to specialised healthcare remains limited.

By reducing financial barriers to graduation, the government hopes more students will complete their courses and enter the workforce sooner.

The announcement formed part of Mr Albanese’s broader address to Labor delegates, in which he acknowledged many Australians continue to experience financial pressures despite signs that inflation has moderated from its earlier peak.

He argued that governments must respond to community concerns with practical policies rather than political slogans.

“A list of problems only counts for something if it comes with solutions,” he said, contrasting Labor’s approach with that of its political opponents.

The Prime Minister also used the speech to criticise Pauline Hanson and One Nation, saying populist parties often focused on grievances without offering workable policy alternatives.

His comments reflected Labor’s increasing focus on countering the rise in support for One Nation, which has gained momentum among some voters frustrated by ongoing cost-of-living pressures.

Treasurer Jim Chalmers acknowledged ahead of the conference that the government could not afford to dismiss shifting voter sentiment.

Although Labor holds a comfortable majority in the House of Representatives, Dr Chalmers said Australia’s political environment remained volatile.

“Politics is volatile,” he told ABC Radio National.

He said many Australians remained anxious about economic uncertainty, rising household costs and broader global challenges, factors that could encourage voters to consider alternative political parties.

Alongside education reform, delegates at Labor’s national conference are debating a wide range of policy issues including housing affordability, workplace relations, artificial intelligence, taxation, energy security and Australia’s transition to lower-emissions energy.

Questions surrounding resource taxation also featured prominently during the opening day.

Dr Chalmers pointed to reforms already made to the Petroleum Resource Rent Tax, arguing the government had taken steps to ensure Australia’s natural resources delivered a fairer return while maintaining investment confidence.

At the same time, Mr Albanese sought to dampen speculation that the government was preparing to introduce a new gas export tax.

Speaking before the conference opened, he said ensuring Australia’s fuel security remained the government’s immediate priority.

“Our priority has been fuel security. We have managed to do that,” the Prime Minister said.

The expansion of Commonwealth Prac Payments builds on reforms introduced over the past two years aimed at reducing financial pressures on students.

Previous initiatives have included changes to student debt indexation, reductions in HELP debt for eligible graduates and broader reforms arising from the Universities Accord process designed to improve access to higher education.

Education experts have long argued that unpaid placements disproportionately affect students from lower-income backgrounds, mature-age students and those living away from family support.

Unlike many forms of paid employment, compulsory placements often prevent students from maintaining part-time jobs because they require full-time attendance over extended periods.

Professional associations have warned that the financial burden risks limiting diversity within the healthcare workforce by discouraging capable students who cannot afford prolonged periods without income.

The government says expanding the payment scheme is intended to address that inequity while helping ensure Australia can train enough healthcare professionals to meet growing demand over coming decades.

For Labor, the announcement also reinforces a broader political message centred on easing cost-of-living pressures through targeted assistance rather than across-the-board payments.

As delegates continue debating the party’s policy platform in Adelaide, the Commonwealth Prac Payment expansion stands out as one of the conference’s most tangible commitments—combining immediate financial support for students with a longer-term strategy to strengthen Australia’s future health workforce.