As many members will know, securing access to the Commonwealth Prac Payment for psychology students has been one of AAPi's key advocacy priorities over the past several years.
Together, we have taken this issue directly to Parliament House, where psychology students courageously shared their experiences of placement poverty with Members of Parliament. We have met with Ministers, Shadow Ministers and crossbench MPs, worked alongside allied health organisations, advocated directly to government, and asked our members and the broader community to support parliamentary petitions calling for psychology students to be included in the scheme.
Today, we are pleased to welcome the Australian Government's announcement that the Commonwealth Prac Payment will be expanded to include psychology students undertaking professional placements.
The expansion is expected to commence from 1 July 2027. Under the current arrangements, eligible students receive $338.60 per week during their mandatory clinical and professional placement periods. The payment is means tested, benchmarked to the single Austudy rate and indexed annually. While it will not remove all of the financial pressures associated with placement, it represents important recognition of the significant burden faced by students required to undertake extensive unpaid placements.
The initial Government announcement referred to "clinical psychology", creating understandable concern that eligibility might be limited to students enrolled in a Master of Clinical Psychology.
AAPi immediately sought clarification from the Government and has now been advised that:
Consistent with the existing settings for the Commonwealth Prac Payment program; for Psychology, the intent is that CPP-eligible courses are those that lead to professional entry-to-practice as a psychologist. This includes Professional Pathway Psychology courses (as defined under the Commonwealth Grant Scheme) at Bachelor and Master’s level as part of the approved registration pathway (including with APAC). This includes the Masters of Professional Psychology and all 9 Areas of Practice Endorsement (AoPE).
We will be working with the higher education sector and professional bodies in the coming weeks to ensure shared detailed program understanding and ensure consistent messaging, noting we have used Clinical Psychology as a education portfolio term and not in its industry/professional sense.
As discussed, we would like to work with you and other professional bodies on wording for our Factsheet to ensure consistent messaging.
AAPi has spent considerable time providing education regarding this topic.
Funded paid placements are a significant step forward for psychology students. Every year, students complete hundreds of hours of compulsory placement while balancing study, employment and the rising cost of living. For many, placement requirements substantially reduce their capacity to earn an income, creating financial hardship and, in some cases, threatening their ability to complete their training.
AAPi has long argued that these financial barriers affect not only students, but also Australia's future psychology workforce. Supporting students during their placements helps improve access to training and strengthens the pipeline of psychologists entering the profession.
This outcome reflects years of coordinated advocacy by AAPi, the Australian Allied Health Professions Association (AHPA) and many allied health peak bodies across Australia. We also acknowledge the leadership of Independent Senator David Pocock and Independent MP Dr Helen Haines, who worked tirelessly to keep placement poverty on the national agenda and championed the need for greater support for students undertaking mandatory placements.
We also thank the more than 43,000 Australians who signed the national petition calling for an end to placement poverty, and the many psychology students who shared their personal experiences. Their willingness to speak up helped demonstrate why reform was urgently needed.
While this announcement is a major achievement, AAPi will continue working with the Australian Government to clarify the detailed eligibility criteria, implementation timeframes and application process. We will also continue advocating to ensure the final program guidelines fully reflect the Government's stated intention to include professional psychology pathway courses leading to registration.
This announcement is a significant investment in the future psychology workforce. By reducing financial barriers to completing professional training, it will help create a more accessible, equitable and diverse profession while supporting more Australians to pursue a career in psychology.
Further information is available here.