Paid Placement and HECS relief is here, but is it enough? | Federal Budget
The Federal government has promised HECS relief for 3 million students and paid placements in last week’s budget, but is it enough? Indiana Hardwick explains.
It’s a much-needed overhaul of the previous indexation system.
HECS debt will no longer rise with inflation, instead increasing with the Consumer Price Index (CPI) or the Wage Price Index (WPI) dependent on which is lower each year. The Federal Government plans to backdate this change, reducing the previous 7.1% indexation to 3.2% and providing credit back to students. People who paid off their debts in anticipation of last year’s increase might now feel quite annoyed. This wipes $3 billion from student HELP, VET Student Loan, Australian Apprenticeship Support Loan and other student support loan accounts.
Newcastle MP Sharon Claydon told a May Day rally it’s only part of the Government’s relief package.
“We announced that we are going to wipe that student debt that people collected from that horrendous indexation that happened last year,” she said.
“That was a big deal. There are 3 million students [who are] going to benefit from the Labor government wiping 3 billion dollars of student debt.”
Sharon Claydon at May Day Rally. Picture: Indiana Hardwick
Paid placements confirmed for *most* students
Alongside HECS relief, it’s also been confirmed that paid placements will be offered to most students. It seems a step in the right direction for campaigners who advocated for them last month. The Commonwealth Prac Payment will provide eligible students studying nursing, midwifery, teaching and social work with $319.50 per week during their clinical and professional placement.
But it equates to roughly $8 an hour.
That’s considerably low against the estimated $487 in weekly expenses for a student living in Sydney, as calculated by the Study Australia Cost of Living Calculator. This does not include mobile costs, personal costs, clothing or entertainment.
And, students studying degrees with an extended placement won’t qualify. This includes physiotherapy students at the University of Newcastle, who need to complete 1000 hours of clinical placement throughout their degree.
Govt responds to Universities Accord
Changes to indexation and paid placements are only a few recommendations in the Australian Universities Accord report released earlier this year. Following the budget, Labor has released its response to the Accord, calling for changes to the current tertiary system.
Beyond relief announced in the budget, the government will mandate funnelling 40% of SSAF (Student Services and Amenities Fee) revenue to student-led organisations.
This includes UNSA and all associated clubs at the University of Newcastle.
Overall, despite the shortfalls of these new measures, immediate student relief during the cost of living crisis remains urgent, and anything is better than nothing.
[…] budget is generally positive for university students, with HECS debt relief, paid placements, and rental relief all being key features to be rolled out over the next financial year. As many […]