Excluding medical students from prac payments is a mistake

In July, during the Federal Labor Party Conference in Adelaide, the Prime Minister announced that his government was expanding the Commonwealth Prac Payment scheme to 10 allied health disciplines. Medical students are excluded.

The AMA, at both the national and state levels, believes this is a mistake.

Medical students undertake between 2,000 and 4,000 hours of mandatory unpaid clinical training, and AMA SA is concerned the Federal Government's decision to exclude them from the Commonwealth Prac Payment scheme risks creating a barrier for students without financial support.

South Australia cannot afford a system where cost becomes a filter on who can study to become a doctor. Supporting medical students from all backgrounds is essential to ensuring the profession reflects the diversity of the communities it serves.

AMA SA asked representatives from the Flinders Medical Students' Society (FMSS) and Adelaide Medical Students' Society (AMSS) to share their reaction.

AMSS statement 

The AMSS welcomes the expansion of the Commonwealth Prac Payment (CPP) to support students across 10 allied health disciplines but is deeply disappointed that medical students remain excluded from this expansion.

This is despite extensive advocacy by AMSA and state medical student councils highlighting the significant financial barriers associated with pursuing medical school in Australia.

Medical students complete up to 4,000 hours of mandatory full-time clinical placement throughout their degree, which is among the highest placement requirements of any university program. During these placements, many students have limited capacity to undertake regular paid employment and incur substantial out-of-pocket costs simply to meet the requirements of their education.

The opportunity cost of these placements is considerable, with many students working evenings, weekends and overnight shifts around full-time clinical commitments to make ends meet.

Students are often required to relocate for mandatory rural medical placements and must sacrifice regular paid employment. Exclusion from the CPP acts as a barrier to such placements and can disincentivise students from pursuing learning opportunities in regions facing severe workforce shortages and in need of future doctors with rural experience.

As the Australian Medical Students' Association (AMSA) has stated, 'the fair go stops at the doors of medical school'.

Excluding medical students from the CPP disproportionately affects those from low-income, rural and regional backgrounds, creating financial barriers that discourage capable students from entering or completing medical training. These are the very students who are most likely to return to underserved communities, helping address workforce shortages and improve equitable healthcare access across Australia.

The AMSS strongly urges the Australian Government to reconsider this decision and extend the CPP to medical students. If the purpose of a means-tested CPP is to reduce financial barriers to mandatory placements and improve access to essential health professions for the people who require it most, then there is no principled basis for excluding future doctors.

Kash Avadhani, AMSS President
Kyan Reimers, Senior AMSA Representative for AMSS

FMSS statement 

This is a bad thing for medicine and, importantly, an awful thing for the communities that most need medical care.

The 'payment for prac' program is not students being paid for attending their placements. It is students being paid so that they can attend their placements.

It is not something all students receive, either. It is mean- tested, to the same standard as other Centrelink payments, meaning only students who actually need the support receive it.

The Prime Minister has explained the exclusion of medical students as a workforce issue. They need more people to apply for nursing and allied health, but there is no shortage of people who want to be doctors.

And he is somewhat right. There is no shortage of people like me. People from private schools wearing their RMs who have worked incredibly hard to get into medicine, but have also had a lot of support to get them there. For many students, mum and/or dad is a doctor, but if not, a lawyer, accountant or some other professional.

We know this from the numbers. In the 2025 Medical Deans Student Statistics Report, 71.8% of medical students directly received money from family during their studies. We know this from many cohort studies, where roughly 70% of students come from households in the top 25% of income.

What this means is that there is a shortage of people who can relate to so many of the patients we see. People from communities where health literacy is lower, where chronic health conditions are more prevalent and where poorer access to healthcare is the driver of poorer outcomes.

This is where Education Minister Jason Clare and the Albanese Government have made a mistake. This mistake is going to be paid for by students without enough privilege to support them through 2,000 to 4,000 hours of unpaid full-time clinical placement, and by the communities they come from.

Mistakes happen, but this is a big one.

The Prime Minister needs to fix it.

Sam Diprose, FMSS President