The Albanese government knows that burgeoning HECS debt and costly prac placements have been a heavy burden for many Australians who have chosen to study. That's why, in our recent budget, our government announced a significant reduction in HECS debt, saving three million Australian graduates $3 billion. The Albanese government will also heavily subsidise prac placements for nursing, social work and teaching. This is in recognition of the cost-of-living pressures facing many Australians, particularly young people. It also reflects our government's commitment to build a skilled, capability workforce—a workforce that will fill the skills gap in many under-resourced sectors.
In my electorate, the response to this has been unanimously positive. I've been speaking with community members for many years about the need for a fairer HECS system and more support for our students on prac placements, and I'm pleased that our government has heard this call and is acting to reduce the financial burden. HECS relief will help more than 18,000 graduates and those currently studying who have a HECS debt in my electorate alone. These graduates are our engineers, nurses, teachers, social workers, psychologists and accountants, and, for all those still studying, they are our workers of the future.
Just last week, I visited some of our current students at Deakin University in Waurn Ponds. The staff and students at the educational facility took me on a tour that highlighted the innovative tools now being used to train our future teachers, many of whom will soon be on placement in local schools. I spoke to the students about our reforms, and one student, Cait Reynolds, a third-year Bachelor of Education student, shared her views with me. She highlighted how our government's paid prac placement is going to change the lives of students studying teaching—students who are often working in minimum-wage jobs. She said:
The paid teaching placement investment is something that is going to benefit the teachers of tomorrow …
The paid placement … will remove some pressures felt by every pre-service teacher I know.
This will make me a better teacher.
I thank you for recognising this issue, for reaching out to us and for protecting the future of teaching.
Messages like Cait's are heartwarming and, to be honest, her encouraging message is just one of many I've received. These words demonstrate that our government is acting on paid prac, it's responding to the real-life pressures on students and graduates and it will make a difference.
The payment will provide $319.50 each week to around 68,000 higher education students like Cait and more than 16,000 VET students in Victoria alone who are doing mandatory prac as part of their degree. On top of our investments in paid prac placements and our HECS debt cuts, many of our current students will also benefit from a rise in the minimum wage, which has now increased by $33 per week.
For these students, there's so much more to come. If they're a taxpayer, from 1 July they will also receive a tax cut. If they're a renter, they can access the Rent Assistance program, which has received a much needed boost—the first back-to-back increase in more than 30 years. And on top of that they will also benefit from our $300 energy bill relief package for every single household. All of these reforms are about supporting our students, our graduates and their families. It's about alleviating cost-of-living pressures, removing barriers to study and, importantly, giving them a pathway to a rewarding career. \
In closing, education is the gateway to opportunity, whether it's TAFE or university, an apprenticeship or a degree. Paid prac placements and reduced HECS debt will help ensure this gateway is open to everyone.