Nursing, midwifery and allied health students in Canberra will receive up to $3000 a year over a three-year period to help with cost-of-living pressures.
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Students will also be able to receive a support payment of up to $1000 when they are undertaking work placements.
The ACT government payments will be given to students at the University of Canberra and the Australian Catholic University.
There will be eligibility requirements and the program will target domestic students mostly in undergraduate degrees.
The payments are part of a $3 million package, included in the 2023-24 budget, to support students undertaking health degrees in the capital.
The government had been in discussions with the universities about the best ways to distribute the money.
![Health Minister Rachel Stephen-Smith. Picture by Karleen Minney Health Minister Rachel Stephen-Smith. Picture by Karleen Minney](/images/transform/v1/crop/frm/79652520/58a211d2-9b04-46d7-ba57-7264aea72396.jpg/r0_285_5568_3428_w1200_h678_fmax.jpg)
University of Canberra vice-chancellor Paddy Nixon said the money would contribute to the growth of the allied health workforce across the territory.
"This support will translate into students being able to focus on their studies as well as undertake crucial clinical placements, at a time when we know cost-of-living challenges are affecting many in our community," he said.
Australian Catholic University vice-chancellor Zlatko Skrbis said the program would offer a "tangible form of support" and would mean students could focus on their own studies and less on financial pressures.
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The government is hopeful the money will enable Canberra to be competitive when people are choosing where to study their degrees.
The ACT payments come after Victoria and NSW announced payments for healthcare students last year.
The University of Canberra had 100 fewer enrolments in nursing degrees this year.
The ACT government held a round table in April with students where they heard about the need for financial support during placements.
Health Minister Rachel Stephen-Smith said students had expressed concern about "placement poverty" and it was vital students were helped with this.
"This support will help ease some of the financial burden on nursing, midwifery and allied health students so they can focus on their studies and clinical placements," she said.
"We are committed to the wellbeing of our nurses, midwives and allied health professionals and we know that a better supported workforce can deliver even better health services for Canberrans."
Chief Minister Andrew Barr said: "As Canberra grows and we invest more in our community health and hospital infrastructure, we want to ensure we have a workforce that is highly skilled and supported to deliver quality health outcomes for the ACT".
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