Voluntary Bonding Scheme

How will it work?

The aim of the scheme is to provide graduates with incentive payments intended to help repay student loans in return for working in hard-to-staff areas for up to five years. Graduates who do not have student loans can opt to receive cash payments.

The annual bonding credits for each profession are:

	Annual credit (after tax)
Doctors	$10,000 net
Midwives	$3,500 net
Nurses	$2,833 net

Amounts correct as per 22 February 2009.

Graduates will be recognised for every full year worked, but must stay on the scheme for at least three years before they receive their first lump-sum payment. In the fourth and fifth year on the scheme, graduates will be eligible for annual payments.

For example, the payment schedule for 2009 graduates will be:

	Doctor	Midwife	Nurse
2012	$30,000	$10,500	$8,499
2013	$10,000	$3,500	$2,833
2014	$10,000	$3,500	$2,833
Total payment	$50,000	$17,500	$14,165

Amounts correct as per 22 February 2009 have been calculated using data from 2007 average loan balances.

Prior to submitting a claim for payment, graduates will need to sign a declaration to confirm that they have:

worked in a hard-to-staff community and/or specialty
met the terms governing absences or pauses
worked in a role that is at least 0.6 of a full time equivalent.

Website feedback
We welcome your feedback on this page.

Page last updated: 23 February 2009