Teachers who choose to spend time in rural schools will have their student debt wiped in a bid to cover shortages.
The government will clear the HELP debt for those who spend four years teaching in a very remote location at a primary or secondary school, day care centre or preschool.
It is expected to save teachers an average of $35,000.
Eligible teachers will have waived either the debt of their initial teaching degree or whatever debt remains when they start the teaching position, whichever is less.
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It will initially be open to teachers who have been in remote locations since 2019, meaning those already teaching in those areas can get a head start.
Education Minister Jason Clare said the measure is one part of the government's plan to improve educational outcomes for remote and very remote students.
"The program is designed to attract and retain a high-quality teacher workforce, provide critical educational continuity, and support for students in very remote areas," he said.
The places covered by the scheme are those defined as "very remote areas" by the Australian Bureau of Statistics, including large parts of Western Australia, the Northern Territory, South Australia, Queensland and northwest NSW.
Australian Associated Press