Alice River Student Hostel to close and dozens more under review after ABSTUDY policy changes

A student residence for Indigenous students that was at the centre of allegations of fraud, neglect and assault has been closed, and several other residences are under review following a change in funding from the federal government.

An ABC investigation into the Alice River student residence in Barcaldine in outback Queensland has uncovered disturbing allegations that children as young as 13 were abused and assaulted, malnourished, left in the care of other children and forced to work for free in the operator's tourism business.

The facility received about $800,000 in federal grants and was one of 280 dormitories and boarding schools funded by the $170 million ABSTUDY program.

ABSTUDY supports more than 4,000 Indigenous students studying outside their home country in institutions ranging from elite boarding schools to smaller private residences.

The ABC understands that the Federal Government has tightened its ABSTUDY funding policy following a compliance audit of the now-closed Alice River Student Hostel.

The changes mean that all student residences must now sign a standard residence agreement, which requires facilities to demonstrate compliance with child safety regulations, building codes and financial requirements.

Several hostels have lost funding due to the change, while others are being audited.

Steve Florisson, chief executive of Boarding Training Australia, said the policy change was long in the making but closes a legal loophole in a previously largely unregulated industry.

“Accommodation providers can go unnoticed, so we may not even know they exist,” he said.

Allegations of abuse

Indigenous children from remote Queensland communities including Doomadgee, Camooweal and Boulia have attended the Alice River Student Hostel since it opened in 2016.

The students lived in the dormitory and attended the local high school in Barcaldine.

Their parents signed forms authorizing the transfer of thousands of dollars in government funds to the for-profit dorm to pay for their children's room and board.

As part of the investigation, ABC spoke to dozens of former students, workers and their families.

There are several reports of cases where children were regularly left unattended, did not receive regular meals, and in some cases were allegedly abused and neglected.

In other cases, some children were allegedly forced to work for the operator's tourism company for free.

Former employees reported that they worked for minimum wage without benefits and often up to 16 hours a day.

The ABC understands that Queensland Police are investigating the hostel operator for fraud, but no charges have been laid yet.

The former operator of the Alice River student residence did not respond to requests for comment.

Supporters say changes would protect students

Wiradjuri researcher and University of Melbourne associate professor Jessa Rogers said the changes would help protect Indigenous students living away from home.

“This is a necessary step to ensure that ABSTUDY funds are used appropriately and that Indigenous students and their families can trust that the residences will provide them with a safe and culturally appropriate living environment.”

In a statement, Social Services Minister Amanda Rishworth said she was concerned about allegations of mistreatment of First Nations students at the Alice River Student Hostel.

Ms Rishworth said the Department of Social Services had worked with state and federal agencies to strengthen the ABSTUDY policy following the ABC reports.

“We know that most boarding providers are doing the right thing and providing excellent support to First Nations students who are studying away from home,” she said.

“The Government must ensure that ABSTUDY funds paid directly to boarding schools are used for their intended purpose – namely to provide secure access to secondary education and promote equal opportunities in education.”