New university funding reforms could expand post-school options for Australian students who have traditionally faced barriers to higher education, particularly those from low-income families and regional communities.
Legislation passed by Federal Parliament introduces $3.6 billion in additional university funding over the next decade, supporting an estimated 230,000 additional commencing students. The Universities Accord (Opening the Doors of Opportunity) Bill will then provide an additional $3.6 billion to universities over the next decade.
The changes form part of the government's response to the Australian Universities Accord, which set out reforms to improve participation in tertiary education.
A farier playing field
Australia's university system is already preparing for an increase in enrolments. The government expects approximately 354,000 Australians to commence university degrees in 2027, up from 274,000 in 2022. These figures exclude medicine and demand-driven places.
The new legislation is intended to accommodate further growth while changing how university places are distributed.
Under a Managed Growth Funding system, universities will receive an additional 16,000 Commonwealth Supported Places annually over the next three years. This will increase to 19,000 additional places each year from 2030.
The Australian Government will determine the total number of subsidised places, with the Australian Tertiary Education Commission (ATEC) responsible for allocating them to universities.
However, ATEC will also be able to provide additional places in response to demand from disadvantaged students and those living in regional or remote areas. This effectively removes fixed limits on places for these groups, potentially expanding the university options available to students who might otherwise face limited opportunities.
Support beyond admission
Increasing enrolments is only part of the reform. The legislation also changes how universities are funded to support students once they begin their studies.
Under Needs-based Funding, institutions will receive additional resources according to the number of students they enrol from lower socioeconomic backgrounds, First Nations communities and regional campuses.
The approach draws on Australia's school funding system, which allocates additional resources according to student needs and geographical circumstances.
For regional students, the changes could also mean greater opportunities to study closer to home. Charles Sturt University, which operates campuses across regional New South Wales, could receive between $200 million and $500 million in additional funding over the next decade.
Meanwhile, Central Queensland University could receive up to $260 million over the same period.
The additional funding is intended to help universities accommodate more students while providing support that addresses barriers to completing their qualifications.
Breaking down the barriers
The reforms are tied to a longer-term national goal of increasing the proportion of Australians with tertiary qualifications. Under the Universities Accord, the government is targeting a workforce in which 80% of people hold a university degree or TAFE qualification by 2050.
Education Minister Jason Clare said reaching that target would require widening participation among students who have traditionally been underrepresented in higher education.
“The only way to do that is if we break down the barriers that stop so many young people from getting to university. Talent is everywhere. It’s opportunity that’s not,” Clare said.
For students approaching the end of secondary school, the reforms could gradually expand the range of university pathways available, particularly in communities where access to higher education remains limited.