Australia passes bill to expand university access and support disadvantaged students

Australia’s Parliament has passed legislation to expand access to university education, with the government projecting that an additional 230,000 students will begin higher education over the next decade.

The Universities Accord (Opening the Doors of Opportunity) Bill introduces two major changes to the country’s university funding system: Managed Growth Funding to increase the number of available places and needs-based funding to provide additional support to institutions enrolling students from disadvantaged backgrounds and regional communities.

According to Education Minister Jason Clare, the reforms will direct an additional A$3.6 billion to universities over the next decade. The legislation is the seventh measure passed by the Albanese government to implement recommendations from the Universities Accord.

“The number of Australians starting a university degree has jumped almost 30 per cent since we came to government. The Universities Accord set a target that by 2050, 80 per cent of the workforce will have a TAFE qualification or a university degree," the minister said.

“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. These reforms will mean more young people from poor families and from the regions and the bush get a crack at university", he added.

University places set to increase

The government plans to expand the number of university places available to students through a system that links funding to projected demand and national skills requirements.

Over the next three years, the reforms are expected to create an additional 16,000 student places annually. From 2030, the number of additional places is scheduled to rise to 19,000 each year.

The government expects these changes to support 230,000 additional commencing students over the next decade.

Under the new arrangement, the government will determine the overall number of Commonwealth Supported Places (CSPs), while the Australian Tertiary Education Commission (ATEC) will allocate places to universities. CSPs are subsidised by the Australian government, with students paying the remaining portion of their tuition costs.

The commission will also be able to allocate additional places where it identifies a need to improve access for students from disadvantaged backgrounds and regional and remote communities.

The legislation effectively removes the usual limits on places for these student groups, according to the government’s announcement.

Needs-based funding to support disadvantaged students

The second major reform introduces needs-based funding for universities, modelled on the principle of providing additional resources to schools according to the circumstances of their students and communities.

Universities will receive more funding as they enrol more students from lower socioeconomic backgrounds, First Nations communities and regional campuses.

The government says the approach is intended to help students who face financial, geographical or other barriers to higher education. It is also designed to strengthen regional universities and make it easier for students to study closer to home.

The funding is expected to support institutions serving communities where access to higher education can be limited by distance, household income and the availability of local study options.

Regional universities set to receive additional funding

The government has highlighted potential funding increases for regional universities under the reforms.

Charles Sturt University, which operates campuses across regional New South Wales, including Wagga Wagga, Orange, Bathurst, Dubbo and Port Macquarie, could receive between A$200 million and A$500 million in additional funding over the next decade.

Central Queensland University could receive up to A$260 million over the same period. Its campuses serve communities including Rockhampton, Mackay, Bundaberg, Cairns, Gladstone and Emerald.

The government says the additional investment could help regional institutions enrol more students, expand educational opportunities and contribute to local workforce development.

These figures are government projections rather than confirmed funding allocations. The amounts received by individual universities will depend on the implementation of the funding arrangements.

Government targets wider access to higher education

The reforms follow an increase in the number of Australians beginning university degrees. The government said annual commencements, excluding medicine and demand-driven places, rose from 274,000 in 2022 to an expected 354,000 next year, representing growth of about 30 per cent.

The Universities Accord established a national target for 80 per cent of Australia’s workforce to hold a tertiary qualification, such as a TAFE qualification or university degree, by 2050.

The government argues that expanding university places and directing additional resources towards disadvantaged and regional students will help Australia meet its future skills needs.

The legislation is intended to combine growth in university enrolments with funding arrangements that give institutions stronger incentives to improve access for students who have traditionally faced greater barriers to higher education.