The Australian Government has announced a major overhaul of the country’s university system, introducing reforms aimed at making higher education more accessible while better balancing student enrolments across institutions.

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Under the proposed legislation, universities will face enrolment caps under a new “managed growth” funding model, with student numbers to be overseen by the newly established Australian Tertiary Education Commission (ATEC). The government says the changes are designed to end intense competition between universities and ensure more students study closer to their communities.

Education Minister Jason Clare said the reforms are part of a long-term vision to double Australia’s university student population by 2050, with a goal of ensuring 80 per cent of the future workforce holds either a university degree or a TAFE qualification.

The package also includes a A$3.6 billion investment over the next decade to support students from regional, rural and low socio-economic backgrounds through needs-based funding, helping more Australians access and complete university education.

However, critics argue the reforms could reduce student choice, increase competition for places at prestigious universities and fail to address the rising cost of university degrees under the existing Job Ready Graduates scheme.

If passed by Parliament, the new enrolment caps are expected to take effect from January next year, marking one of the biggest changes to Australia’s higher education sector in decades.