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From 2027, the Australian Tertiary Education Commission (ATECThe Australian Tertiary Education Commission, which allocates funded places.) must give each public university a yearly allocation of fully funded domestic student places. The minister sets the total national pool through a legislative instrument and may increase it on the minister's own initiative or at ATECThe Australian Tertiary Education Commission, which allocates funded places.'s request. Each university's allocation must equal its protected core places plus any extra growth places, and the national pool cannot be smaller than the previous pool. When allocating growth, ATECThe Australian Tertiary Education Commission, which allocates funded places. must consider ministerial priorities, student demand, university performance and goals, whether existing students can continue to be supported, and the health of the university sector.
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ATECThe Australian Tertiary Education Commission, which allocates funded places.'s managed-growth allocations do not cover demand-driven or medical courses; the minister may allocate those places separately. Demand-driven courses include eligible bachelor and honours courses taken by First Nations students, certain medical courses taken by First Nations students, and any further courses the minister specifies. If the minister does not set a demand-driven allocation, universities are funded for every supported place they provide in those courses.
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Public universities will no longer need a funding agreement to qualify for these grants. Other approved higher education providers can receive grants only for priority types of courses named in government guidelines, replacing the existing national-priorities approach.
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Universities can enrol slightly above their allocation without losing funding. The buffer is the smaller of 105% of their allocation or their allocation plus a number set in government guidelines. Beyond the permitted limit, their grant can be reduced by an amount based on student contributions collected for the excess places. Special limits help universities that enter the system already over-enrolled, while under-enrolled universities can access a temporary funding floor until the end of 2031.
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Universities will receive extra, student-linked funding from 2027 for eligible First Nations students, students from low socioeconomic backgrounds and any further groups named in government guidelines. The 2026 base amount is $1,535 per eligible equity student and will be indexed from 2027. New students attract a full per-student amount regardless of study load; funding for continuing students is adjusted for how much they study.
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Universities will also receive extra funding for eligible students studying through regional or remote campuses, to support those students and help meet higher campus costs. The 2026 base regional amount is $1,398 and will be indexed from 2027. The final amount can vary with factors such as whether study is online or face to face.
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Universities must spend at least their equity funding on helping eligible students enter, take part in and complete higher education, or on helping specified prospective students gain access. Government guidelines can exempt specified equity activities from this rule. Regional funding must be spent on eligible students or priority regional and remote campuses, subject to any exclusions in those guidelines. Both amounts must be spent by the deadline set in the guidelines.
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If the government chooses to manage new international university enrolments, the minister may set an overall number and policy considerations, and ATECThe Australian Tertiary Education Commission, which allocates funded places. must allocate places among registered higher education providers. ATECThe Australian Tertiary Education Commission, which allocates funded places. must consult affected public and other listed universities and publish allocations within 28 days. Before varying an allocation, it generally must give at least 10 business days' notice and consider the provider's response. Notice is not required if the provider waives it, is no longer registered, receives an increase, or the change follows a ministerial pool variation or direction. The bill does not itself impose an automatic international-student cap.
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Universities cannot ask the Administrative Review Tribunal to reconsider the merits of ATECThe Australian Tertiary Education Commission, which allocates funded places.'s domestic or international place allocations, including changes to international allocations. The bill also allows education agencies, the Commonwealth Ombudsman and the university regulator, TEQSA, to share relevant information with ATECThe Australian Tertiary Education Commission, which allocates funded places.. Privacy protections apply, and identifiable information about a National Student Ombudsman complainant can be shared only with that person's consent.