Government reviews largest overhaul to higher education in decades

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Universities could see major changes as the federal government reviews the largest overhaul to higher education in decades.

The Australian Universities Accord has handed down its review into the sector, recommending significant change is needed in order to support the future economy.

It found 80 per cent of citizens will need to receive a university or high level technical qualification by 2050 with an additional one million Commonwealth-supported places needed.

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The report also suggested targeting areas of national skills shortages, making HELP payments easier to receive and pay off, more free bridging courses for students that don't initially qualify for university and introducing payments for previously unpaid work placement training in nursing, care and teaching.

"Universities change lives if they are managed well, and universities can change nations," chair of the review Mary O'Kane said.

In order to do that, the federal government will need to make it easier for low- to middle-income students to pursue higher education.

"So that they can fill those jobs, drive the economy, as well as provide a good quality of life for them and their families," Prime Minister Anthony Albanese said.

"I've made it pretty clear that my priority is getting more kids from outer suburbs and the regions, more kids from poor families get a crack at university," Education Minister Jason Clare said. 

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Western Sydney University Chancellor Jennifer Westacott said she believed this would be the "most important contribution to tertiary education for decades".

Opposition education spokeswoman Sarah Henderson said she was concerned the reforms would cost billions of dollars and the government had raised expectations.

RMIT University Vice-Chancellor Alec Cameron agreed, saying the change wouldn't come for free.

This is one of three reviews into Australia's education sector, with the government pushing for longer-term reforms.

"The agreements that we sign this year and the election that we fight next year will determine the future of education," Clare said.

The recommendations are with the government, with any changes to be implemented through its federal budget in May.