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Achieving this requires more people from underrepresented backgrounds to attend and graduate university.
The Government has established new funding arrangements for higher education in Australia to better support students from underrepresented backgrounds.
Students from low socio-economic backgrounds and regional students
From 1 January 2026, Needs-based Funding was introduced as a core part of funding for higher education in Australia to better support First Nations students, students from low socio-economic status backgrounds and regional areas.
In its first year, Needs-based Funding is expected to support around 140,000 students from low socio-economic status and First Nations backgrounds, and 150,000 students at regional campuses. Institutions will receive set contributions per eligible student, with the ability to attract both equity and regional components for the same student. This funding aims to improve access, retention, and completion outcomes, while helping offset the higher costs of regional delivery.
From 2026, Outreach Funding will complement Needs-based Funding by supporting initiatives that engage people from underrepresented backgrounds and build aspiration for tertiary education. Outreach activities will be collaborative, student-centric, and tailored to break down barriers to participation.
Students with disability
People with disability are the fastest growing identified student cohort in higher education in Australia. The number of domestic commencing students with disability increased from 39,829 in 2021 to 47,458 in 2024, a 19.2% increase over 4 years (an increase of 11.4% between 2023 and 2024).
However, nationally, higher education institutions are less likely to enrol people with disability. Students with disability have poorer graduate outcomes, and report poorer student experiences and lower student satisfaction than the general population.
ATEC is working with disability and higher education sector stakeholders to build a joined-up, national approach to higher education disability support. These activities are part of its remit to shape an inclusive higher education system—a disability-affirming sector with culture and governance that actively support students, improve experiences and graduate outcomes, and open pathways to opportunity for people with disability.
Commonwealth funding for universities to support students with disability is provided through the Disability Support Program (DSP), administered by the Department of Education.
The Disability Support Program aims to build institutional and sector capacity and capability to support students with disability and reflect stakeholder feedback on delivering programs and services that empower students with disability to access, participate and succeed in their studies.
FEE-FREE Uni Ready places
From 1 January 2025, the Australian Government made an initial investment of $350 million in additional Commonwealth Grant Scheme funding over 4 years to deliver fully funded FEE-FREE Uni Ready (FFUR) courses to help more students prepare for university. An additional investment of more than $1 billion to deliver fully funded FEE-FREE Uni Ready (FFUR) courses to help more students prepare for university. FFUR courses are enabling and pathway programs, often used by students from under-represented backgrounds including First Nations, low socio-economic status, and regional/remote cohorts. They are fully Commonwealth funded with FFUR students paying not student contribution.
The FFUR measure will likely result in around 30,000 students studying in FFUR courses each year by 2030, an increase of 40% in student numbers (based on 2022 actual delivery) and doubling the number of students by 2040.
This investment will provide more opportunities for students from underrepresented backgrounds to get the skills they need to take up tertiary study.