Australia's higher education system needs bold change to safeguard its future, says an expert panel tasked with finding solutions to the sector's problems.
Education Minister Jason Clare will present recommendations from an interim review of higher education, known as the Universities Accord, in a speech to the National Press Club on Wednesday.
Mr Clare will talk about the importance of the tertiary sector as more future jobs will require employees with a TAFE qualification or university degree.
This means a bigger number of Australians are expected to enrol in higher education.
"There are about 900,000 Commonwealth-supported students at university today," Mr Clare will say.
"The accord team estimates that could jump to 1.8 million by 2050.
"That's a rough estimate, but it gives you an idea of the skills challenge we face."
The interim report outlines five priority areas to address immediate issues facing the higher education sector aimed at growing student numbers and reducing inequity.
It's expected these will be addressed while larger-scale, systemic problems are solved.
The report calls for greater certainty in university funding by extending the Commonwealth Grant Scheme, guaranteed to December 2023, into 2024.
Extending tertiary education access to rural and regional students and abolishing the 50 per cent pass funding rule, which disproportionately affects students from poorer backgrounds, also feature as priorities.
The rule was introduced as part of the Morrison government's job-ready graduates scheme and requires students to pass at least 50 per cent of total attempted units to remain eligible for fee assistance.
Another recommended priority is to ensure all Indigenous students are eligible for a funded university place by expanding existing arrangements to people living in metropolitan areas.
Guaranteed funding for Indigenous students from regional and remote areas was introduced in 2021.
The panel's report urges bold, long-term and significant change in Australia's higher education system and says complacency cannot be tolerated.
It also outlines the need for state and territory governments, through national cabinet, to commit to improving university governance.
This means focusing on universities as employers, student and staff safety and wellbeing, and ensuring people with expertise in university governance are present on relevant bodies.
"Australian governments should work together to strengthen university governing boards by rebalancing their composition to put greater emphasis on higher education expertise," the report says.
"Governing bodies must as a priority do more to improve student and staff wellbeing and become exemplary employers."
Mr Clare said the report made clear more must be done to encourage people from the regions and poorer families to get a higher education qualification.
"If we don't, we won't have the skills and the economic firepower we need to make Australia everything it can be in the years ahead," he said.
Universities Accord panel chair Mary O'Kane said higher education was essential to the nation's prosperity and welcomed feedback on the interim report.
The Albanese government has agreed to act on the five immediate action areas identified in the interim report.
The panel is also considering more than 70 policy ideas for its final report, due in December.
