“Australia needs more university graduates to remain strong, safe and prosperous in a fast-changing strategic environment,” Universities Australia Chief Executive Catriona Jackson said.

“Abolishing the punitive 50 per cent pass rule introduced under the Job-ready Graduates package and delivering demand-driven funding for all Indigenous students, regardless of where they live, will certainly help with this.

“Universities have long advocated for these initiatives, and we are pleased the government has listened.

“We will continue to engage with government on the non-legislative components of the bill.

“Universities are concerned the guidelines underpinning the government’s support for students policy will create additional regulatory burden without driving better outcomes for students.

“We will continue to engage closely with government to work toward an outcome that is good for students and fair on universities.”