Universities will have to demonstrate success across four new performance measures to unlock funding increases from 2020 as the government lifts a two-year freeze on support for undergraduate places.

Under a new funding scheme to be introduced by the Morrison government, universities will be measured for how well they perform in graduate employment outcomes, student success, student experience and enrolment of Indigenous, disadvantaged and rural students.

Education Minister Dan Tehan says higher education in Australia is “world class” but needs to be “stronger, more sustainable and fit for purpose.”