The $485.5m investment will require higher education providers to allocate places to people from low socio-economic backgrounds, in rural and remote areas, First Nations people, and people with disability.
“Where you live, how much your parents earn, whether you are Indigenous or not is still a major factor in whether you are a student or a graduate of an Australian university,” Mr Clare said.
“I don’t want us to be a country where your chances in life depend on your postcode, your parents or the colour of your skin.
“Our Universities Accord will also consider ways to boost access to university for all Australians,” he said.
In a statement, the treasurer Jim Chalmers confirmed the policy aims to make the economy more productive and deliver a greater number of skilled workers.
“This policy will also ensure more Australians have the skills they need to get sustainable, well-paid jobs into the future,” the Treasurer said.
"Australia needs more skilled workers. How we prepare Australians for the jobs our economy needs will be a focus at the Jobs and Skills Summit next month.
"Investing in more university places in industries where we need skilled workers will help to make our economy more productive. This policy will also ensure more Australians have the skills they need to get sustainable, well-paid jobs into the future," the Treasurer said.
Providers will competitively bid for allocations of places, with applications opening this month for both 2023 and 2024.
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