Commonwealth Grant Scheme (CGS)

Through the Commonwealth Grant Scheme (CGS), the Australian Government subsidises tuition costs for higher education students across a wide range of discipline areas and qualification levels.

On this page:

The Government subsidises the cost of study for around 900,000 students studying in a Commonwealth supported place (CSP), most of whom also defer fees through HECS-HELP. Each year the CGS is worth roughly $7.5 billion.

The Government sets the CGS funding rate in each field of study for Commonwealth supported students. The latest funding cluster rates are available here.

Table A universities must offer CSPs to domestic students commencing an undergraduate course of study. Non-Table A higher education providers may also receive funding for CSPs based on allocations by the Government.

The Australian Universities Accord made a range of recommendations to help build a better and fairer education system. As part of the 2024-25 Budget, the Government is delivering on reforms recommended in the Accord Final Report, including FEE-FREE Uni Ready courses.

The Government is also undertaking targeted implementation consultation on three key structural reforms:

  • a new Managed Growth Funding System for Commonwealth supported places
  • the establishment of an Australian Tertiary Education Commission
  • making Needs-Based Funding a core component of funding for higher education teaching and learning to better support underrepresented students participate and success in higher education.

Accord 2024-2025 Budget Measures

Post-Budget Implementation Consultation Papers

FEE-FREE Uni Ready

The Government is investing $350 million in additional CGS funding over 4 years, commencing on 1 January 2025, to deliver FEE-FREE Uni Ready courses to help more students prepare for university. This investment will provide more students with a high-quality enabling pathway into higher education, focussing on students from underrepresented backgrounds.

FEE-FREE Uni Ready courses replace the Enabling Loading Program.

The Department of Education will determine allocations of additional FEE-FREE Uni Ready funding for 2025. More information will be available soon.

FEE-FREE Uni Ready courses

Current funding arrangements

Table A universities use CGS funding to enrol students in CSPs within a fixed level of funding known as the Maximum Basic Grant Amount (MBGA). These universities decide how CSPs will be distributed between sub-bachelor, bachelor, or postgraduate courses across discipline areas (excluding medicine).

The Government provides additional support for students to access higher education and to expand opportunities in regional Australia.

Funding for designated medical CSPs

Under the Higher Education Support Act 2003, the Government may determine a course of study to be a ‘designated higher education course’. Unlike other higher education courses, the Minister for Education allocates a set number of CSPs to each provider in designated higher education courses.

The Government currently designates CSPs for courses in medicine only. New medical CSPs are allocated to providers per the Government’s Assessment Framework for new medical schools and medical CSPs.

Assessment Framework for new medical schools and medical CSPs

Higher Education Continuity Guarantee

As identified as a priority action in the Australian Universities Accord Interim Report, the Government is guaranteeing CGS payments for universities in 2024 and 2025. Universities will receive the maximum amount of CGS funding, regardless of any change to their enrolments. Any remaining funding must be invested in additional academic and learning support for students with disadvantaged backgrounds.

Higher Education Continuity Guarantee

Nuclear-Powered Submarine Student Pathways

The Australian Government is investing up to $128.5 million over four years to support 4,001 commencing CSPs over 2024 to 2027. These additional places will develop a pipeline of highly skilled STEM graduates who will strengthen Australia’s sovereign capabilities.

Nuclear-Powered Submarine Student Pathways

20,000 additional Commonwealth supported places

The Australian Government is investing up to $485.5 million over four years to support a one-off boost of 20,000 commencing CSPs in 2023 and 2024. The additional places will provide more opportunities in areas of national priority for students from under-represented groups.

20,000 additional Commonwealth supported places

Professional pathways in psychology and social work

Professional pathways are separate Commonwealth Grant Scheme funding rates for psychology and social work courses that directly lead to professional employment. Students enrolled in courses approved as professional pathways will pay less for their course.

Professional Pathways

CGS Funding Agreements

Each higher education provider that receives CGS funding has entered into a funding agreement with the Commonwealth as is required under HESA.

CGS Funding Agreements

Archived Funding Agreements

Useful links

For students: Study Assist

For Providers: Higher Education Administrative Information for Providers

Higher Education Support Act (2003)

Commonwealth Grant Scheme Guidelines

Other Grant Guidelines

Administration of the CGS

The CGS is administered by:

Higher education Program Management
Higher Education Group
Department of Education

Enquiries can be emailed to: CGS@education.gov.au.