The Australian Government is introducing demand-driven Needs-based Funding to ensure all students get the academic and wrap-around supports they need to succeed at university.
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From 1 January 2026, the Government is introducing demand-driven Needs-based Funding to ensure students from low-SES backgrounds, First Nations students and students studying at regional campuses get the supports they need to successfully complete their degrees.
Demand-driven Needs-based Funding
From 1 January 2026, Needs-based Funding will be provided as a core part of funding for teaching and learning in Australia. The new system will provide universities with additional per-student funding contributions over and above core Commonwealth Supported Place (CSP) funding, to better support students from underrepresented backgrounds (including students from low SES backgrounds and First Nations students) to complete their studies. Current evidence shows that these students are less likely than peers to complete their studies.
Needs-based Funding contributions will be directed to those students most in need of additional support, but the wrap-around services providers deliver will be open to all students in need of support.
Universities will use the additional funding to deliver equity interventions and support activities that are proven to deliver positive outcomes. This may include mentoring, peer learning, orientation and first-year transition programs, inclusive teaching practices, and staff training for example. Enhanced transparency will be a key part of helping providers remain accountable for delivering equity outcomes. Flexibility will be another key feature to ensure providers can reflect a university’s local circumstances and to foster innovation in the academic and wrap-around supports provided.
Demand-driven Needs-based Funding will also provide more funding to help address the higher costs that regional higher education providers face to deliver courses in regional Australia. This will ensure that regional communities have access to higher education delivered in regional Australia.
Additional Funding for Students with Disability
From 1 January 2025, the Higher Education Disability Support fund will be increased by approximately $40 million per year (indexed), quadrupling current funding levels. This additional funding will help universities deliver more programs and services that assist students with disability to access, participate and succeed in their university study.
Funding for outreach initiatives
In addition to Needs-based Funding, the Government will continue to deliver funding to universities to support outreach and aspiration activities. A new outreach fund will provide ongoing funding of approximately $44 million per year (indexed) from 2026 to ensure more people from underrepresented backgrounds have the opportunity to go to university.