Victoria's universities have backed the Rudd government's growth agenda with a 13.5 per cent increase in first-round offers, offsetting a 9 per cent rise in applications. But the state government said too many students were still missing out, with 11,600 applicants now sweating on later-round offers.

Universities Australia has warned this year's big expansion of places is unsustainable and the sector will face a challenge to maintain quality and expand unless backed by additional teaching and infrastructure money.