The university sector faces an infrastructure funding gap of $10 billion-$15bn to meet the Rudd government's participation targets in the next 15 years, and there are now calls for an urgent re-examination of how the targets will be properly funded.
Queensland's Gold Coast faces a critical shortage of university places that threatens to deprive the region's youth population of graduate skills they will need in a maturing economy.
Education Minister Julia Gillard has warned universities that she will be looking for results as the government ties new performance funding to teaching outcomes from 2012.
Students from poor backgrounds are less likely to attend the nation's prestige universities, but those who do are likelier to finish their degrees, according to a report by the Group of Eight.