The National Union of Students still remains "cynical" about the government's performance-based funding scheme for the university sector.
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NUS president Desiree Cai welcomed moves to prioritise student success and outcomes but said the $80 million worth of funding for the scheme was not enough.
"It is really quite moderate when you consider just two years ago in 2017 there was a $2.2 billion funding freeze," Ms Cai said.
"Increasing funding for universities is a slight step in the right direction but there is way more that needs to be done.
"The [education] minister [Dan Tehan] outlined graduate outcomes as one of the key performance based measures. That is well and good but if most students only get very casualised or insecure work, that's a concern."
NUS stressed a holistic approach by the sector and government was necessary to improve student and graduate outcomes.
"Universities must have funding restored to improve vital services on campus for students like counselling, academic support and career services," Ms Cai said.
This view was backed by Wollongong Undergraduate Student Association (WUSA) general representative Darcy Turner.
The University of Wollongong student activist said the finalised funding model was a further attack on tertiary education.
Turner added it was "appalling" that UOW vice-chancellor Paul Wellings had worked so closely with the Liberals to achieve this.
Professor Wellings chaired the expert panel of five vice-chancellors who devised the model which will require universities to demonstrate success across four new performance measures to unlock funding increases from 2020.
"The funding plan lays the basis for future cuts to the higher education sector when universities fail or fall short of these performance indicators," Turner said.
"The University of Wollongong administration has shown their true colours and their commitment to the further corporatisation of education.
"This push for education funding to be leashed to performance outcomes is just the latest in a series of attacks against students and staff.
"As a fighter for free education I oppose this."
Education Minister Dan Tehan said importantly the model was not punitive.
"Where a university does not meet its performance target it will be supported to improve their performance," he said.
Mr Tehan added reviews would be held in 2020 and 2023 to ensure the model is "fit-for-purpose".
Universities Australia chief executive Catriona Jackson said universities had worked with Government to negotiate the complex scheme.
"We thank the Minister for his consistent reaffirmation that the intent of the scheme is not to be punitive - but rather seeks to support all universities to perform highly," she said.
Agron Latifi
Wollongong born and bred. I love reporting about the Illawarra region and have been doing it for more than 20 years. I've moved into sport recently after covering the education round for the last five plus years for the Illawarra Mercury. It's been a great pleasure.
Wollongong born and bred. I love reporting about the Illawarra region and have been doing it for more than 20 years. I've moved into sport recently after covering the education round for the last five plus years for the Illawarra Mercury. It's been a great pleasure.
