Universities Australia has welcomed the federal government's plan to allocate 20,000 new tertiary education places to upskill the nation's workforce.
The government announced on Monday it would fund the extra university, fee-free TAFE and vocational education places to ensure key jobs such as teachers and nurses are filled.
The positions will be given to under-represented university students including regional, Indigenous and lower socio-economic Australians.
Skills and Training Minister Brendan O'Connor said it showed the government was addressing the skills shortage facing the nation.
"These fee-free training places will provide Australians opportunities to get trained for the jobs in demand now and in the future and deliver to business the skilled workers they need," he said.
"After a decade of inaction by the previous government, Labor is wasting no time to address the skills shortages the country faces."
The 20,000 places will be split between education (4036 places), nursing (2600), health professions (2740), IT (2275) and engineering (1738).
UA chief executive Catriona Jackson congratulated the government for following its election pledge with decisive action.
"Universities strongly support the government's intent to provide more students with the transformative experience of a university education while also addressing our country's immediate skills needs," she said.
"A university education is a mighty cause for good, setting people up for a fulfilling career and opening up opportunities they otherwise wouldn't have ... these additional places will ensure more Australians benefit from a world-class education."
Education Minister Jason Clare is expected to soon announce details of an "accord" process to harness the full potential of universities, which were devastated by the COVID-19 pandemic.
Over the peak of the pandemic, the value of education as an export fell from almost $41 billion in 2019 to $22 billion last year, contributing to the sector's first decline in operating revenue since 2008.
Ms Jackson said the universities accord "presents the most significant opportunity for policy reform in higher education in Australia in almost two decades".
As part of the talks, universities plan to lobby for greater investment in research and development, a new funding model, and using the visa system to allow more international students to fill skills gaps.
Mr Clare is expected to unveil the panel to lead the process and terms of reference in November.
