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The biggest emphasis will be on the proportion of graduates who get a job after graduation.

The scheme will also include student success and retention rates, student satisfaction with their university experience, and the portion of students from equity backgrounds.

������˾�� 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.

“Australians can be very proud of the quality and performance of our world-class university system, which produces career ready graduates, with strong student satisfaction, equity and success.”

“We know prevailing economic conditions are the strongest determinant of jobs across the economy, and job prospects for graduates follow the curve of that trajectory very closely.”

“We appreciate the Government’s understanding of that relationship and the need for a strong economy as the single most powerful factor that shapes whether our graduates can find work.”

Ms Jackson said the sector would liaise closely with Government as the scheme rolls out.