The federal government are estimating the rate of Indigenous students will double in the next decade as a result of education reform.
According to the productivity commission, almost 50 per cent of people under 25 are enrolled in a bachelor's degree in Australia.
Only about seven per cent of Indigenous people in their 20s and 30s hold a bachelor's degree.
The Interim Report of the Universities Accord, released on Wednesday, features over 70 recommendations, which include measures to increase rates of Indigenous University enrolments.
The report recommends guaranteed funding for Indigenous students in regional areas and the extension for demand-driven funding for all Indigenous students who are eligible for the course they apply for.
"At the moment this only applies to Indigenous students who live in regional Australia. It applies if you live in Townsville, but not Logan. If you live in Armidale, but not Mount Druitt. If you live in Port Headland, but not Perth," Education Minister Jason Clare at a National Press Club appearance on Wednesday.
"Now it will apply to all. Doing this could double the number of Indigenous students at university in a decade.
"I don’t want us to forever be a country where your chances in life hinge on who your parents are, where you live or the colour of your skin."
The minister also announced three "big reviews" into the education system.
The first report will investigate the early childhood system, the second school education, and the last will be the Universities Accord report, which Clare described as a "big broad review of our higher education system".
Abolition of the 50 per cent pass funding rule
The report also recommended the abolition of the 50 per cent pass funding rule which was introduced as part of the Morrison Government's job-ready graduates scheme.
Students in the scheme must retain at least 50 per cent of total attempted units to get fee assistance. The rule has forced an estimated 13,000 students to quit their studies.
"More than 13,000 students at 27 universities have already been hit by this. Instead of forcing them to quit we should be helping them to pass," said Clare.
The report also highlighted the need for qualified university governance on relevant bodies.
"Australian governments should work together to strengthen university governing boards by rebalancing their composition to put greater emphasis on higher education expertise," the report reads.
Clare also spoke on the importance of the tertiary sector as more future jobs will require employees with a TAFE qualification or university degree.
This means a bigger number of Australians are expected to enrol in higher education.
"There are about 900,000 Commonwealth-supported students at university today," said Clare.
"The accord team estimates that could jump to 1.8 million by 2050.
"That's a rough estimate, but it gives you an idea of the skills challenge we face."
Universities Accord panel chair Mary O'Kane said higher education was essential to the nation's prosperity and welcomed feedback on the interim report.
The Albanese government has agreed to act on the five immediate action areas identified in the interim report.
The panel is also considering more than 70 policy ideas for its final report, due in December.
- With AAP
