Labor will put higher education at the centre of its response to this year's budget by announcing it will oppose all the government's major university changes, including the proposed rise in fees and slashing of the HECS repayment threshold.

The decision will force the government to negotiate with the 12-person cross-bench to pass its higher education changes into law. The Greens also oppose the government's package, which is designed to save $2.8 billion over the next four years.

The government will introduce its higher education legislation into Parliament on Thursday, alongside its new school funding model.

Labor will use the higher education changes, which would see student fees increase by 7.5 per cent by 2021, to argue against the government's claims that "fairness" is one of the budget's key themes.