Profit-making colleges would receive taxpayer funding to teach students unproven alternative remedies such as homeopathy, flower essence therapy and iridology under the Abbott government's proposed higher education reforms.

The move comes as the government considers stripping the private health insurance rebate from any policies covering natural therapies not supported by evidence.

Police believe there may be more sexual assault victims yet to come forward.

As well as deregulating university fees and cutting university funding, the government's higher education reforms would extend funding to private colleges, TAFEs and sub-bachelor degree programs at a cost of $820 million over three years.

Accredited private colleges would become eligible for grants of $6323 a year for each student enrolled in courses such as homeopathy, naturopathy and mind body medicine. This is more than public universities would receive per student studying law, economics, languages or the humanities under the new funding structure.