Universities will be able to charge a compulsory student services fee of up to $250 from the start of next year.

The legislation, which passed both houses of Federal Parliament on Tuesday, effectively reverses the Howard government's decision to scrap compulsory student union fees.

National Union of Students president Jesse Marshall says the revenue will revive student campus services and create a better university experience.

"It's vital that students are able to access health, counselling, sport and a range of other different services," he said.

"Some universities are going to engage that in a much more proactive manner than others. We will be working with all student organisations and universities to ensure that on each campus, and at each university, the best outcome is reached for students that delivers a range of services."

Mr Marshall says students will be consulted on rebuilding campus services and amenities.

But John Shipp from the Australian Liberal Student Federation says poor students will be hit hard.

"That doesn't even go into consider people who are doing distance education; they aren't actually able to use the services because they won't be on campus," he said.

"I study at the University of Melbourne; the demographic of students who are engaged in student unions or use student union services the most live closer to campus, often from wealthier backgrounds.

"Those from poorer backgrounds and living further away from the CBD often are working their way through university, doing classes at night. They're not going to be able to enjoy those services."

The Government says the fee will pay for essential services on university campuses, but Liberal Senator Brett Mason says it will hurt disadvantaged students.

"This is a tax on students forcing them to pay for services that many will not or cannot use," he said.