A DESIRE not to "poison" his own children with wealth has led a businessman to pour a whopping $50 million into the education of strangers in the largest donation ever made to Australian university students.

Twenty-five undergraduates will score scholarships worth up to $100,000 each over the next five years - creating 125 scholarships all up over that time - thanks to a donation to Canberra's Australian National University from one of the country's most successful financial entrepreneurs.

The scholarships are set to run in perpetuity over the next 20 years.

Canberra-born Graham Tuckwell studied at ANU before his global successes led him to set up ETF Securities Limited, which issues exchange traded products and has about $30 billion in assets.

He said he and his wife Louise wanted to change lives and did not think it was sensible for parents to give vast amounts of money to their own children.

"Lots of money is poisonous to have," he said.

Mr Tuckwell said he hoped the gesture would inspire other wealthy Australians to consider philanthropy, rather than just passing their fortunes down.

media_camera Australian National University Economics and Law Alumnus Graham Tuckwell who is giving a philanthropic gift of $50million for undergraduate scholarships. Picture: Ray Strange

"Generally speaking, if you look at the people in Australia that have got huge amounts of wealth, without naming any, they generally have not put the majority of their wealth behind strong philanthropic causes," he said.

"And unfortunately in some cases they pass the wealth down to later generations who have behaved badly.

"And I think that's a really bad example."

While the pair will put their four children through university and help set them up, Mr Tuckwell said he just wanted them to do what made them happy.

"And if they create things themselves, then it's a sense of achievement," he said.

"Where as if you just give them stuff, it almost destroys their desire to do things and you actually end up with kids that are a lot worse off.''

ANU Vice-Chancellor Professor Ian Young said he was "gobsmacked" when he heard the scale of the donation.

"This is a very substantial gift so we were obviously delighted," he said.

"I think we were in a state of shock for quite a period of time about the generosity of the donation."

The couple will be part of a selection panel looking for the "smartest people around" from different disciplines and will consider grades, natural ability, background and drive.

Tuckwell Scholars will receive $20,000 a year for living costs and on-campus accommodation and will socialise together at "Scholars House".

It's hoped a sense of altruism will be engendered in the Tuckwell Scholars, who will give back to society in their own ways.

"What we're trying to identify is regardless of where they are now, innately how good are they, what's their real desire in life and where do they get to?" Mr Tuckwell said.

"We would like nothing more than getting kids from different states, different cities, different country towns, different whatever."

The program will be evaluated after five years before the Tuckwells decide whether to continue.

People can apply for scholarships at tuckwell.anu.edu.au.



Originally published as Sorry kids, I'm giving away my millions