The Opposition has accused the Government of throwing a "hand grenade" into the centre of higher education by flagging it may revisit the idea of caps on university student places.

The new Higher Education Minister, Kim Carr, has indicated he wants to make changes to university funding to put more emphasis on quality instead of student numbers.

"I'm very concerned that there has been a rapid growth in the number of people participating in universities and am concerned to ensure that proper equity is maintained in the Australian education system," Senator Carr said.

The Opposition's education spokesman, Christopher Pyne, says he shares the new minister's concerns but says Senator Carr needs to explain what he is going to do about it.

"The new Minister for Higher Education has thrown a hand grenade into the centre of higher education in Australia," Mr Pyne said, adding that Senator Carr is the fourth minister in four months.

"The chaos and dysfunction of the Government has continued."

"You can put a new, shiny, coloured lid on a rubbish can but it's still a rubbish can, and that's the problem with the Labor Party - they have a new leader but it's still the same Labor Party," he said.

The Government last year removed the cap on the number of funded places, which has led to students with a lower academic result enrolling according to the university sector.

Carr under pressure to reverse funding cuts

Universities Australia is using the appointment of Senator Carr to put pressure on him to reverse multi-billion-dollar funding cuts announced earlier this year.

Senator Carr has signalled a willingness to re-examine funding for the sector but stressed there are budgetary constraints.

"I'm not suggesting that I can produce some magic pudding where extra money will fall like pennies from heaven," he said.

"What I am concerned to do is to ensure that the monies are available to improve the excellence of the system.

"The issue is, can we find a more effective way to spend the money that is already available?"

The head of Universities Australia, Belinda Robinson, says she is hopeful Senator Carr's comments are a sign the planned cuts will be reconsidered.

"Senator Carr has a proven track record around research and universities and certainly understands that the role that universities play in securing productivity for the nation and economic growth," she said.

She says some institutions are already preparing for cuts.

"Universities are now in the planning phases for their own budgets for 2014, they are looking at every cost centre very carefully," she said.

"A number of universities have made announcements about programs they might be cutting or abolishing."

Australian unis make world's top 100

Meanwhile, the Centre for World University Rankings has included two Australian institutions in its top 100 list for 2013.

The University of Sydney was ranked 92nd, up from 94th last year, and the Australian National University in Canberra came in at 96th after not making the list last year.

The University of Queensland, who made the 2012 list in 92nd spot, missed out this year.

Harvard University in the US took the top spot.