Federal Education Minister Dan Tehan has delivered a higher education relief package that is "unashamedly" focused on domestic students.

Key points: There will be 20,000 places available in short-term nursing, teaching, health, IT and science courses

There will be 20,000 places available in short-term nursing, teaching, health, IT and science courses Universities will retain the $18 billion budgeted this year regardless of any fall in enrolments

Universities will retain the $18 billion budgeted this year regardless of any fall in enrolments Lobby group Universities Australia had wanted governments to provide hardship payments to international students, but this was rejected

The package includes funding for new short courses for the unemployed, a guaranteed $18 billion for domestic students regardless of enrolment numbers and $100 million in regulatory relief for education providers.

The Government said prices would be slashed for six months, and remotely delivered diplomas and graduate certificates in nursing, teaching, health, IT and science would be provided by universities and private tertiary educators.

"This plan will help Australians who have lost their job or are looking to retrain to use their time studying nursing, teaching, counselling, allied health or other areas considered national priorities," Mr Tehan said.

The Government said the 20,000 places offered for the first time in these short courses will also offset university losses from international students and allow greater flexibility.

"It will also provide a revenue stream for universities and private providers to assist their financial stability," Mr Tehan said.

"These reforms will help universities pivot towards a closer alignment of domestic industry and student demands through innovative micro-credentials delivered flexibly online."

The Government will also guarantee that $18 billion budgeted to go to universities this year for domestic students will arrive regardless of any fall in enrolments.

"The university sector came to the Government about three weeks ago and said that their number one priority was to be able to get a guarantee for their domestic student load," he said.

"We have done that now, this will put ballast into university funding for the rest of the year."

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International students miss out

Education Minister Dan Tehan announced the funding package in Canberra. ( ABC News: Matt Roberts )

Universities Australia (UA), the peak lobby group for Australia's 39 universities, had asked for two other forms of assistance the Government has declined to provide.

It has estimated revenue across Australia's universities will decline by between $3 billion and $4.6 billion.

Universities had wanted governments to provide hardship payments to international students struggling to pay their bills.

Some of these students were paid cash incentives by universities of up to $7,500 to travel to Australia via a third country when the pandemic was at its peak in China.

Last week, Prime Minister Scott Morrison said it was time for these students and other visa holders who are unable to support themselves to "go home".

Mr Tehan echoed the Prime Minister's message that the Government needed to focus on its own citizens.

"This is unashamedly focused on domestic students. We're going to need our university sector, we're going to need our broader tertiary sector to retrain and reskill Australians to help us emerge from the pandemic even stronger," Mr Tehan said.

UA was also asking to be able to access the Government's JobKeeper payments when revenue fell by 15 per cent rather than the 50 per cent threshold for universities with revenue over $1 billion.

"The university sector will still be eligible for JobKeeper but they'll have to meet the normal requirements for every other business," Mr Tehan said.

Labor's education spokeswoman, Tanya Plibersek, had warned universities were facing falling off a fiscal cliff and called for the domestic student funding to be guaranteed for three years.

The Government said one year was appropriate in a fluid, fast-moving situation.

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"My hope is the university sector will be able to see us through the next six months of educating and reskilling our domestic students, but then there might be a need to help even further next year. So we wanted to give them the certainty for this year and then look to see how we will support them in the years ahead," Mr Tehan said.

The third plank of the Government's relief package for the sector is $100 million in relief from government fees and regulations for universities and private tertiary providers.

"For the tertiary sector, over $100 million in fees and regulatory costs will be waived to also assist the sector," Mr Tehan said.

Universities Australia predicting 16 per cent drop in employment

UA said the package was a good first step but warned of more than 20,000 job losses in the sector without more help.

UA chairwoman Deborah Terry said the measures would not be enough to make up for its predicted shortfall in revenue.

"We estimate 21,000 jobs at Australian universities will go within the next six months," she said.

"Without guaranteed CGS [Commonwealth Grant Scheme] and HELP funding, that figure would have been even higher."

The lobby group welcomed the other three planks of the policy, especially guaranteed payments for domestic students regardless of a drop in enrolments.

"We welcome the Government's decision to pay CGS to projected enrolment figures even if student numbers drop in 2020 due to the impact of COVID-19," Professor Terry said.

"This assurance signals the Government's confidence in the sector and its crucial role in national recovery and is an important first step."

UA also said the Government's short course in areas of national need would benefit students.

"Universities will be working very hard to ensure these six-month-long courses are ready to commence in May," Professor Terry said.

"They will give people essential skills needed to help rebuild the Australian economy once the pandemic is over."

Independent Higher Education Australia, which represents private universities and higher education providers, welcomed the package.

"[The package] will boost education and career opportunities for Australians and provide relief for Australian independent higher education providers in this time of national crisis," CEO Simon Finn said.

The National Tertiary Education Union (NTEU) said the package would do "nothing" to address the multi-billion dollar revenue loss universities said was on the way.

"This will not plug the gaping hole in university finances left by the drop in international student income," NTEU national president Alison Barnes said.

Dr Barnes said the union would attempt to minimise job losses in discussions with institutions.

It also attacked the lack of support for international students, calling it "shameful".