The federal government in Australia has announced a $A2.8 billion cut to the university sector to help pay for school education reforms.
From January next year universities will be hit by an efficiency dividend of 2%, saving the government $900 million.
The ABC reports a 10% discount on payments of student loans will also end. These were worth $A230 million.
Announcing the measures on Saturday, Tertiary Education Minister Craig Emerson said the changes were vital for the future of school education.
Opposition Leader Tony Abbott said the cuts were in addition to $A3.9 billion worth of cuts to education announced towards the end of last year.