Call to prioritise lowering student loan debt in 2025

Lowering student debt through changes to HECS and HELP loans, in addition to replacing the Job-ready Graduates Package, are two measures that will help to address Australia's skills needs, the statement says.

Under the package, funding arrangements were altered in a bid to redirect students into particular courses.

Universities Australia says a funding system should be developed which allocates resources based on the specific needs of students or institutions.

The body also called for practical, hands-on training for students in nursing and other health professions in short supply to also be expanded.

Universities Australia chief executive Luke Sheehy said the decisions made by the next federal government would shape Australia's ability to manage big shifts under way in the economy.

"Reforming our higher education sector in line with the Australian Universities Accord is essential to Australia's future productivity and economic growth," he said.

"We have no choice but to grow and improve our university system, Australia needs more of what our institutions do ... and quickly."

Mr Sheehy said universities needed to be "match fit" to deliver for the nation, and needed bipartisan support. 

The body said reliable funding models needed to be created to safeguard teaching and research, including through the re-establishment of an education fund.

Pointing to the universities accord, a wide-ranging review of the tertiary education sector handed down in February, Universities Australia called for innovation to be supported.

"Rapid technological, social, political and environmental change means we must produce more knowledge, skills, opportunities and research," it said.

"If we fall behind in this race, our productivity, innovation and standard of living will decline."

In November, the Labor government moved to wipe thousands of dollars off student debts with laws to cap the indexation rate for loans passing parliament.