Labor will oppose university funding cuts and higher course fees

The Turnbull government will have to rely on Senate crossbench support for its higher education package that includes funding cuts for universities and higher tuition fees for students.

Labor has confirmed its opposition to a two-year efficiency dividend on universities, an increase to student fees, and dropping the HELP loan repayment threshold to $42,000.

Fee increases will be capped at 7.5 per cent over the next four years, meaning the most students pay for a four-year degree is $50,000.

The most expensive, six-year medical degrees will cost students at most $75,000.

"There is no fee deregulation. There will be no $100,000 degrees," assistant education minister Karen Andrews told parliament today.

But universities won't see any of the extra money from students, with the government slashing its funding by the corresponding amount - on top of the 2.5 per cent cut to teaching funding in 2018 and 2019.

All up, the government hopes to save $2.8 billion from its latest plans to overhaul university funding.

"Clearly, Malcolm Turnbull thinks it's fair to saddle young Australians with a big uni debt at the same time as they are trying to buy a house, or start a family," Labor education spokeswoman Tanya Plibersek said.

"He is completely out of touch."

The Greens also oppose the cuts, meaning Education Minister Simon Birmingham will have to win over 10 of the 12 crossbenchers.

Independent senator Jacqui Lambie has already indicated she's opposed.

Legislation for the changes was introduced to parliament on Thursday.

It will also tie 7.5 per cent of government funding to universities to performance measures, starting with admissions transparency in 2018 and student retention and achievement from 2019.

Ms Andrews emphasised the long consultation the government has had with the sector over its new plan.

"Informed by both public and targeted consultation carried out over many months, this bill contains an innovative, balanced and, above all, an achievable set of reforms that can position the sector for the future," she told parliament.

The new package does away with changes proposed in the 2014 budget, including a 20 per cent cut to university funding and complete deregulation of fees.

Previous education minister Christopher Pyne made two doomed attempts to convince senators to support the old plan.