Relocation costs to be covered for rural and remote students

Students from regional areas will be given $5000 to help pay for relocation costs when they move to study a Certificate IV qualification or higher.

There will also improvements to Fares Allowance, to make it easier for relocated students to travel home during their first year of study.

Relocation costs have long been a barrier to many rural and remote students accessing a tertiary education.

Isolated Children's Parents' Association of Australia (ICPA) president Alana Moller was cautiously optimistic about the new package.

"The reforms announced by Education Minister Dan Tehan are a positive and encouraging step towards ensuring that rural and remote students who wish to participate in tertiary education are supported to reach their potential," Ms Moller said.

"These are positive steps in closing the rural and remote-urban divide that currently exists and these commitments will level the playing field for rural and remote tertiary students across Australia."

The package also includes $500 million to universities for programs that support Indigenous, regional and low socio-economic status students and $48.8 million to fund research collaboration between regional universities, industry and other higher education partners.

A further $21 million will go to establishing additional Regional University Centres throughout Australia.

Education Minister Dan Tehan said every Australian should have access to a world-class education, no matter where they lived.

"Our package provides additional support for Australians in regional, rural and remote Australia to have access to a world-class education," Mr Tehan said.

"Halving the gap in attainment and participation rates in regional and remote areas by 2030 will increase GDP by 0.6 per cent by 2050, or around $25 billion a year.

"We are supporting more Australians from regional and remote areas to learn the skills they will need to succeed in the jobs of the future."