Charles Sturt vice-chancellor Renée Leon warns regional students could be lost to city universities

The government has committed to an additional 20,000 university places over two years to tackle the skills shortage and give more students from under-represented backgrounds a chance to go to university.

Professor Renée Leon has welcomed the additional places but is concerned the competitive bidding process could be dominated by metropolitan universities and have negative consequences for regional areas.

"We strongly support the idea and the priority that the government's giving to education," professor Leon said.

"What we're concerned about is that a straight bidding process for these places hasn't given adequate consideration to the need to ensure that students are not siphoned out of the regions to be educated in city universities from which they are much less likely to return to work in regional areas."

As the September 19 deadline for bids looms, universities have been promoting their intentions to improve access for students from low socioeconomic backgrounds.

University of Sydney vice-chancellor Mark Scott this week announced a 10-year plan to make the sandstone institution accessible for disadvantaged students through scholarships and cheap accommodation.

The Charles Sturt vice-chancellor said city universities were lining up to take a cohort of students that were already well-served by regional institutions.

"They have loud voices, they have a lot of resources, and they are already indicating that they are going to be actively going after this caseload in a way that is almost certain to impact negatively on the viability of regional universities," she said.

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In 2021, Charles Sturt University had 18.6 per cent of its undergraduate cohort from low socioeconomic backgrounds and 3.8 per cent identified as First Nations.

About half of its undergraduate students were from regional, rural or remote locations, above the sector average of 24 per cent.

Professor Leon said once students moved to big cities for university, they were unlikely to return to the regions.

This could leave rural areas worse off when it comes to a shortage of workers in key industries such as education, health, engineering and information technology.

"Our data shows very clearly that of the students who are educated in the regional network [of universities], 75 per cent of them are working in the regions four years later," she said.

"We are calling on the government really to make sure the way that they deal with the bids doesn't neglect the important role that regional universities play in both contributing to the viability of the towns where we're located, and skilling the workforce that you have to have in the regions if you're going to keep country towns viable and attractive places to live."

Professor Leon said regional universities were well-equipped to support students who might not otherwise go to higher education, including indigenous students and those who are the first in their family to attend university.