The new funding scheme from the Morrison government will measure universities for how well they perform in graduate employment outcomes, students success, student experience, and enrolment of Indigenous, disadvantaged and rural students.

The new measures are part of the federal government's plan to increase spending on bachelor-level courses, with a rise of about $80 million annually from next year.

An expert panel of five vice-chancellors, who developed the performance measures for the government, said each university could receive an additional $1.88 million in 2020.

La Trobe Vice-Chancellor Professor John Dewar said the funding boost would be welcomed after the federal government froze funding to the universities from the beginning of 2018.

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"La Trobe University is pleased that the current freeze on Commonwealth funding for university places has been lifted," Professor Dewar said.

"We broadly welcome the Performance Based Funding approach proposed by the Federal government - especially around the important factors of employment outcomes, student experience and access to higher education for all Australians.

"The inclusion of measures relating to rural, low socioeconomic status and Indigenous groups is especially welcomed by us, given our rural and regional footprint."

Under the scheme, graduate outcomes would be measured by the university's employment rates once their students finish their degrees.

Student success would be measured by dropout rates among domestic first-year students, while student experience would be based on their satisfaction with teaching quality.

Universities would also be assessed on the participation of students from Indigenous, low socioeconomic, and rural backgrounds.

The expert panel recommended to the government that any unallocated funding should still be directed to the university system.

Underperforming institutions would have conditions imposed on the funding.

Vice-chancellors from around the country were briefed on the new scheme with Education Minister Dan Tehan on Wednesday.

Professor Dewar said La Trobe University would continue to assess the changes in the coming weeks.

"We are now working through the finer detail of the new policy and will be making constructive contributions to the Minister and Department around its effective implementation," he said.

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