Education Minister Jason Clare is confident the number of Indigenous students attending universities could double in the next 10 years, ahead of unveiling reforms to the sector.

Mr Clare is set to present recommendations from an interim review of higher education, also known as the Universities Accord, in a speech to the National Press Club on Wednesday.

The more than 70 recommendations in the report include measures to bolster Indigenous student levels.

While Productivity Commission data shows nearly 50 per cent of people under 25 are enrolled in a bachelor degree in Australia, only about seven per cent of Indigenous people in their 20s and 30s have a university degree.

Mr Clare said the report recommended guaranteed funding for Indigenous students be extended to those living in cities.

Currently, guaranteed funding exists only for Indigenous students in regional areas.

"If we really want to tackle the gap in opportunity, if we want to close that gap, if we're serious about that, then this is one way to do it," he told ABC Radio ahead of the speech.

"The evidence that's been accepted by the panel is that if we do this, we could double the number of Indigenous students at university in a decade."

It's estimated the cost of the measures would be $34 million over the next four years.

The interim report outlines five priority areas to address immediate issues facing the higher education sector aimed at growing student numbers and reducing inequity.

It's expected these will be addressed while larger-scale, systemic problems are solved.

The report calls for greater certainty in university funding by extending the Commonwealth Grant Scheme, guaranteed to December 2023, into 2024.

Extending tertiary education access to rural and regional students and abolishing the 50 per cent pass funding rule, which disproportionately affects students from poorer backgrounds, also feature as priorities.

The rule was introduced as part of the Morrison government's job-ready graduates scheme and requires students to pass at least 50 per cent of total attempted units to remain eligible for fee assistance.

It's estimated more than 13,000 students had been forced to quit due to the rule

Mr Clare said he would look to introduce legislation to abolish the 50 per cent pass rate rule when parliament resumes.

"We shouldn't be forcing students to quit we should be helping them to pass and universities should be putting those supports in to help students who need that assistance," he said.

The panel's report urges bold, long-term and significant change in Australia's higher education system and says complacency cannot be tolerated.

It also outlines the need for state and territory governments, through national cabinet, to commit to improving university governance.

This means focusing on universities as employers, student and staff safety and wellbeing, and ensuring people with expertise in university governance are present on relevant bodies.

"Australian governments should work together to strengthen university governing boards by rebalancing their composition to put greater emphasis on higher education expertise," the report says.

Mr Clare will talk in the speech about the importance of the tertiary sector as more future jobs will require employees with a TAFE qualification or university degree.

This means a bigger number of Australians are expected to enrol in higher education.

"There are about 900,000 Commonwealth-supported students at university today," Mr Clare will say.

"The accord team estimates that could jump to 1.8 million by 2050.

"That's a rough estimate, but it gives you an idea of the skills challenge we face."

Universities Accord panel chair Mary O'Kane said higher education was essential to the nation's prosperity and welcomed feedback on the interim report.

The Albanese government has agreed to act on the five immediate action areas identified in the interim report.

The panel is also considering more than 70 policy ideas for its final report, due in December.

Maeve Bannister and Andrew Brown - AAP