Under a new scheme to be introduced by the federal government, universities will be measured for how many students complete their course and enter the workforce.

CSU vice-chancellor Andrew Vann said he welcomed the new measures along with the move to "lift a two-year freeze on support for undergraduate places".

"It is encouraging that universities will be measured for how well they perform in graduate employment outcomes, student success, student experience, and enrolment of Indigenous, disadvantaged and rural students, as these are criteria in which Charles Sturt boasts an enviable record," Professor Vann said.

"We are looking forward to getting more detailed information on the proposals for calculating the targets and indicators, at which time we will provide further comment."

The new funding scheme will be based on recommendations from an independent report, written by an expert panel chaired by the Vice-Chancellor of the University of Wollongong, which was released on Wednesday.

"Charles Sturt would like to thank the panel of five expert vice-chancellors for their work in devising the performance measures, and whole-heartedly endorses their overall approach, which encourages a focus on the same social outcomes which are closely aligned with Charles Sturt's mission," Professor Vann said.

CSU has more than 2660 students at its Wagga campus to the north of the city and takes in an above-average proportion of enrolments from a disadvantaged background.

A Good Universities Guide survey released in September showed that 85 per cent of CSU graduates were employed four months after completing their course compared to the national average of 71 per cent.

Federal Education Minister Dan Tehan said the new funding scheme would "incentivise universities to focus on their core business: producing job-ready graduates with the skills to succeed in the modern economy".

"While we have a world-class higher education system, it needs to be stronger, more sustainable and fit for purpose," Mr Tehan said.

"Performance-based funding amounts will grow in line with population growth...an increase of around $80 million next year.

Mr Tehan said the new scheme would start in 2020 and "ensure there are incentives for performance and transparency".

Professor Vann said CSU would provide feedback on the new scheme.