The federal government's higher education 'relief' package would not address an anticipated multi-billion shortfall in university income this year, the union representing university academics said.
Under the package, the government has agreed to guarantee funding for domestic students based on expected enrolment levels before the COVID-19 pandemic hit.
It is also creating cut-price online courses for Australians to re-skill at home.
The University of Newcastle, which stands to lose up to $30 million in revenue as a result of the pandemic, could not be reached for comment because it has shut down until April 27 as part of an extended Easter break.
Education Minister Dan Tehan said the guarantee of $18 billion for domestic undergraduate education would provide "ballast" for the sector to see out the crisis.
Ordinarily, the funding would be revised down throughout the year if enrolments dropped.
But the National Tertiary Education Union argued the $18 billion represented money that had already been budgeted for rather than an injection of new money.
"This will not plug the gaping hole in university finances left by the drop in international student income," National Tertiary Education Union national president Alison Barnes said.
Dr Barnes said the additional 20,000 short course places initiative was unlikely to include any additional funding other than what it costs to run them.
"We dispute the Minister's claim that this funding will offset universities' losses from international students," she said.
"The $100 million in regulatory relief is welcomed, but doesn't make up for a multi-billion dollar shortfall, Dr Barnes added."
Universities Australia estimates about 21,000 jobs will be lost from the higher education sector in the next six months.
"We're extremely disappointed that the government will not enable universities to access the Jobkeeper subsidy. Without it, tens of thousands of jobs in the sector are still threatened," Dr Barnes said.
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