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This Queensland Government submission has been prepared in response to an invitation to the Queensland Minister for Education and other state ministers from the Chair of the Higher Education Funding Sub-committee of the Senate Employment Workplace Relations and Education References Committee considering legislation. The submission addresses a number of key themes and issues as they are expected to impact on higher education in this State. In its consideration of the Commonwealth Government's higher education package, the Queensland Government offers recommendations for further consideration in the following areas: allocation of subsidised places; evaluation of reforms; regional loadings; governance; scholarship provision; international education; and Commonwealth/State relations. The submission suggests that new financial arrangements between the Commonwealth and States and Territories should be explored to match the changing relationships and interfaces across the education and training sectors, and to support students' transitions and pathways across the sectors. Funding approaches need to be more flexible to accommodate the movement of individuals within and across sectors.