Pyne's higher education offer yet to gain support

AN OFFER of cutting government subsidies for universities that unfairly increase fees once the market is deregulated has not won over Labor or the Palmer United Party.

Fairfax Media reported Education Minister Christopher Pyne was shopping the proposal with Senate crossbenchers, as hopes of a compromise fade.

Mr Pyne  had offered a 20% cut to subsidies for those universities that increased fees above current levels.

Most universities support deregulation if the 20% cut to subsidies is removed from the reforms. But Palmer United Party leader Clive Palmer, and PUP senators Dio Wang and Glenn Lazarus, all reiterated their opposition on any deal on higher education reforms on Wednesday.

Similarly, Labor higher education spokesman Senator Kim Carr described it as a "new tax" on universities, rejecting any support from the Opposition for the changes.