This article examines the early outcomes of the policy reforms that aim to increase substantially the proportion of Australians with a bachelor’s degree and improve equity of access. The changes rely on student choices dictating the flow and overall volume of government funding. The authors analyse the new policies and their implications for students and higher education institutions, focussing on: i) the initial evidence of impact on student numbers and the nature of the patterns of growth; ii) the effects on equity and the mix of students enrolled, both overall and between institutions; iii) the impact of increasing enrolments on government fiscal constraints and the pressure on student charges; iv) ensuring learning outcomes for all students and high-level outcomes for the most capable; and v) the role of universities and the place of other higher education providers in an increasingly diverse system.