South Australia's two largest universities, the University of Adelaide and the University of South Australia, are set to merge.

The SA Government has secured the necessary crossbench support for the legislation to merge the schools.

The government says it aims to pass the legislation before year-end, with the newly merged institution, to be known as Adelaide University, opening its doors to students in January 2026. 

The government expects it to become the largest domestic student educator in the country.

To gain crossbench support, the government agreed to increase the new institution's student support fund by $20 million, primarily focused on scholarships for students from low socio-economic and regional backgrounds. 

Additionally, a $40 million fund will be established for Flinders University to provide similar student support.

While there have been concerns about the distribution of funds, Premier Malinauskas says ongoing negotiations with Flinders University will ensure equitable allocation. 

The government plans to use the interest earned from the funds to benefit students and research.

The Greens, however, have criticised the agreement, calling it a “dud deal”.

The party believes the deal missed an opportunity for improved governance and increased input from staff and students in the merged institution's decision-making processes.

The government plans to introduce the merger legislation in parliament on Thursday, aiming for approval before the end of the year. 

An independent expert will oversee the transition of the two universities into the merged institution, using funds previously allocated for a University Merger Commission.

The merger is driven by the universities' desire for financial stability, the potential to improve educational offerings, and the anticipated boost to the South Australian economy. 

The merger could generate an extra $500 million for the state's economy by 2034 and create 1,200 new jobs. 

It also aims to make South Australia a top destination for international students, with an additional $30 million allocated for international student recruitment and an estimated 6,000 more international students by 2034.