Labor will target high drop-out rates at university and make sure the graduates produced meet skills shortages.
But higher education spokesman Kim Carr categorically rejects claims he wants to re-cap the number of students universities can enrol.
"Access is a cornerstone value in our approach to education at all levels," he told the Universities Australia conference in Canberra on Thursday.
"That will not change."
Education Minister Christopher Pyne has accused Senator Carr of running a stealth campaign to reverse the Gillard-era demand driven system.
Senator Carr said that was a wilful misinterpretation of his remarks.
He says Labor's next focus in higher education will be on lifting quality and targeting high attrition rates.
Universities and government need to work together to make sure the graduates produced match labour force needs.
Senator Carr cited the oversupply of law graduates but chronic undersupply of people qualified in science and maths areas.
"In return for public investment, Labor expects universities to work with the commonwealth to help address national and regional priorities in education and the labour market," he said.
Balance had to be found between institutional autonomy and accountability for how taxpayer funds were used, he said.
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