Education Minister Simon Birmingham says the government is standing by its university deregulation plan for now, but could be open to compromise.
The Abbott government had been unable to get its higher education changes through the Senate, with Labor, the Greens and crossbenchers refusing to allow proposed funding cuts and higher debts for students.
Mr Birmingham, who took over the portfolio from Christopher Pyne on Monday, said he would be talking to universities, business and students about the way forward before taking a proposal to cabinet.
But until then "policies remain policies", he told Sky News.
Senator Birmingham said universities were coming under pressure from international competitors and needed to be "adaptive and capable of keeping up with that pace of change".
The final policy would not abandon the government's principles, he said.
"(But) I can say the Turnbull government is a pragmatic government which is about getting things done rather than bashing our heads against the wall," he said.
"If that means we have to compromise, that's what we will do."
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