Higher Education Minister Kim Carr has accused former Prime Minister Julia Gillard of causing Australia National University to cut 230 jobs. Kevin Rudd's appointed Cabinet member has effectively blamed Gillard's budget cuts for the loss of jobs in a top Australian university that also ranked 37th in the recent World University Rankings.

Mr Carr said Australia National University's job cuts were closely associated with the Australian Labor party's decision to reduce university funding to $2.3 billion. Any changes that Kevin Rudd's government planned to implement would have to meet budget rules requiring new spending to be offset by savings.

The minister said he plans to re-evaluate the controversial university funding budget cuts implemented by Julia Gillard's government when Craig Emerson was still higher education minister. Limiting the number of undergraduate students who are able to study will supposedly generate budget savings.

Ian Young, chancellor of Australian National University, informed Mr Carr of the job cuts. The decision was part of the school's response to losing $50 million in federal funds for more than two years due to Gonski reforms on school funding.

University officials had indicated that the job cuts is a direct result of government decisions made in December. Mr Carr said Ms Gillard's budget cuts obviously made an impact.

The full impact of education reforms would also depend on the school's revenues coming from federal government funding. Many Australian universities heavily depend on government funding more than ANU.

Mr Carr plans on meeting with university vice-chancellors to discuss proposals on better ways to spend the schools' available resources. The education minister also wants to revisit the government's decision to "uncap" funding to push for a demand-driven system to benefit undergraduate degrees other than medicine.

Universities in Australia have been fighting against the announcement of higher education budget cuts amounting to $2.3 billion to fund school reforms.

Director of the Group of Eight universities Mike Gallagher welcomed Mr Carr's plans to reconsider the demand-driven funding system. National Tertiary Union national president Jeannie Tea said Carr should reverse "unjustifiable and unfair" cuts as a sign of good faith. The National Union of Students and Universities Australia backed the call to reverse budget cuts.