The amalgamation of the University of Adelaide and University of South Australia will create the nation's largest tertiary educator of domestic students and set the state up for long-term economic growth, Premier Peter Malinauskas said on Wednesday.
The merger was ensured after the government secured the support of two key crossbenchers: SA Best MP Connie Bonaros and One Nation's Sarah Game.
The pair pledged their votes in the upper house to pass legislation to create the amalgamation after Labor agreed to amend its bill.
Peter Malinauskas says Adelaide University will give South Australians a higher quality education.
The new Adelaide University would give young South Australians a higher quality education and the ability to get better jobs with better pay, Mr Malinauskas said.
It is hoped the mega-university will break into the top 100 institutions worldwide, attracting both domestic and international students in an increasingly competitive market.
"This is a historic agreement that has now got the ability to set South Australia up to have one of the finest universities not just in the country but also anywhere in the world," he told reporters.
"We don't want to see young South Australian students going to the University of Melbourne, go to the University of Sydney to get an educational outcome they deserve here home in South Australia."
The merger has been a major pillar of the government's policy platform and the premier has invested significant effort and political capital in getting the long-touted move over the line.
"You aspire to get into government to do the big things that can make a difference and this is a big policy," he said.
"I mean, this is one of the biggest micro-economic reforms that has occurred in South Australia in decades. These are powerful social and economic institutions and they belong to the people in our state.
"It's a big deal."
The government agreed to add $20 million to a $100 million fund for the new university targeted at improving access disadvantaged and regional students.
The additional funding commitment helped sway Ms Bonaros and Ms Game, who said it was crucial for students who otherwise would not have the opportunity to go to university.
"That is the opportunity that we are providing for those students and for me it crystallised my support for this merger," Ms Bonaros said.
Both crossbenchers maintained their support was not contingent on any deals with the government to further policies of their own.
A parliamentary report into the merger delivered on Tuesday found the move would improve the economic and social prosperity of the state.
But opposition education spokesman John Gardner and Greens education spokesman Robert Simms, who were both members of the committee examining the bill, dissented with the majority view.
They expressed concerns about the transparency of the process and potential negative impacts to the broader tertiary education sector, including that Flinders University would be disadvantaged by increased government funding for Adelaide University.
As part of the deal, Flinders will also receive $40 million for student support.
Ms Bonaros, who sat on the committee, said her SA Best colleague Frank Pangallo was still making his mind up about whether to support the bill as he had not had the same benefit of seeing the details behind the merger as she had.
Mr Simms criticised One Nation and Ms Bonaros for securing the passage of the bill before he had been given a chance to file amendments.
"The upper house has a responsibility to act as a house of review, not simply a rubber stamp for the government of the day," he said.
"The dud deal negotiated by One Nation and Ms Bonaros falls well short of what's required and misses a big opportunity for higher education in our state."
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