One of Australia's leading universities is calling for a major overhaul of funding in the sector, saying Australia will need a highly educated population to boost productivity.

The University of Melbourne says the government should also establish a new venture capital fund to help commercialise university research.

It comes ahead of the treasurer's productivity roundtable next month - which the major universities haven't been invited to.

• Guest: Emma Johnston, Vice-Chancellor of the University of Melbourne
• Producer: Max Chalmers