Australian federal government on Tuesday announced to spend millions on an assurance fund, to help international students manage sudden college collapses.

The Mid-Year Economic and Fiscal Outlook, released on Tuesday, showed the jobless rate is expected to fall to 4.5 percent in 2011/12.

Tertiary Education Minister Chris Evans said the strengthening Australian economy meant not as much money was needed for the retraining of retrenched workers.

"This allowed the government to redirect 55 million U.S. dollars from the productivity places program, in line with the need to find savings across the budget," Evans said in a statement on Tuesday.

Evans said Labor government will allocate another 25 million U. S. dollars over two years into the assurance fund, which helps international students manage sudden college collapses.

It is clear that a number of Australian international education providers will be under pressure in 2011 from a range of factors, Evans said, partly because of the high value of the Australian dollar.

For the first time in more than 14 years, an Australian minister for tertiary education last week gone to China to try to head off a potentially disastrous collapse in the number of young Chinese studying in Australia.

More than one in three of the 212,000 overseas students on university campuses in Australia are from China and one in 10 are from India. These two markets now comprise almost 46 percent of the total of international students in Australia.