The federal government is expected to announce reforms to Australia's higher education system in Tuesday’s budget announcement that would extend government largesse beyond public universities to cover private universities and about 130 non-university higher education providers.

The controversial decision would allow students greater opportunity to study cross-institutionally, between established universities and private operators.

The education reform would prove a boon to the Watson education precinct, a burgeoning partnership between the Academy of Interactive Entertainment, ScreenACT, the Australian Catholic University and ACT government schools.

The AIE announced on Friday that it will spend about $80 million over the next decade to transform itself into a major education player across four Australian capital cities, including Canberra.

The expansion at its Watson campus includes plans to build accommodation blocks able to house 300 to 400 students at a cost of $20 million over 10 years,

AIE chief executive John De Margheriti said talks had begun on combining forces with like-minded entities to bring the vision for a Watson education precinct to life.

''The vision is to create incubated work opportunities for graduates, expand into film and game production facilities, build affordable student accommodation for AIE and other partners under an open campus model [that] will reinforce community linkages and enhance local facilities for the Watson education precinct,'' Mr De Margheriti said.

The dean of the Australian Catholic University's Canberra campus, Patrick McArdle, said the two institutions had a mutual interest in altering perceptions of Watson from a residential suburb into a strong educational hub.

Associate Professor McArdle said discussions were at the early stages only but they included shared use of planned student accommodation and ACU students taking AIE classes.

''There is no point in major education providers in the area ignoring each other,'' he said.

''There's a benefit in seeing the extent we can collaborate. We'd like to see ourselves as partners.''

Another partnership will see ScreenACT – ACT Office of Film, Television and Digital Media – move on Monday into Canberra Technology Park under a three-year $150,000 sponsorship deal.

ScreenACT director Monica Penders said the agreement called for a hub for the local industry, providing access to state-of-the-art facilities, exposure to students who understand new media, and would provide myriad jobs for years to come.

''It's an exciting time for the local industry,'' Ms Penders said.