Universities could be fined up to $100,000 for failing to take care of students in their halls under a raft of changes announced by the Government.

The urgent law change comes after the nation was shocked by the death of Mason Pendrous, whose body was discovered weeks after he died at Sonoda, a University of Canterbury hall of residence.

Education Minister Chris Hipkins said interim changes will be in place by start of the academic year in 2020, following a Cabinet decision on Monday.

A new mandatory code of practice for university halls will replace the current voluntary one.

This code will clarify the standard of pastoral care that universities will be required to use in their halls, which Hipkins said were currently inconsistent.

"The recent death at a student hall of residence in Christchurch exposed the limitations of our current system," Hipkins said.

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An interim code will be developed immediately ahead of the 2020 academic year, then a permanent code developed for the following year.

If a student was harmed or died in a hall the university could be fined up to $100,000 if it had not followed either of the codes, under a new offence being created under the Education Act.

Education Minister Chris Hipkins announced the changes to university halls on Monday.

Hipkins made clear that the university itself would be liable - not the operator.

"There is no consistent approach to the welfare and pastoral care of domestic tertiary students and we needed to change that swiftly," Hipkins said.

"Halls and hostels charge a premium for their accommodation and parents have every right to expect a high level of care for their sons and daughters.

"Students should also be assured when they choose to live in a hall or hostel that there are minimum standards of safety and that there is support available to them if they need it."

Hipkins said self-regulation from the voluntary code had clearly failed. 

The new code will apply to domestic students as there is already a higher standard for international students.

The new offence will cover both international and domestic codes.

Hipkins said the safeguards were being put in place to prevent another tragedy like the death of Pendrous.

Police believe the teenager died almost a month before he was found. The circumstances are not believed to be suspicious and inquiries to date have found no evidence of self-harm or drug use.

Pendrous was living in his apartment-style room at Sonoda, a hall of residence run by global student accommodation provider Campus Living Villages (CLV).

Former High Court judge Kit Toogood is leading the investigation commissioned by the university.

The inquiry is looking at the circumstances surrounding the delay in finding that Pendrous had died, whether anyone from the university, CLV or elsewhere raised concerns about his welfare, and any response to such concerns.

It is examining the policies, processes and procedures for monitoring and responding to student welfare issues both at the university and at Sonoda, and whether those policies were adhered to.

Toogood is expected to report back with his findings and any recommended changes by mid-November.