A mining billionaire has made the biggest single philanthropic donation in Australian history – giving $65 million to higher education in Western Australia.

It is hoped the gift will inspire other extraordinarily wealthy Australians to give something back to the legions of people who make their success possible.

The $65 million will go to building a new residential college at the University of WA and a $50 million scholarship foundation for the state’s five universities.

Andrew ‘Twiggy’ Forrest has received his fair share of praise and criticism in his career, leading up to his current role as chairperson of Fortescue Metals Group, but it appears the balance has ended up in his favour. Mr Forrest has been acclaimed recently for his contributions to Indigenous training and job programs, into which he will now lead a government review.

“I don't think we can do enough to encourage education,” Mr Forrest said in an interview this week

“It is the ultimate solution to global poverty, though we're just getting in there, doing our bit and we think the University of Western Australia is a fabulous vehicle.”

The residences and scholarships are reportedly aimed at providing opportunities to people from remote areas and internationally as well – to attract the best minds to Western Australia.

“Wealthy people in Australia tend to give and give very quietly,” Forrest says

“That is wonderful that they do that, but if they actually give and let people know that, it acts as an inspiration.”

Mr Forrest's wealth has been estimated around $3.66 billion by the finance media, placing him ninth on a list of the Australia’s richest people.