The number of students entering engineering schools in Australian universities has increased tremendously over the last few years because of the Australian Federal Government's policy of increasing the participation rates of Higher School Certificate students and students from low social economic status backgrounds in the tertiary sector. They now come with a diverse background of skills, motivations and prior knowledge. It is imperative that new methods of teaching and learning be developed. This paper describes an online tutorial system used in conjunction with contextual physics and mathematics, and the revision of the relevant mathematical knowledge at the appropriate time before a new topic is introduced in the teaching and learning of engineering physics. Taken as a whole, this study shows that students not only improved their final examination results but there was also an increase in the retention rate of first-year engineering students which has financial implications for the university.