Australia's two national education regulators have issued a strong warning to universities, colleges and vocational education providers, saying they will take regulatory action against institutions that attempt to bypass the ban on paying education agent commissions for onshore international student transfers.
In a joint sector alert released on Monday, the Tertiary Education Quality and Standards Agency (TEQSA) and the Australian Skills Quality Authority (ASQA) said they are concerned that some registered providers are continuing to advertise or operate in ways that appear inconsistent with the new rules.
The commission ban was introduced to stop education agents from encouraging international students to unnecessarily transfer from one education provider to another simply to earn commissions. Regulators say such practices may not be in the best interests of students and can undermine the integrity of Australia's international education system.
TEQSA and ASQA warned that providers found to be paying, offering or facilitating commissions linked to onshore student transfers could face compliance investigations and regulatory action.
The regulators also expressed concern about referral arrangements that effectively preserve commission-based behaviour, marketing that encourages unnecessary student transfers, weak oversight of education agents, inadequate governance, poor record-keeping and the recruitment of students who may not be academically prepared for their new courses.
Under the new expectations, providers must review all agreements with education agents and third parties, closely monitor recruitment advertising, ensure transparency in transfer arrangements and maintain strong governance and admissions processes. Institutions must also be able to demonstrate compliance through clear policies, monitoring systems and accurate record-keeping.
The warning is particularly relevant to Australia's large Nepali international student community, many of whom rely on education agents when choosing or changing education providers. In recent years, concerns have been raised across the sector about students being persuaded to switch colleges or courses without a genuine academic benefit.
The regulators stressed that any decision to transfer a student should be based on the student's educational interests rather than financial incentives for providers or agents.
Education providers that fail to meet the required standards under the Education Services for Overseas Students (ESOS) Framework, the National Code and other relevant legislation may face formal compliance assessments or enforcement action.
TEQSA and ASQA have urged all higher education institutions, registered training organisations and their governing bodies to immediately review their recruitment, admissions and transfer practices to ensure they comply with Australia's strengthened international education rules.
