Australia bans commissions for onshore switching, strengthens provider tests

The Australian government has introduced a ban on commissions for onshore student transfers between providers.

The ban is part of the government’s steps to enhance the integrity of its international education sector and protect the rights of students.

Additionally, the government is tightening regulations surrounding school ownership to prevent potential conflicts of interest.

The proactive response comes on the heels of the Rapid Review into the Exploitation of Australia’s Visa System or also known as the Nixon Review, which highlighted critical integrity issues plaguing the sector.

The ban on agent commissions for onshore student transfers aims to eliminate financial incentives for agents and providers to induce students to change institutions. This move ensures that students make academic choices based on quality rather than financial gains.

“Providers will be given greater access to agent performance data such as student completion rates and visa rejection rates,” the statement said.

Moreover, the government intends to amend the Education Services for Overseas Students Act 2000 (ESOS Act) to reinforce the existing fit and proper provider test.

The alteration will raise the bar for provider registration and put a halt to cross-ownership between educational entities and education agents.

“International students are back, but so are the shonks seeking to exploit them and undermine our international education system,” said Minister for Education Jason Clare.

“That’s why we are acting. Students from around the world choose to come here first and foremost for the high-quality education we offer,” he added.

Catriona Jackson, chief executive of Universities Australia, expressed her approval of these developments, stating, “These latest steps the government is taking will help protect students from unscrupulous operators seeking to exploit them for personal gain. Enough is enough.”

“We are fully supportive of the government’s focus on putting students first – that’s where they belong,” she continued.

The developments build upon the reforms announced in August, which aimed to close a loophole often exploited to transition students with less than six months in the country from studying to working.