The Australian Government has released a fact sheet outlining how the recently published changes to the National Code of Practice for Providers of Education and Training to Overseas Students will operate in practice, providing further clarity for providers, agents and students.
The update follows amendments to the National Code designed to curb what the government has described as “onshore poaching”, removing financial incentives for unnecessary or non-genuine student transfers between education providers. As reported by Tracy Harris via The Koala News yesterday, the changes form part of a broader integrity agenda under the ESOS framework, aimed at ensuring student decision-making remains in their best interests.
Under the revised rules, education providers are now prohibited from paying, or offering to pay, education agent commissions for the recruitment of an overseas student who has already commenced study onshore with another provider. Once a student has begun their course in Australia, a receiving provider can no longer financially reward an agent for facilitating that transfer.
Importantly, the government has built in a transition period to allow providers time to adjust their business models and honour existing contractual arrangements. The commission ban will not apply where a transferring overseas student is accepted for enrolment by their new provider on or before 31 March 2026. The student does not need to have commenced study by that date; acceptance alone is sufficient to fall within the exemption, as defined under the ESOS Act.
According to the fact sheet, the change is intended to remove incentives for agents to encourage students to switch providers unnecessarily, while reinforcing the expectation that agents and providers act ethically and transparently. The government says the reform will support sector integrity and help maintain confidence in Australia’s international education system.
The fact sheet also provides practical clarification on what constitutes a “transfer”. A transfer occurs when an overseas student moves from one provider to another without completing their course. This includes situations where a student withdraws, has their enrolment cancelled, or moves between courses in a package after having already commenced study. In all such cases, the receiving provider is prohibited from paying agent commissions for recruitment
However, the government has drawn clear distinctions between transfers and legitimate academic progression. A movement to further study after completion of a principal course does not constitute a transfer, meaning providers may continue to pay agent commissions even if a student completes one course and later enrols in a new qualification with a different provider. Similarly, progression through an approved package of courses listed on a student’s Confirmation of Enrolment remains unaffected, provided the courses and providers align with the original visa grant.
The fact sheet also details the understanding of what counts as an “agent commission” which was overhauled as part of the ESOS changes last year. The definition extends beyond direct payments to include non-monetary benefits such as bonuses, service fees, gifts, discounted services and other incentives. These provisions apply not only to traditional agent arrangements but also to casual or fixed-term contractors performing agent-like recruitment activities, reinforcing the government’s intent to close loopholes across the sector.
Crucially, the changes do not restrict a student’s right to transfer providers under Standard 7 of the National Code, nor do they prevent students from seeking advice or assistance from education agents. Students may still engage agents directly, including through fee-for-service arrangements, but agents will no longer be able to receive commissions from the receiving provider for onshore transfers.
For providers, the fact sheet underscores the need to review recruitment practices, agent contracts and internal compliance processes ahead of the March 2026 deadline. For the government, the update signals a clear expectation that financial incentives via education agents should not shape student mobility decisions within Australia.
As the sector continues to adapt to a rapidly evolving regulatory environment, the clarification offers welcome guidance.
The fact sheet can be seen here.
Standard 4 of the National Code has also been updated and can be seen here.
