The Government has introduced changes to the National Code of Practice for Providers of Education and Training to Overseas Students (National Code) aimed at preventing the onshore poaching of international students, a practice that education providers widely report is rife across the sector.
The changes prohibit providers from paying education agent commissions for the recruitment of international students who have already commenced study with another provider, with some limited exceptions.
The National Code of Practice for Providers of Education and Training to Overseas Students Amendment (Education Agent Commissions) Instrument 2026 outlines three circumstances where an education agent commission may still be paid for the recruitment of an international student who has commenced studying a course with another provider:
- Where students have been accepted by a provider before 31 March 2026.
- For the course that the student’s visa was granted, as specified in the Confirmation of Enrolment (CoE).
- Where a student has completed their principal course with one provider and is commencing a new course with a different provider.
Implementation date
The first circumstance effectively establishes the implementation date of the new legislative instrument. Providers may continue to pay agent commissions without restriction up to and including 31 March 2026, meaning the changes take effect from 1 April 2026.
According to Phil Honeywood, Chief Executive Officer, International Education Association of Australia (IEAA), “there was debate about [the] implementation date. While the Government were keen on a 1st January date, stakeholders argued for 1st July. In the end, a compromise of 31st March implementation date has been settled on”.
Other exceptions
There had been widespread concerns across the sector, including during the inquiry process into both the ESOS Amendment Bill and the Education Legislation Amendment (ELA) Bill, that a blanket ban would be imposed on all onshore agent commissions.
In its submission to the ELA Senate Committee inquiry, UNSW College argued that student transfers involving progression through Australian Qualifications Framework (AQF) levels represented “legitimate academic progression and alignment with student aspirations”, and that commissions should be permitted in these circumstances.
“Despite strong representations from IEAA and other peak bodies for exemptions, the Government set off on a path two years ago to ban onshore commission. [The working group] had some success in gaining agreement for commissions to be allowed for transfers going up an AQF level and for some third-party arrangements,” said Honeywood.
He was referring to the continued ability for providers to pay agent commissions where a student has completed their principal course with another provider and is commencing a new course, as advocated by providers such as UNSW College.
Education legislation
These changes to the National Code follow amendments to the Education Services for Overseas Students Act 2000 (ESOS Act) passed late last year through the Education Legislation Amendment (Integrity and Other Measures) (ELA) Bill 2025. Those amendments introduced new definitions of education agents and agent commissions.
It was in October 2023 when Minister for Education Jason Clare first announced the government’s intention to ban agent commissions for onshore student transfers, a move that was widely applauded by the sector at the time. The government’s earlier attempt to legislate these changes through the 2024 ESOS Amendment Bill was unsuccessful.
Consultation process
The government convened a working group with representatives from across the sector to discuss changes to the National Code relating to payment of agent commissions. However, concerns have been raised with The Koala about the lack of wider consultation. Some push back is expected, with critics arguing that the measures do not go far enough to address the underlying drivers of onshore poaching and/or risk creating unintended consequences for legitimate student transfers.
It has also been seen as a missed opportunity to update the National Code, which has remained unchanged since 2018.
What next?
The sector can expect the imminent release of a departmental fact sheet. According to Honeywood who says, “after strong representations, the Department of Education will put out a Fact Sheet in the next 48 hours”.
Stay tuned!
A copy of the legislative instrument is available here.
