The failure to return money owed to international students is deeply concerning and students’ rights must be respected, according to Sarah Bendall, First Assistant Ombudsman, National Student Ombudsman (NSO). Her comments follow the release of an NSO report into whether a higher education provider complied with the Education Services for Overseas Students Act 2000.
The report, Short-changed: The cost of refund non-compliance, details the findings of an investigation into Crown Institute of Higher Education (CIHE) and its handling of two international students’ course withdrawals, transfers and refunds.
The NSO found CIHE’s handling of the two cases was unfair, unreasonable and appeared contrary to the law. It also expressed concern that CIHE knew its obligations under the ESOS framework but chose not to follow them because it considered the statutory refund requirements unfair to providers.
“The report sends an important message to the higher education sector: compliance with legal obligations is not optional,” Bendall said.
The investigation identified previous complaints involving similar issues and concluded that the number of affected students was likely to extend beyond those who had complained to the NSO or the Overseas Students Ombudsman.
The NSO recommended that CIHE:
- amend its withdrawal, transfer and refund policies and associated staff guidance
- ensure staff understand the distinction between withdrawing from a course and seeking a release to transfer providers
- cease asking students for evidence of an appeal against a visa refusal before processing a refund
- audit every international student refund request received since CIHE commenced operations in 2019 and rectify any incorrect decisions or payments
- review its written agreements and policies concerning tuition fees and charges for providing documents.
CIHE argued that the findings did not adequately account for providers’ operating models and financial commitments but accepted all 13 recommendations. The NSO will monitor their implementation, including through follow-up with CIHE within six months.
The report notes that 11 of the recommendations are enforceable under Standard 10.4 of the National Code of Practice for Providers of Education and Training to Overseas Students 2018.
The NSO commenced operating in February 2025 and considers complaints from domestic and international students about Australian higher education providers, including complaints about fees and refunds.
The report is available from the NSO here.
