Australia’s two national tertiary education regulators have fired an unmistakable warning shot across the bows of the international education sector, issuing a joint sector alert over what they describe as emerging attempts to circumvent new laws banning education agent commissions on onshore student transfers.
The joint alert from the Australian Skills Quality Authority (ASQA) and the Tertiary Education Quality and Standards Agency (TEQSA) says they have become aware of advertising and recruitment practices that appear inconsistent with both the intent and operation of the new rules.
“Both agencies view any attempts by providers or education agents to bypass this restriction as unacceptable,” the alert states, warning that providers failing to adequately manage these risks may face compliance assessments or regulatory action.
The warning identifies a number of practices attracting regulatory attention, including referral and incentive arrangements that effectively preserve commission-based behaviour, marketing designed to encourage unnecessary student transfers, weak oversight of education agents and third parties, inadequate governance of recruitment practices, and admissions processes that fail to properly assess whether transferring students are academically prepared for their new courses.
The regulators have also made it clear that responsibility rests squarely with providers, not just their agents.
Among the expectations outlined in the alert are that providers review all agreements with agents and third parties, closely monitor advertising and recruitment activity, ensure transparency around transfer arrangements, strengthen governance oversight at the board level and maintain robust evidence demonstrating compliance with the ESOS Framework.
Perhaps most significantly, ASQA and TEQSA have indicated they will treat the publication of the alert as a formal notice to the sector.
The regulators state they “will rely on having communicated this sector alert” during any future compliance assessments or regulatory action, effectively removing any suggestion that providers were unaware of regulatory expectations.
More than a compliance reminder
The prohibition on paying commissions for onshore student transfers was introduced as part of the Federal Government’s broader integrity agenda, responding to long-standing concerns that some education agents were encouraging unnecessary provider hopping simply to generate another commission payment.
The reforms were designed to ensure transfers occur because they are genuinely in a student’s educational interests, rather than because they represent another commercial opportunity.
Today’s alert suggests regulators are already seeing behaviour they believe may undermine that objective.
Equally noteworthy is the collaborative approach. While ASQA and TEQSA have increasingly aligned their regulatory activities in recent years, including releasing a Dual Sector Regulatory Strategy, a joint sector alert sends a stronger message than separate guidance from either agency alone. It demonstrates a coordinated regulatory approach across both the higher education and VET sectors.
For CRICOS providers, the practical implication is straightforward.
Marketing campaigns, agent agreements, referral arrangements and admissions processes relating to transfer students should now be under immediate review. Providers will also need confidence that governing bodies understand the new requirements and can demonstrate active oversight should either regulator come knocking.
After several years dominated by visa settings, enrolment caps and migration policy, today’s alert is a reminder that regulatory attention is once again shifting towards provider and agent behaviour.
For providers hoping the new commission ban would simply become another line in the National Code, ASQA and TEQSA have made one thing abundantly clear: they will be watching closely.
The alert can be seen here.
