The government’s crackdown on international education has been warmly welcomed by leading figures across the sector since the first suite of measures were announced in late August 2023.
Further changes announced in early October were also welcomed, including “strengthening the standards required to gain and hold provider registration and prevent cross-ownership of businesses between education providers and education agents.”
Once again – these measures have the support of the sector (and indeed my support too). But it is surprising, especially in a week when IDP held its Annual General Meeting, that there seems to have been no discussion at all about what the changes to prevent “cross-ownership of businesses” between providers and education agents will mean for IDP and for the universities which still own a stake in the company?
While much will depend on how the legislative changes are drafted, it appears that at face value, they will require Australia’s public universities to sell off their remaining holdings in IDP (as will any other Australian education institutions with shares in IDP). While that requirement would have an immediate positive impact on university finances, it may not be so positive for IDP if there is a tight timeframe imposed by the government for when the ownership changes need to be made.
NextEd is another listed company that looks likely to be impacted by the proposed change. If the legislation passes, it appears NextEd would need to divest its student recruitment arm, Go Study Australia.
NextEd describes Go Study Australia as “one of Australia’s largest student recruitment agencies” with agreements with more than 300 universities and colleges across Australia, Canada, the US and the UK, supporting more than 5,000 students annually and offices in 16 locations. According to its annual report, Go Study Australia generated revenues of $5.3 million in FY23.
Both NextEd and IDP are highly respected institutions that will not have been on the government’s radar in relation to the changes needed to remove “the shonks” from the sector. But unless there are carve-outs included in the legislation, it appears that they may be two of the higher-profile organisations impacted by the government’s reforms.
Claire Field is a consultant and advisor to the tertiary education sector. To find out more visit her website.
