New ESOS Act – Integrity or Illusion?

The Australian government continues to insist that it is strengthening integrity within the international education sector. On the surface, this sounds like a step forward. But behind the announcements, industry insiders are bracing for a set of reforms that could do more harm than good.

One of the headline proposals is to ban commissions paid for onshore transfers of international students. The logic is simple: remove the financial incentive for providers and agents to encourage students to jump ship once they arrive in Australia.

But there may be legitimate reasons why a student might want to change institutions. More importantly, the so-called ban is riddled with “obvious loopholes” that can be disguised as payments in cash, marketing fees, or transactions funnelled through offshore companies. Instead of eliminating the problem, this approach is more likely to create another issue. 

There has been a further suggestion for a new “transfer fee” of A$2,500, may be introduced for students switching providers. On paper, this looks like a deterrent. In practice, it could become just another cost of doing business. Consider this scenario: a student signs up for a $100,000 degree program, only to discover that a $25,000 cookery course better suits their needs (or budget). Paying a $2,500 fee to save $75,000 is hardly a barrier, it’s a bargain.

The fallout from these reforms is uneven. Public universities are already exceeding their quotas, enjoying strong demand and government backing. Meanwhile, private providers, many of whom play a vital role in delivering vocational and pathway programs, are struggling to stay afloat. 

So, what should stakeholders make of all this?

• Policy changes meant to improve integrity may instead open up new loopholes.
  
• Private providers are being squeezed harder than ever, forced to fight for survival in a shifting market.
  

What Private Providers Can Do Now

While government policy may be stacked against them, private providers are not powerless. There are several strategies that can help them adapt and thrive:

1. Diversify Offerings – Focus on niche or high-demand programs (e.g., vocational skills tied to workforce shortages, industry-specific English, or micro-credentials) where universities can’t easily compete.
   
2. Strengthen Compliance – Make compliance a selling point. Providers who can demonstrate strict adherence to the ESOS Act, the National Code, and agent monitoring requirements will build trust with both regulators and students.
   
3. Enhance Student Support – Go beyond academics by offering strong pastoral care, career services, and settlement support. This builds reputation and retention.
   
4. Leverage Technology – Adopt CRMs, AI tools, and LMS platforms to streamline operations, improve student engagement, and cut costs.
   
5. Form Strategic Partnerships – Work with offshore agents, niche industry partners, and even universities to secure pipelines of students and revenue.
   

#InternationalEducation #Australia #VocationalEducation #Migration #ESOS #EducationPolicy