Australia Cracks Down on Education Agent Commissions for Student Transfers
The Australian Government has announced a significant policy shift aimed at reforming how international student transfers are managed, targeting a practice that regulators claim has created distorted incentives across the education sector. Under the new regulations, education providers will be prohibited from paying commissions to education agents for recruiting international students who transfer between institutions after commencing their studies.
What the New Policy Entails
Once implemented, the policy will specifically ban commissions for post-commencement transfers, where students switch providers after beginning their courses. This measure is designed to reduce unnecessary course changes and shield students from being pressured into transfers that may not align with their academic goals or best interests.
According to official statements, the ban eliminates financial incentives that have encouraged some agents to persuade newly arrived students to abandon their original courses and move to different institutions. To allow existing contractual arrangements to conclude smoothly, commissions may still be paid in cases where a student is accepted by a new provider on or before 31 March 2026, providing a transition period for the sector.
Government Rationale Behind the Intervention
This commission ban follows legislation passed in November 2025 by the Albanese Government to strengthen oversight and integrity within Australia's international education system. While the earlier legislation established a broader regulatory framework, this specific ban targets behaviors that officials argue have compromised student outcomes and system integrity.
"Genuine providers have been calling for this important change, and the Government has listened and acted," stated Australian Assistant Minister for International Education Julian Hill in the press release. He emphasized that the policy aims to realign incentives within the education ecosystem, ensuring that agents and institutions prioritize student welfare over commission-driven motivations.
Expected Impact on Students and Education Providers
International students frequently depend on education agents to navigate complex processes involving admissions, visas, and enrollment decisions. The government contends that commission-driven transfers can disrupt academic progress, increase financial burdens, and leave students in worse positions both educationally and economically.
Assistant Minister Hill explained that the ban will directly address this problematic pattern: "It will curb the practice of agents persuading newly arrived students to abandon their course and unnecessarily transfer to another provider." For education providers, the change is anticipated to alter recruitment strategies and reduce competitive pressures to poach already-enrolled students from rival institutions.
The government has indicated that providers will receive direct communication once the updated National Code is published, including comprehensive guidance on compliance requirements.
Future Implications and Monitoring
The effectiveness of this commission ban will largely depend on rigorous monitoring and enforcement mechanisms. While the policy specifically addresses commissions linked to student transfers, education agents will continue to play a crucial role in international recruitment more broadly.
Over time, the impact may manifest through subtler changes rather than dramatic shifts:
- Fewer rapid, unnecessary transfers between institutions
- More stable enrollment patterns across educational providers
- Clearer accountability frameworks connecting agents, providers, and students
Whether these outcomes materialize will ultimately determine if the reform successfully achieves its core objective: placing student interests at the heart of Australia's international education framework.
