Australian regulators raise compliance concerns over agent commission ban

The warning follows Australia’s new restrictions on agent commissions for onshore transfers, designed to prevent financial incentives driving unnecessary student transfers.

The Tertiary Education Quality and Standards Agency (TEQSA) and the Australian Skills Quality Authority (ASQA) said some provider advertising appeared inconsistent with the intent of the ban.

“Any attempts by providers or education agents to bypass this restriction are unacceptable,” the regulators said.

The alert warns that some providers may be using referral arrangements, recruitment incentives or marketing practices that effectively preserve commission-based behaviour.

TEQSA and ASQA said the ban was designed to protect students and maintain integrity in Australia’s international education sector.

“The ban is intended to remove incentives for unscrupulous education agents to facilitate unnecessary onshore transfers that may not be in a student’s best interests,” they said.

The ban is intended to remove incentives for unscrupulous education agents to facilitate unnecessary onshore transfers that may not be in a student’s best interests
TEQSA, ASQA

Providers have been told to review their agreements with agents and third parties, monitor recruitment practices, strengthen governance controls and ensure transfer decisions are made in students’ best interests.

The regulators also warned that providers failing to manage risks or comply with relevant standards could face compliance assessments or regulatory action.

“Our expectation, in any subsequent compliance assessment or regulatory action that is undertaken, is that providers will have taken action,” TEQSA and ASQA said.

The alert applies to both higher education and VET providers and requires institutions to demonstrate compliance through clear policies, monitoring and recordkeeping.

TEQSA chief executive Mary Russell and ASQA chief executive Saxon Rice said providers should treat the issue as a priority and ensure governing bodies understand the risks and controls in place.

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