End of Onshore Commissions – Australia Commission Ban
Australia’s international education sector is undergoing significant changes. A new policy, the commission ban, is reshaping the landscape. This ban targets the financial incentives given to education agents.
Education agents are pivotal in guiding students to study in Australia. They help navigate the complex application process. However, the commission ban could alter their operations and income.
The policy aims to ensure fairness and transparency. It seeks to prevent conflicts of interest in student recruitment. This change aligns with global trends towards ethical practices.
Education providers must adapt to this new reality. They may need to rethink their marketing strategies. The focus is shifting towards quality and student outcomes.
Understanding these changes is crucial for all stakeholders. This article explores the implications and future of international education in Australia.
Australia has passed major reforms to stop unethical onshore student recruitment practices. These changes directly affect:
- Education Agents
- CRICOS-registered providers
- VET Sector Providers
- Universities & ELICOS institutions
- International Students currently in Australia
Read more about Australia’s student visa compliance requirements here »
What is the Commission Ban?
The commission ban targets the financial incentives that education agents receive from institutions. This policy seeks to regulate and ensure ethical recruitment practices. Understanding its scope is crucial for education providers and agents.
Education agents previously received commissions for enrolling students in institutions. These commissions varied based on the student’s choice of institution. However, the commission ban introduces new expectations for agent behaviour.
Key aspects of the commission ban include:
- Eliminating commissions based on student enrollments.
- Emphasizing transparency in recruitment processes.
- Aligning with global best practices for student welfare.
The ban aims to create a more level playing field for institutions. Education providers now focus more on quality and student outcomes. This shift could lead to a more balanced system free from financial bias.
Education agents will need to adjust their business models. The emphasis will be on providing high-quality guidance to students. Moving forward, agents must prioritize student needs over commission-based incentives. Understanding these changes is essential for succeeding in the evolving landscape.
The Education Legislation Amendment (Integrity and Other Measures) Bill 2025 introduces a new definition of:
- Education Agent
- Education Agent Commission
This allows the Government to ban commissions for onshore student transfers — preventing agents from “poaching” students for profit.
Providers must now report all commissions paid to education agents to the Department of Education.
⮕ For full legislative reference: Schedule 1, Part 1 ESOS Act amendments
Learn more about CRICOS registration compliance
Why Is This Commission Ban Happening?
This reform aligns with recommendations from:
✔ Rapid Review into Exploitation of Australia’s Visa System
✔ Migration Strategy 2024
✔ Joint Standing Committee Integrity Report
Why? Because commission-driven onshore transfers have led to:
- Student churn between low-quality providers
- Visa exploitation and labour market risks
- Misleading recruitment behaviour
- Declining education standards
The commission ban in Australia’s international education sector was established to address concerns about fairness and ethical recruitment. It aims to align Australia with global standards and practices. This policy seeks to improve transparency in agent-student relationships.
Some key reasons for the commission ban include:
- Preventing conflicts of interest in student placements.
- Promoting fair and transparent student recruitment processes.
- Enhancing the quality and integrity of educational services.
Previously, high commissions influenced agents’ recommendations, potentially compromising student interests. The ban intends to ensure that decisions are more aligned with students’ educational goals. By emphasizing ethical practices, the ban seeks to maintain Australia’s standing as a trusted destination for international education. In doing so, it supports a system where educational quality and student welfare take precedence over financial motivations.
Read about Government integrity measures in migration law
Key Reforms Affecting Providers & Agents
| Reform | Impact |
|---|---|
| Ban on commissions for onshore transfers | High |
| 2-year domestic delivery requirement | High |
| Automatic course suspension for low quality | Medium |
| Mandatory agent-commission reporting | High |
| Stronger “fit & proper” provider tests | High |
Education agents play a central role in guiding international students to study in Australia. The commission ban disrupts traditional business models, significantly impacting agents’ incomes. Agents may need to re-evaluate how they offer value beyond commission-driven guidance.
Providers, too, face new challenges due to the ban. They must adapt their recruitment strategies and possibly allocate more resources for direct student engagement. This change requires providers to highlight their unique offerings and student outcomes.
Key impacts for agents and providers include:
- Revising marketing strategies to attract students based on quality.
- Building more direct relationships with potential students.
- Adapting financial models to function without commission-based incentives.
Agents may need to diversify services to stay competitive, perhaps offering enhanced student support and advisory services. As the landscape changes, providers are likely to see increased competition. This scenario can foster innovation and improve services offered to international students. The ban, while challenging, opens doors for a more student-focused approach in the recruitment process, balancing quality education with ethical practices.
For International Students
The ban is designed to protect your rights, reduce exploitation and ensure your studies genuinely support your future in Australia.
Agents must shift towards ethical advisory services and:
- Ensure transparent fee structures
- Strengthen compliance record-keeping
- Terminate risky provider partnerships
- More direct interaction with universities.
- Increated focus on student-centred services
- Greater emphasis on educational quality and fit
International students might benefit from more transparent agent-student relationships. With reduced financial motives driving agent recommendations, students could receive guidance more aligned with their personal goals and preferences. This change could enhance trust and confidence in education choices.
These shifts could improve the overall reputation of Australia’s education sector. Students receiving honest and tailored advice might find their study experience more fulfilling. As a result, international students may enjoy a more enriching educational journey in Australia, marked by increased satisfaction and engagement.
For CRICOS Providers & VET Colleges
Higher compliance expectations include:
✔ Monitoring every agent relationship
✔ Tracking commission payments
✔ Uploading accurate PRISMS records
✔ Avoiding systemic quality issues
As Passed by Both Houses” Documentation Available
The official parliamentary record now lists the Bill under the status “As passed by both houses”, meaning the final text (including amendments) has been agreed and is awaiting presentation for Royal Assent.
The Bill brings a broad package of reforms, including:
- Major amendments to the ESOS Act — strengthening regulation of education agents and commissions; expanding powers to suspend or cancel provider registration or courses; subjecting course offerings to greater scrutiny.
- Amendments to the TEQSA Act — requiring higher-education providers offering Australian courses offshore to obtain TEQSA authorization and comply with reporting/notification obligations.
- Changes to the HESA — e.g., demand-driven Commonwealth-supported places in medicine for eligible Indigenous students.
- Other changes outside international education (e.g. early childhood/family assistance legislation) — but those lie beyond the scope of this summary.
Looking Ahead: The Future of International Education in Australia
These reforms put quality, transparency and student protection at the forefront.
Commission ban takeaway:
If an agent profits from transferring a student after arrival, it’s now a compliance risk.
By adapting now, providers and agents can not only remain compliant — they can lead with integrity in an evolving sector.
As Australia navigates this shift, the focus remains on quality and integrity. By prioritizing student welfare and outcomes, Australia aims to maintain its status as a top choice for international students. Providers and agents must adapt and innovate to thrive in this evolving environment.
Long-term success relies on fostering partnerships that align with ethical recruitment practices. As the industry evolves, these changes may inspire other nations to follow suit. Balancing regulation with opportunity will be key to a resilient education sector.
Disclaimer
The content of this article is provided for general informational and educational purposes only and does not constitute legal advice. The legislative reforms discussed — including amendments to the Education Services for Overseas Students Act 2000 (ESOS Act) and related regulations — are subject to ongoing parliamentary processes, transitional provisions and regulatory implementation.
Laws and policies may change without notice, and the practical application of these reforms may vary depending on each organization’s or individual’s specific circumstances. Readers should not act solely based on this information. Emigrate Lawyers accepts no responsibility for loss or damages arising from reliance on this content.
