Onshore Course Transfer Commission Ban in Australia – Major Update

Australia has introduced a major regulatory reform affecting international students, education agents, and education providers — the Onshore Transfer Commission Ban.

This change directly targets unethical recruitment practices and has serious implications for student visa holders transferring courses or providers while onshore.

At Emigrate Lawyers, we regularly advise international students who unknowingly place their visas at risk due to poor or commission-driven advice. This guide explains exactly what the ban is, who it affects, and what it means for you.

What Is the Onshore Transfer Commission Ban?

The Onshore Transfer Commission Ban prohibits Australian education providers from paying or giving commissions (financial or non-financial) to education agents for recruiting international students who are already studying onshore and transferring from another provider

This reform was introduced under changes to the National Code of Practice for Providers of Education and Training to Overseas Students 2018, made under the ESOS framework.

Once a student has commenced study onshore, no commission can be paid by the new provider if the student transfers.

When Does the Commission Ban Apply?

The ban applies if all of the following are met:

• The student is an international student in Australia
• The student has already commenced a course
• The student transfers to another provider before completing the course
• The new provider accepts the student after 31 March 2026

If these conditions apply, any commission payment is illegal

Transitional Rule: Important 31 March 2026 Cut-Off

There is a transition period to allow providers and agents to adjust.

✔ Commission payments ARE allowed if:

• The student is accepted for enrolment on or before 31 March 2026
• Even if the student commences after this date

This exception exists to allow providers to honour existing contracts with education agents.

What Is Considered an “Onshore Transfer”?

An onshore transfer occurs when:

An international student moves from one education provider to another without completing their course.

The ban applies even if:

• The student withdraws
• The enrolment is cancelled
• The student is between courses in a package

Once a student has commenced study, they are considered onshore for the purpose of this ban.

What Does NOT Count as a Transfer? (Very Important)

These situations do not trigger the ban:

✅ Movement to Further Study

If a student completes their principal course and then enrols in a new course (e.g. Bachelor → Master), commissions are allowed.

✅ Packaged Courses on the Visa

If the student visa was granted based on multiple CoEs listed on the visa, commissions may be paid only for those listed providers.

🚫 If the student changes to a provider not listed on the original CoE, commissions are banned — even if the course name is identical

What Counts as an Education Agent “Commission”?

The ban applies to all forms of benefit, not just cash.

This includes:

• Monetary commissions
• Bonuses or performance payments
• Gifts or incentives
• Free or discounted services
• Any reward given to an agent or their associate

Even individuals on casual or fixed-term contracts performing recruitment ac

Can International Students Still Change Providers?

Yes. The ban does not stop students from transferring.

Under Standard 7 of the National Code, students may transfer:

• After completing 6 months of their principal course
• Or earlier in exceptional circumstances, including:
  • Provider closure
  • ESOS sanctions
  • Approved release recorded in PRISMS
  • Government sponsor approval

The ban affects agent payments, not student rights.

Can Students Still Use Education Agents?

Yes — but with a major change.

If an agent assists with an onshore transfer:

• The new provider cannot pay the agent
• The student may:
  • Pay the agent directly, or
  • Receive unpaid assistance

This ensures advice is student-focused rather than commission-driven

Frequently Asked Questions (Q&A Section)

Is onshore transfer banned in Australia?

No. Onshore transfers are still allowed. What is banned is education agent commissions for those transfers.

Can changing courses affect my student visa?

Yes. Poorly planned transfers can trigger:

• Genuine Student (GS) concerns
• Visa refusals or cancellations
• Breach of visa conditions

Always seek legal advice before transferring.

Can education agents still help international students?

Yes, but they cannot receive commissions from the new provider for onshore transfers.

Does the ban apply to all agents?

Yes. The definition includes individuals and entities involved in recruitment, including some contractors.

What happens if a provider pays commission illegally?

Providers may face:

• ESOS compliance action

• Regulatory sanctions

• Loss of registration

Agents may also face reputational and contractual consequences.

Why the Onshore Transfer Commission Ban Matters

From a migration law perspective, unnecessary transfers often lead to:

• Visa refusals
• Compliance breaches
• Financial loss for students
• Exploitation of vulnerable international students

This reform strengthens sector integrity and protects students from being treated as commission opportunities rather than individuals.

The Onshore Transfer Commission Ban reshapes how international education operates in Australia. Understanding it is essential to protect your visa, your money, and your future.

Disclaimer

The information contained in this article is provided for general informational purposes only and is based on publicly available guidance under the Education Services for Overseas Students Act 2000 (Cth) and the National Code of Practice for Providers of Education and Training to Overseas Students 2018 as at the date of publication.

This article does not constitute legal advice, migration advice, or education advice, and should not be relied upon as a substitute for obtaining advice tailored to your individual circumstances. Migration law and education regulations are complex and subject to change, and the application of the law may vary depending on personal, visa, and enrolment circumstances.

Before making any decision relating to course transfers, education providers, education agents, or visa applications, you should seek independent legal advice from a qualified Australian migration lawyer or registered migration agent.

Emigrate Lawyers accepts no responsibility or liability for any loss, damage, or consequences arising from reliance on the information contained in this article.