In a move designed to stamp out so-called “course-hopping”, the Department of Education has banned universities and colleges from paying commissions to education agents when an international student already in Australia switches to a new provider before completing the original course. The new rule—set to take effect on 31 March 2026—was gazetted this week as an amendment to the Education Services for Overseas Students (ESOS) Act. (m.economictimes.com)
Until now, agents could receive a second commission if they persuaded a student to abandon an existing programme and re-enrol elsewhere, a practice critics say was often driven by migration-rather than education-outcomes. Under the revised framework providers may still pay agents for recruiting offshore students, and agents can still charge advisory fees directly to students, but any incentive linked to an on-shore transfer is outlawed.
Government officials argue the change will “remove the financial motivation for unnecessary churn”, strengthen sector integrity and protect students from high-pressure sales tactics.
![Australia bans education-agent commissions for on-shore student transfers]()
Whether you’re a university compliance officer verifying sponsorship obligations or a student planning a legitimate post-study pathway, VisaHQ can simplify the paperwork. Its Australia portal (https://www.visahq.com/australia/) offers real-time visa requirements, fee calculators and application support—resources that become even more valuable now that on-shore transfers face tighter scrutiny.
Institutions have been given a short transition window: transfers accepted on or before 31 March will be grandfathered, allowing providers time to adjust marketing contracts.
For mobility and global-talent teams the implications are twofold. First, fewer mid-course transfers should translate into more stable visa compliance and less paperwork when sponsoring graduate hires. Second, recruiters who rely on pathway arrangements will need to revisit agent agreements quickly to avoid breaching the new commission ban—breaches carry civil penalties exceeding A$90,000 per contravention.
With international students comprising roughly half of Australia’s temporary-migrant stock, the reform is also an early signal that Canberra intends to curb loopholes that feed rising net-migration numbers without slamming the door on genuine study pathways.
Until now, agents could receive a second commission if they persuaded a student to abandon an existing programme and re-enrol elsewhere, a practice critics say was often driven by migration-rather than education-outcomes. Under the revised framework providers may still pay agents for recruiting offshore students, and agents can still charge advisory fees directly to students, but any incentive linked to an on-shore transfer is outlawed.
Government officials argue the change will “remove the financial motivation for unnecessary churn”, strengthen sector integrity and protect students from high-pressure sales tactics.
Whether you’re a university compliance officer verifying sponsorship obligations or a student planning a legitimate post-study pathway, VisaHQ can simplify the paperwork. Its Australia portal (https://www.visahq.com/australia/) offers real-time visa requirements, fee calculators and application support—resources that become even more valuable now that on-shore transfers face tighter scrutiny.
Institutions have been given a short transition window: transfers accepted on or before 31 March will be grandfathered, allowing providers time to adjust marketing contracts.
For mobility and global-talent teams the implications are twofold. First, fewer mid-course transfers should translate into more stable visa compliance and less paperwork when sponsoring graduate hires. Second, recruiters who rely on pathway arrangements will need to revisit agent agreements quickly to avoid breaching the new commission ban—breaches carry civil penalties exceeding A$90,000 per contravention.
With international students comprising roughly half of Australia’s temporary-migrant stock, the reform is also an early signal that Canberra intends to curb loopholes that feed rising net-migration numbers without slamming the door on genuine study pathways.
