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Australia Outlaws Education Agent Commissions on On-shore Student Transfers

Feb 27, 2026
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Australia Outlaws Education Agent Commissions on On-shore Student Transfers
In a major shake-up of Australia’s international education settings, the Australian Trade and Investment Commission (Austrade) confirmed on 26 February 2026 that education providers can no longer pay commissions to agents when an international student transfers between institutions while already in-country. The new rule, written into recent amendments to the ESOS Act, takes effect for any on-shore transfer that occurs on or after 31 March 2026. Providers may still pay commissions for the student’s initial offshore enrolment and for progression inside a packaged course, but not for a mid-course switch to a different provider. The ban responds to long-running concerns that commission-driven marketing was fuelling “course-hopping” and academic churn, undermining student welfare and jeopardising Australia’s reputation. A 2025 Parliamentary inquiry heard evidence that some agents were aggressively steering students to cheaper colleges with lighter attendance rules in return for higher fees. Removing the financial incentive aims to refocus counsellors on genuine student interests rather than quick commissions.

Australia Outlaws Education Agent Commissions on On-shore Student Transfers


Amid these adjustments, many international students and the HR teams that support them will also need clear, up-to-date guidance on Australian visa conditions. VisaHQ, an online visa and passport application service, helps students, parents, and employers check eligibility, compile documents, and lodge applications for Australian study or dependent visas through a streamlined digital platform. Their step-by-step interface and live support (https://www.visahq.com/australia/) can reduce errors and speed up processing—an advantage now that students may find themselves navigating transfers and enrolments without the cushion of agent commissions.

For institutions, the change will require a rapid rewrite of contracts with their agent networks. Marketing directors told Global Mobility News they are modelling worst-case revenue impacts of 3-5 per cent and training internal admissions teams to handle more direct enquiries. Agents, meanwhile, are considering introducing transparent service fees paid by students—common in Canada and the UK—to replace lost income. Education analysts expect the market to consolidate around larger, compliance-focused agencies with diversified offshore pipelines. International students already in Australia should see simplified paperwork and less pressure to move mid-course. However, those who do wish to transfer may face higher upfront advisory fees. Austrade emphasised that students may still seek advice from agents, and agents may charge students directly, provided pricing is disclosed and reasonable. The Department of Education is drafting regulations on acceptable fee practices and will monitor compliance through provider‐level agent reporting. In the short term, mobility managers in multinational firms should brief employees with dependent students about the rule change. Companies that reimburse tuition may receive fewer mid-semester invoices but could see claims for advisory fees. Longer-term, the ban is expected to lift overall sector integrity—an outcome welcomed by employers who rely on Australia’s post-study work routes for graduate recruitment.

Australian Visas & Immigration Team @ VisaHQ

VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.

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