How Australia’s Education Reforms Will Affect CRICOS RTOs
Migration is a major part of Australia’s culture. We welcome millions of temporary and permanent Visa holders every year, and many of those people stay long enough to enter Australia’s skilled workforce.
CRICOS RTOs support those migrants, providing the education and training opportunities people need to find meaningful work while they’re in Australia.
In recent years we’ve seen the government focus on a few bad apples in the sector, with the fear that Australia’s reputation as a world leader in education could be tarnished. Government policy has meant a dramatic reduction in student Visa grants, hurting enrolment numbers for many education providers across the Higher Education and Vocational Education and Training (VET) sectors.
The Albanese government has proposed legislative amendments to the ESOS Act (Education Services for Overseas Students Act 2000) via the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024. The government has stated that these changes are aimed at improving the quality and integrity of the international education sector.
What’s Included in the Proposed Amendments to the ESOS Act?
1. Capping new student enrolments
The new legislation allows the Minister to place a cap on the number of international student enrolments that a CRICOS RTO can accept. Caps can be placed at the provider level and/or at an individual course level.
There’s currently no information on the number of international students RTOs will be allowed to accept.
The government has commented that the change is designed to improve the quality and consistency of education that international students are receiving, however, the way this translates into practice remains to be seen.
2. Ownership and other links with education agents
CRICOS RTOs have often partnered with education and migration agencies to recruit new students. Under the proposed legislation, the Australian Skills Quality Authority (ASQA), the regulator, will be granted further powers to request information about the relationship between education providers and education agents. This request for information will likely be incorporated into the Fit and Proper Person Declaration form.
The government considers that creating separation between agents and education providers will reduce exploitation of international students. This may be a positive step, and we await further advice from the government as to how this will be regulated in practice.
3. Pause on applications for initial registration and add to scope
The Minister will be granted a power to declare a pause on processing of applications. This may mean that processing of applications for initial CRICOS registration are ‘paused’ for a period of up to 12 months. These changes reflect the recent amendments to the National Vocational Education and Training Regulator Act (NVR Act) where similar powers were vested in the Minister.
4. Cancelling dormant providers
Providers that have not delivered training and assessment for a period of 12 months will automatically lose their registration status, unless they make an application to extend the measurement period and provide reasons why delivery did not take place. This change mirrors the recent amendments to the NVR Act and is aimed at cracking down on shell RTOs.
5. Removing agent commissions on student transfers
The Government is also set to ban agent commissions for student transfers.
The new definition of ‘education agent commissions’ prohibits agent commissions for onshore student transfers between providers. Such a ban aims to eliminate incentives for dodgy agents and providers to poach students, reinforcing the provider’s primary responsibility to support and advise their students.
6. Delivery history required for CRICOS market entrants
If the new laws are passed, applicants for initial CRICOS registration will need to show a history of providing education to domestic students. This move aims to prevent low quality, inexperienced providers from entering the market. This proposed change demonstrates a lack of knowledge and understanding from the government about the nature of international education providers.
How Will This Affect Your CRICOS RTO?
Despite the government’s intention to “clean up” international education in Australia, we’re unsure how the proposed legislation will impact CRICOS RTOs.
One of the positive steps to come out of the new legislation is increased regulation on education agents. While the industry has often looked to agents for help with new enrolments, the proposed framework will protect students from unscrupulous behaviour.
The Bill will likely be considered again by Parliament in August or September 2024.
