Compliance Alert for Education Providers: TEQSA and ASQA Join Forces

Australia's tertiary education landscape is shaped by two key regulators: the Tertiary Education Quality and Standards Agency (TEQSA) for higher education, and the Australian Skills Quality Authority (ASQA) for vocational education and training (VET). Although there’s some jurisdiction overlap, particularly concerning CRICOS-registered institutions catering to international students, these agencies usually operate independently. However, a recent rare collaboration resulted in a joint alert aimed at enhancing compliance standards across the sector.

This month, TEQSA and ASQA publicly addressed their concerns regarding how education providers and agents manage onshore student transfers. The warning highlights that some promotional materials from registered providers seem to contradict the ban on paying commissions to education agents for these transfers, raising significant compliance issues.

In their alert, they stated:

“TEQSA and ASQA are aware of concerns that some advertising by registered providers appears inconsistent with the intent of the ban on the payment of education agent commissions in relation to onshore transfers.”

The alert specifically notes that any attempts to circumvent these restrictions are deemed unacceptable. Providers not managing the associated risks or adhering to established standards may face compliance evaluations or regulatory actions.

This warning ties back to a rule initiated in January 2026, now in effect since March 31, 2026. Under this rule, education agents can no longer receive commissions when an international student—already onshore—transfers between institutions without completing their course at the previous one. This regulation is part of revisions made to the National Code of Practice, officially titled the National Code of Practice for Providers of Education and Training to Overseas Students Amendment (Education Agent Commissions) Instrument 2026, which was included in the package of amendments to the Education Services for Overseas Students Act (ESOS) enacted in November 2025.

Regulatory Focus Areas

The joint alert identified a series of areas causing concern for the regulators:

• Commission-based recruitment or incentive arrangements related to onshore transfers.
• Encouragement of unnecessary student transfers from other institutions.
• Inadequate oversight of education agents by providers.
• Failure to publicly declare third-party arrangements facilitating transfers.
• Poor data management regarding agent activities and student enrollment.
• Insufficient governance, controls, and record-keeping practices around recruitment.
• Risk management failures with regard to accepting higher-risk students who are academically unprepared after transferring.

Compliance Expectations

TEQSA and ASQA expect education providers to exhibit comprehensive governance oversight that aligns with the recent National Code changes regarding commission payments. They outlined specific compliance checks:

• Review and amend agreements with education agents and any related third parties.
• Examine the marketing materials used by these education agents.
• Assess admissions and transfer processes to ensure compliance with the onshore transfer regulations.
• Maintain transparent policies backed by thorough monitoring and record-keeping procedures.

The regulators issued an unambiguous caution: “Providers who are not adequately managing these risks or not meeting the relevant Standards may be subject to a compliance assessment and/or regulatory action.”

The seriousness of this alert suggests that TEQSA and ASQA may intensify compliance evaluations or other interventions to address their concerns regarding onshore transfers. Providers are expected to proactively address these issues in anticipation of increased oversight.

For those immersed in this sector, this development isn't just a local message. Instead, it signals a larger trend in global education where scrutiny over international recruitment activities is widening. Ensuring strong quality assurance measures and oversight for recruitment practices will be critical for compliance moving forward.

For further reading, refer to the following resources:

• Australia introduces new rules restricting agent commissions for onshore student transfers
• Narrowing bands of compliance: How the UK’s new RAG system will impact international student recruitment
• Who decides about quality? Education agents and the question of increased regulation

For more insights, check the original post on ICEF Monitor.