Australia moves to ban agent commissions for international student transfers: Here's what to know

Australia is moving to change how international student transfers are managed, targeting a practice that regulators say has distorted incentives across the education sector.

Under a new policy announced by the Australian Government, education providers will be banned from paying commissions to education agents for recruiting international students who transfer from one provider to another after beginning their studies. The measure is aimed at reducing unnecessary course changes and protecting students from being pushed into transfers that do not serve their academic interests.




According to a government press release, the ban removes financial incentives that have encouraged some agents to persuade students to abandon their original courses and move institutions soon after arrival in Australia.

What will change

Once the policy takes effect, education providers will no longer be allowed to pay education agents a commission for facilitating transfers between providers for students who have already commenced study. The restriction applies specifically to post-commencement transfers, which have been a point of concern for regulators overseeing international education.

The Government said the move is intended to ensure that agents and institutions are acting in the best interests of students, rather than responding to commission-driven motivations.

To allow existing contractual arrangements to run their course, commissions may still be paid in cases where a student is accepted by a new provider on or before 31 March 2026, according to the press release.

Why the government intervened

The commission ban follows legislation passed in November 2025 by the Albanese Government to strengthen oversight and integrity in Australia’s international education sector. While that legislation set the broader framework, the commission ban targets a specific behaviour that officials say has undermined student outcomes.

“Genuine providers have been calling for this important change, and the Government has listened and acted,” Australian Assistant Minister for International Education Julian Hill said in the press release.

Hill said the policy is designed to realign incentives within the system. “Banning education agents from gaining unnecessary commissions will strengthen integrity in Australia’s international education system, and put the interests of students first,” he said.

Impact on students and providers

International students often rely on education agents to navigate admissions, visas and enrolment decisions. The Government argues that commission-driven transfers can disrupt studies, increase costs and leave students worse off academically and financially.

Hill said the ban would address this pattern directly. “It will curb the practice of agents persuading newly arrived students to abandon their course and unnecessarily transfer to another provider,” he said.

For education providers, the change is expected to alter recruitment practices and reduce competitive pressure to attract already-enrolled students from rival institutions. The Government said providers will receive direct communication once the updated National Code is published, including guidance on compliance.

What to watch next

The effectiveness of the ban will depend on how closely it is monitored and enforced. While the policy addresses commissions tied to transfers, agents will continue to play a central role in international recruitment more broadly.

Over time, the impact is likely to be felt not through headline shifts, but through quieter changes: fewer rapid transfers, more stable enrolments and clearer lines of accountability between agents, providers and students. Whether those outcomes materialise will determine whether the reform achieves its stated aim of placing student interests at the centre of Australia’s international education system.Ready to navigate global policies? Secure your overseas future. Get expert guidance now!