Crackdown on Fraudulent International Education Practices

The Albanese Government is taking action to protect the integrity of Australia's international education sector and the welfare of genuine international students, which is crucial for the nation's economy.

Key measures include closing a loophole that allowed institutions to quickly shift international students into work arrangements, increased financial requirements for student visas, stricter scrutiny for high-risk applicants, and the possibility of suspension certificates for problematic providers. These changes aim to curb exploitation and safeguard the sector's reputation.

A joint media release with the Hon Jason Clare MP and the Hon Brendan O'Connor MP brought into focus the following key points:

• Closure of a loophole for international students under six months.

  One of the foremost changes introduced is the closure of a loophole that has enabled educational institutions to transition international students, who have spent less than six months in Australia, into an arrangement primarily designed to facilitate their entry into the Australian workforce. This concurrent enrollment scheme has seen a significant uptick in 2023, with approximately 17,000 concurrent enrolments created in the first half of the year. This represents a substantial increase compared to the combined figures of roughly 10,500 for the same period in 2019 and 2022.

• Increased financial requirements for student visas to prevent exploitation.

  Moreover, the government is raising the financial requirements for international students to obtain a student visa, as the current threshold has not been adjusted since 2019, failing to reflect the increased cost of living. Effective October 1, 2023, international students will need to demonstrate savings amounting to $24,505, representing a 17% increase from current levels, accounting for indexation since 2019. This change seeks to ensure that international students arriving in Australia have the financial means to support themselves and are not compelled to seek immediate employment, reducing the risk of exploitation.

• Stricter scrutiny for high-risk applicants.

  The government is also planning to subject high-risk cohorts to additional scrutiny and request supplementary documents to mitigate fraud in visa applications.

• Potential suspension certificates for problem providers.

  Additionally, it is contemplating the use of Section 97 of the Education Services for Overseas Students Act (ESOS Act) to issue suspension certificates to high-risk educational providers. Such certificates would prohibit these providers from enrolling international students, marking the first instance of an Australian government exercising this authority. The government will embark on consultations to establish clear grounds for the application of suspension certificates, including criteria such as fraudulent document submission and excessively high provider visa refusal rates. The government's particular concern centres on over 200 providers with visa refusal rates exceeding 50%.

• More measures to come in the upcoming Migration Strategy.

  Further measures to bolster the integrity of the international education sector will be explored in the forthcoming Migration Strategy, scheduled for release later this year.

The government is resolute in maintaining the quality of international education and cracking down on unscrupulous practices.

Quotes 

Minister for Education, Jason Clare:

"International student numbers are almost back to where they were before the pandemic. That’s a good thing. International education is an extraordinarily valuable national asset. But there are also challenges in international education. As students have come back, so have some dodgy and unscrupulous players who are trying to take advantage of them."

"This change will work to stop predatory ‘second’ providers from enrolling students before they have studied for the required six months at their first provider. This will help ensure the integrity of one of our biggest exports while cracking down on dodgy operators."

Minister for Skills and Training, Brendan O’Connor:

"These changes reflect our determination to strengthen the integrity of the VET sector. Nine out of 10 future jobs will require a post-secondary qualification and VET is a vital pathway to secure jobs. We are committed to lifting perceptions of VET, and this is an important step to do that."

"Ensuring we have a fit-for-purpose VET sector is critical in responding to skills shortages and teaching and training our existing and future workforce."

Minister for Home Affairs, Clare O’Neil:

"International education is our fourth-largest export – it’s essential that we maintain our global reputation for quality education. Our government has no tolerance for people who exploit students. Our message is clear – the party is over, the rorts and loopholes that have plagued this system will be shut down."