The Australian Government will ban education providers from paying commissions to education agents for onshore transfers, discouraging the facilitation of unnecessary or non-genuine transfers.
The change, announced by the Australian Government Department of Education, applies to international students who have already started studying in Australia and later transfer to another provider.
What are onshore transfers?
An onshore transfer occurs when an international student changes education providers after they have begun studying in Australia. This can include moving between universities, vocational education and training (VET) providers, or other registered institutions.
Until now, some providers paid commissions to education agents for recruiting students who transferred from another Australian provider, sometimes referred to as 'poaching'. The new rule will stop those payments.
Why is the ban being introduced?
The government says the ban is designed to remove financial incentives that may influence advice given to students. In some cases, agents and providers benefited financially from frequent or unnecessary transfers, which could disrupt students’ studies, increase costs, and delay graduation.
By banning commissions for onshore transfers, the government aims to ensure decisions about changing providers are based on students’ best academic and personal interests, not on payments to third parties.
What exactly will be banned?
Under the new rules:
- Education providers cannot pay commissions or benefits to agents for recruiting international students who have already studied with another Australian provider.
- The ban applies even if a student has withdrawn, completed part of a course, or is between courses, as long as they originally commenced study in Australia.
The restriction applies only to onshore transfers. Commissions for offshore recruitment - before a student arrives in Australia - are not affected.
When does the change take effect?
A transition period will apply to allow providers and agents to adjust.
If a student is accepted for enrolment by a new provider on or before 31 March 2026, agent commissions may still be paid under existing arrangements. For offers made after that date, commissions for onshore transfers will no longer be allowed.
“Accepted for enrolment” refers to the date a provider formally offers a place, not the date a student begins classes.
What does this mean for international students?
International students will still be allowed to change providers, as long as they meet existing requirements under Australia’s student visa rules and the ESOS National Code.
Students can also continue to seek help from education agents if they choose. However, agents will no longer receive commission payments from providers for onshore transfers once the ban applies. Any fees charged by agents would need to be paid directly by the student.
The government says the reform is intended to improve transparency, reduce pressure on students to switch courses unnecessarily, and strengthen confidence in Australia’s international education system.
If you are considering a transfer, make sure to discuss options with your education provider first, and visit the Change in Your Situation page on the Department of Home Affairs website for more information.
