How Australia's Education Reforms Will Impact CRICOS RTOs
Migration is a cornerstone of Australia’s culture, with millions of temporary and permanent visa holders arriving each year. Many of these individuals stay long enough to join Australia’s skilled workforce.
CRICOS RTOs play a crucial role in supporting these migrants, providing them with the education and training they need to secure meaningful employment in Australia.
In recent years, the government has focused on addressing issues in the sector, concerned that Australia’s global reputation as an education leader could be compromised. This has led to a significant reduction in student visa grants, affecting enrolments across both Higher Education and Vocational Education and Training (VET) providers.
The Albanese government has proposed changes to the ESOS Act (Education Services for Overseas Students Act 2000) through the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024. This reform aims to enhance the quality and integrity of the international education sector in Australia.
Key Changes in the Proposed Amendments to the ESOS Act
Capping New Student Enrolments The new legislation allows the Minister to impose a cap on the number of international student enrolments that a CRICOS RTO can accept, both at the provider and individual course levels. While the exact cap limits have yet to be clarified, this move is intended to improve the quality and consistency of education for international students, though the practical implementation remains uncertain.
Ownership and Connections with Education Agents Many CRICOS RTOs partner with education and migration agents to recruit students. The proposed legislation gives the Australian Skills Quality Authority (ASQA) enhanced powers to scrutinize these relationships. Providers may be required to disclose their links with education agents, potentially through the Fit and Proper Person Declaration form. The government’s aim is to separate agents from education providers to reduce the exploitation of international students. Further guidance on the regulation of this practice is expected.
Pause on Applications for Initial Registration and Scope Expansion The Minister may have the authority to pause the processing of applications for initial CRICOS registration for up to 12 months. This change mirrors similar provisions in the National Vocational Education and Training Regulator Act (NVR Act) and is designed to give the Minister greater control over the sector’s expansion.
Cancelling Dormant Providers Providers who have not delivered training and assessment for 12 months will automatically lose their registration unless they apply for an extension, explaining the reason for inactivity. This change is intended to eliminate shell RTOs and ensure that only active, operating providers remain registered.
Banning Agent Commissions on Student Transfers The government plans to ban agent commissions for transferring students between providers. This aims to stop unscrupulous agents from poaching students and to reinforce the provider’s responsibility for supporting and advising their students.
Delivery History Requirement for CRICOS Market Entrants Applicants for initial CRICOS registration will be required to demonstrate a history of delivering education to domestic students. While this seeks to prevent low-quality or inexperienced providers from entering the market, it may reflect a lack of understanding of the international education sector’s dynamics.
Impact on Your CRICOS RTO
Although the government’s aim is to clean up the international education sector in Australia, the full impact of the proposed legislation on CRICOS RTOs is still unclear.
One positive outcome of the reform is the increased regulation of education agents. While agents have been valuable for recruiting students, the new framework aims to protect students from unethical practices.
The Bill is expected to be reviewed by Parliament again in August or September 2024.
If you need assistance navigating your CRICOS registration or setup, contact us for expert guidance tailored to your needs. We are here to help you stay compliant and succeed in Australia’s evolving education landscape.