Australia student visa rules change: Agent commissions banned for transfers

New rules aim to curb course hopping and tighten oversight of education agents under student visa reforms

Australia has tightened rules around education agents, banning commissions for course or institution transfers by international students already in the country who have not completed their original programme. The change takes effect from March 31, 2026, and applies across universities, vocational colleges and schools.

 

The move is part of a broader push to clean up recruitment practices and reduce misuse of the student visa system.

 

A briefing note from the Department of Education said the measure targets practices that encourage unnecessary switches. “This change removes the incentive for unscrupulous education agents to facilitate unnecessary or non-genuine transfers. This change will support sector integrity and ensure that agents and providers are working in the best interests of their students,” the department said.

 

Under the revised framework, agents can no longer receive commissions from Australian institutions for helping onshore students move to a different course or provider that is not listed on their visa. Students may still pay agents directly for advice or counselling.

 

Why Australia is cracking down on course hopping

 

The rule flows from amendments to the Education Services for Overseas Students Act, passed in November 2025. Policymakers have focused on what regulators describe as “course hopping”, where students switch to lower-level courses or different providers shortly after arrival, often without academic or regulatory need.

 

Officials say such practices distort enrolment data and undermine trust in Australia’s international education system.

 

What the new rules allow agents to do

 

The ban is limited to mid-course transfers by students who have not completed their original programme. Agents may still earn commissions in certain situations, including:

 

• When a student completes their original course and then enrols in a new programme that requires a fresh student visa

• When students independently pay agents for counselling, study planning or advisory services

 

The restriction applies even if a student withdraws, faces course cancellation, or changes providers without finishing the course linked to their visa.

 

How institutions are being given time to adjust

 

To give providers time to adapt, the government has allowed a transition window. The ban will not apply where a student has accepted an offer of enrolment on or before March 31, 2026, even if the course begins later.

 

Officials say this is meant to allow institutions to honour existing contracts with agents while updating recruitment models.

 

The amendments also widen who counts as an education agent. The definition now includes individuals or entities working on casual or fixed-term contracts if they are involved in recruitment. Commissions cover both monetary and non-monetary benefits, including bonuses, service fees and gifts.

 

India placed in higher visa risk category

 

The announcement comes amid broader tightening of Australia’s student visa settings. Last month, India was moved into the highest-risk tier under Australia’s visa risk framework, alongside Nepal, Bangladesh and Bhutan.

 

All four countries were reclassified from Evidence Level 2 to Evidence Level 3 under the Simplified Student Visa Framework, increasing scrutiny of applications and supporting documents.

 

Ankit Mehra, CEO and founder of GyanDhan, told Business Standard that genuine applicants should not be alarmed. “Students with legitimate academic profiles and clean financial documentation have nothing to fear, only a longer wait,” he said.

 

At the same time, advisers warn that weak applications face sharper risks. “Students relying on fabricated funds or dubious paperwork risk severe consequences, including visa refusal and long-term damage to their global education prospects,” Mehra said.