Australian government reintroduces education reform legislation – without caps

Following the government’s unsuccessful attempt in 2024 to pass changes through the ESOS Amendment Bill, education minister Jason Clare has reintroduced legislation aimed at “strengthening the integrity of the international education sector.”

The new bill closely mirrors last year’s version but omits the proposed cap on international student enrolments that contributed to the earlier bill’s failure to pass parliament.

“This legislation gives us more tools to stop unscrupulous individuals in the international education system trying to make a quick buck,” said education minister Jason Clare.

The government said this legislation will help to “crack down on dodgy practices” through a number of changes including “giving the government the power to limit or cancel a provider’s ability to deliver courses where it is in the national interest or there are systemic quality issues”.

The legislation also looks to enable the banning of commissions to education agents for onshore student transfers – a measure that has been widely debated in the sector lately.

Elsewhere, the bill – if passed – will require prospective providers to first deliver courses to domestic students for two years before they can apply to teach overseas students, “as evidence of their commitment to quality education”.

The legislation also aims to crack down on ‘phoenixing’ – when providers close or rebrand to avoid debts or regulatory penalties – by allowing the cancellation of registrations for providers that go 12 months without delivering a course to international students.

Moreover the legislation sets out that education providers will require authorisation from TEQSA to deliver Australian degrees offshore.

“This means that students who study with an Australian provider overseas will have the same confidence in the quality of an Australian qualification as those who study here. This is about safeguarding our reputation as a world leader in education,” the government said in a statement.

Australia’s future success requires a focus on quality, integrity and a great student experience. That’s why today we’re introducing amendments to crack down on exploitation, increase transparency, and safeguard the reputation of our sector
_{Julian Hill, assistant minister for international education}

“Australia’s future success requires a focus on quality, integrity and a great student experience,” commented assistant minister for international education, Julian Hill.

“That’s why today we’re introducing amendments to crack down on exploitation, increase transparency, and safeguard the reputation of our sector – after previous reforms were blocked in the Senate by the Liberal and Greens parties.”

Although the bill to introduce hard enrolment caps was blocked last year, the government’s introduction of visa processing directive Ministerial Direction 111 means that departmental officials now prioritise student visas for each provider until they reach 80% of their cap figure, also known as their Net Overseas Student Commencement number (NOSC), which was handed down under the government’s thwarted capping legislation.

For 2026, the government has set the total NOSCs at 295,000, up from 270,000 in 2025. This number has served as a planning target rather than a strict limit, with some providers exceeding their figure.

However, Clare has warned that future international enrolment targets will be more closely managed, with the Australian Tertiary Education Committee (ATEC), currently operating in an interim capacity, set to work university by university to ensure institutions meet – but do not exceed – their 2027 student allocations.

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