Is the squeeze finally coming on rogue providers? Yes but some questions still remain…

A screenshot of an Excel spreadsheet makes an unusual image for an article – but I chose it deliberately because our discussions as the government unveils further changes to reduce Australia’s attractiveness as a study destination for all students – should be about trying to get the government’s attention where it is needed.

And the data shows that the government’s focus both in terms of student enrolments and ‘dodgy’ behaviour’ is definitely not needed across the whole sector.

Before I get to the bad news, announced today, which will impact all students – let me unpack the chart* I chose for the image for this article. It shows that:

• in 2019 Australia enrolled 952,379 international students
• numbers fell during COVID and then,
• in 2023 we welcomed slightly more students than 2019: a total of 975,229 or just 2% more.

Enrolments were not evenly dispersed across the different education sub-sectors:

• schools and non-award enrolments are down between -33% and -38%
• university enrolments have almost recovered (down -1%)
• English language enrolments have recovered (up 2% on 2019), and
• all the growth has been in the VET sector (up 17% on 2019 enrolments).

Within the VET sector the data shows that:

• TAFE enrolments have declined (-32% between 2019 and 2023) to just 11,157 at the end of 2023, and
• private VET enrolments increased 20% to 316,852 students at the end of the 2023.

Two weeks ago I questioned ‘what might have been in international education‘ if the government had proceeded solely or predominantly with the recommendations of the ‘Nixon Review’?

It would have meant a strong targeted response focussed on the specific private VET providers misusing the migration system to enrol non-genuine students and inflate their profits.

It would also have meant much less of a need to introduce reforms which target all international education providers and all students.

Headlines in the last two weeks might indicate that the ‘crackdown’ is underway.

Last week ASQA released the following details on the providers they have taken serious action against since the start of the financial year:

Note that in their statement, there are no details on how many of these providers have CRICOS-approval (ie are allowed to educate international students).

The report available from the training.gov.au website (the national training database which records all regulatory decisions about all RTOs) shows that there were just 4 RTOs which had their registration cancelled between 1 July 2023 and 31 March 2024:

• Total Business Services & Training Pty Ltd (RTO ID 22341) – their website is no longer operable, an internet search indicates the RTO appears to have had a domestic student focus
• United POP Australia Pty Ltd (RTO ID 45474) – the Tuition Protection Service website states that this provider entered voluntary administration in November 2023 and educated international students
• Melbourne Building Academy Pty Ltd (RTO ID 45721). They were first registered in 2012. Their website is no longer operable and it is unclear if they had CRICOS approval.
• OHS Media Services Pty Ltd (RTO ID 110071) – the TPS website indicates that this provider entered voluntary administration in July 2023 and educated international students.

The same report indicates there are a further 4 RTOs with their registration currently suspended. None show as having CRICOS-approval (noting that the CRICOS website only provides details on ‘currently approved’ providers and not on those which may have previously have had CRICOS approval):

• Flexible Business Learning Pty Ltd (RTO ID 40945) – their website is no longer operable, an internet search indicates the RTO appears to have had more of a domestic student focus, rather than on international students
• Ambition Training Institute Pty Ltd (RTO ID 40721) – was first suspended by ASQA in 2020. Their website is also no longer operable but an internet search indicates they appear to have educated international students
• Australian Technology and Innovation College Pty Ltd (RTO ID 45305). Their website is no longer operable but an internet search indicates they appear to have educated international students
• Bedford Phoenix Incorporated (RTO ID 40245) – appears to have been focussed on domestic students.

To be clear:

• I do not doubt the accuracy of the data ASQA published in their April newsletter – but the sector urgently needs more details in their next newsletter on which RTOs they are taking action against and how many of them are CRICOS-approved.
• There are clearly problems with the way data is being recorded and published in the national training database (www.training.gov.au) and this needs to be urgently addressed.

(If I have any details wrong on the RTOs listed above please contact me directly and I will amend immediately.)

While we wait for more details from ASQA on the providers they are taking action against, the Department of Home Affairs has issued “a first tranche of warning letters… to 34 education providers for non-genuine or exploitative recruitment practices.”

The Minister’s media release goes on to explain that “These warning letters make clear that providers will have six months to significantly improve their behaviour, or risk being issued with suspension certificates. This would ban these providers from recruiting more international students, with breaches of these actions punishable by up to two years imprisonment.”

This action, focussed on a group of providers the government has concerns about, is to be applauded (assuming it is well targeted). And it also follows Christine’s Nixon’s recommendations.

And so to the bad news – impacting all providers and all students…

Effective Friday 10 May 2024 (and announced today, Wednesday 8 May) the government is increasing the amount of funds students will have to hold to apply for a student visa (the financial capacity requirement).

The amount of funds required will rise from the current $24,505 to $29,710 to bring it more into line with the minimum wage (this figure represents 75% of the minimum wage).

While it is appropriate that the government ensures students have sufficient funds to support themselves while they are in Australia, we need to keep in mind that students are also permitted to work part-time during term-time and full-time during semester breaks while studying – making comparisons with the minimum wage somewhat tenuous.

The change in just one year from $24,505 to $29,710 represents a 20% increase, far above the latest annual CPI increase of 3.2%.

It has led one informed commentator, Dr Abul Rizvi, to state that

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*Data source: https://www.education.gov.au/international-education-data-and-research/international-student-monthly-summary-and-data-tables