Cassandra Fernando (Holt, Australian Labor Party) Share this | Hansard source

I rise to speak on the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024. Australia has one of the best higher education systems in the world. International education is a vital part of supporting the system and spreading innovation. International education is one of Australia's largest exports, adding $48 billion to the economy. This is only outstripped by our exports in coal, iron and gas. It serves as a crucial pillar of our economy and society, offering huge benefits, not only in economic terms but also in the cultural and social dimensions. It's important from a geopolitical perspective and it makes us friends all over the world.

International education is more than just a significant economic driver; it is also our largest source of permanent migration. Students who come to Australia for their degrees and who learn about our culture and do internships in our companies often choose to stay. They seek work and contribute to our nation afterwards. Their presence enriches our communities and enhances our global connections, fostering a multicultural environment that benefits all Australians.

Given the high value of international students to our economy and society, it is paramount that we protect them from exploitation. Unfortunately, international students are often targeted by unscrupulous education agents and fraudulent institutions who sell education as a way to get work rights in Australia or who do not deliver on the programs they promised. These bad actors tarnish our reputation and undermine the integrity of our education system. Through the work of the National Union of Students, the Council of International Students Australia and other advocates, we know about these issues, and to address them we are now introducing the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024.

This bill is a significant step in ensuring the continued excellence and integrity of Australia's international education sector. The Education Services for Overseas Students Act—or ESOS—first introduced in 2000, has already opened the doors for more than four million students to study at our higher education institutions. It provides the regulatory framework for the sector, outlining the responsibilities of institutions and agents, ensuring that Australian education maintains its world-class reputation. We are now strengthening the government's power under this act to ensure students are not exploited.

Education agents, often operating overseas, are tasked with promoting Australian education and assisting students in applying for our programs. However, with minimal oversight and a commission-based payment model, these agents are often rife with abuse. To tackle these issues we are implementing several new measures to prevent collusion between universities and education agents. Both these entities profit from enrolling more students, creating a potential conflict of interest that can lead to dishonest practices. We are introducing new registration requirements for education agents to ensure only those with a proven commitment to ethical practices can operate. This includes strengthening the 'fit and proper' requirement, increasing scrutiny of cross-ownership between education agents and providers to prevent deceitful behaviours.

Last year we closed the concurrent enrolment loophole which allowed agents and providers to shift international students to cheaper, less rigorous courses within six months of their arrival. This was in response to the rise of ghost colleges where students would shift enrolment to keep work rights and not have any intention of studying. In this bill, we are prohibiting agents accepting commissions for transferring students between institutions once they are in Australia. This practice often leads to students being shifted from their original courses to cheaper, less-rigorous courses, purely for financial gain. These ghost colleges, often hidden within offices in the CBD, claim to offer education to thousands of international students. However, investigators revealed that many of these classrooms remained empty, with students nowhere to be found. These colleges exist to exploit loopholes to profit from students who are mainly seeking work opportunities, rather than genuine education. By banning commissions we are removing one of the incentives for agents to transfer students to these colleges.

Transparency and accountability are crucial to maintaining the high standards of our education system. By fostering an environment where information is openly shared and accessible, we can uphold the integrity that makes Australian education globally respected. The bill requires providers—on request—to report education agent commissions. This measure aims to eliminate any hidden incentives that might encourage dodgy behaviour, thereby protecting students from being exploited by agents who prioritise profit over education. Furthermore, this bill empowers regulators to share performance data about education agents with providers. This provision is pivotal in creating a system where education providers can access comprehensive data about the agents they are working with. By having detailed insight into the performance and practices of education agents, providers can make better informed decisions about their partnerships. These measures collectively ensure that all stakeholders in the education sector adhere to the highest standards of integrity and quality. By embedding transparency and accountability into the system, we safeguard the interests of students, uphold the reputation of our education providers and reinforce Australia's standing as a leader in international education.

Post COVID, around the world, there has been a rebound in international students. In 2019, prior to the pandemic, 636,000 students chose to study in Australia, and today that number is 740,000, with a 21 per cent increase on March from last year. It also means that over one-quarter of all students at Australian universities are from overseas, with up to 80 per cent in some courses. To ensure the sector grows in a sustainable manner, we are placing limits on international student enrolments. These limits will help manage the growth of the sector, ensuring that it does not expand beyond our capacity to maintain high standards of education and student welfare. The bill grants the Minister for Education new powers to manage enrolments effectively, providing a structured approach to controlling the flow of international students.

Australia's high wages relative to the cost of living have traditionally been a significant drawback for international students. The prospect of earning a competitive salary while enjoying a relatively affordable lifestyle has been a compelling factor in choosing Australia as a study destination. However, the housing crisis is increasingly undermining this attraction. Rising property prices and rental costs, particularly in major cities, have created significant challenges for students in finding affordable and safe accommodation. At the moment, universities have no requirement to consider international students' housing needs. They can enrol them, bring them onshore and take their fees with no duty of care regarding their living conditions. This lack of responsibility has heightened the housing issues faced by these students, leaving many in vulnerable situations.

The current housing affordability crisis has resulted in a distressing reality for some international students who are forced to reside in unsafe and overcrowded accommodations. Desperate to find affordable options, students often find themselves living in substandard conditions with multiple individuals crammed into a single bedroom. This situation not only compromises their safety, privacy and overall wellbeing but also hampers their ability to focus on their studies and enjoy a positive student experience.

In response to these challenges, the minister will be able to set enrolment limits based on a range of factors, including considering Australia's skills needs and the availability of student accommodation. Universities will be able to increase these limits by building more student accommodations. These limits will be implemented following consultations with the sector and will come into effect from 2025. By carefully regulating the number of international students, we can ensure that we do not overwhelm our housing market or educational institutions, thereby protecting the quality of education and the overall student experience.

The bill will also allow the minister to limit or cancel courses enrolling international students that have persistent quality issues or provide limited value to Australia's skills needs. By doing so, we can better allocate our resources to support areas that are crucial to our country's growth and sustainability. This builds on our government's previous work in strengthening the quality and integrity of our higher education system. In October, we boasted the capacity of the National Vocational Education and Training Regulator by establishing an integrity unit to oversee the sector and ensure compliance with high standards. In March, we increased the English-language requirement for international students, ensuring they have the skills needed to succeed.

We also introduced a new genuine student requirement to ensure students' true intention to come to Australia is to study, while recognising that they may want to stay and contribute to our nation after their degree. We also increased the number of no-further-stay conditions to prevent visa overstays. These measures, combined with the new enrolment limits and enhanced transparency provisions, ensure the growth of our international education sector while maintaining Australia's reputation as a global leader in education.

The Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 is a crucial step in safeguarding the integrity and quality of Australia's international education sector. It addresses the challenges poses by dodgy education agents who have exploited students for far too long and ensures that international students receive the high-quality education they expect and deserve. By strengthening oversight, enhancing transparency and ensuring sustainable growth, this bill protects our reputation as a leading destination for international students. It supports the economic and social contributions of international students to our nation while fostering a positive and enriching experience for students from all over the world.

I thank the Minister for Education, Jason Clare, for his work on these reforms. I commend the bill to the House and urge all members to support its passage. Together, we can ensure that Australia remains a top destination for international students.

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