Australia Tightens Agent Commissions as UK Faces Student Decline

Governments in key English-speaking destinations continue to reshape the rules of international education, with Australia curbing onshore recruitment while the UK records a second consecutive year of falling enrolments.

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Australia and UK International Education Changes
Major policy changes reshape international education in Australia and the UK

Australia Bans Commissions for Onshore Student Transfers

1 April 2026
Australian education providers will be prohibited from paying commissions to education agents for recruiting students who have already commenced study with another institution.

The change is enshrined in the National Code of Practice for Providers of Education and Training to Overseas Students Amendment (Education Agent Commissions) Instrument 2026, which formally outlaws commission payments linked to mid-course transfers between providers.

The government has signalled that this measure is part of a broader integrity agenda aimed at:

  • Reducing "poaching" of students
  • Curbing agent-driven course switching
  • Strengthening oversight of recruitment practices

When Commissions May Still Be Paid

  • When a student progresses to another course with the same provider listed on their original Confirmation of Enrolment (CoE)
  • When a student moves to a different provider after completing their principal course of study
Industry reactions have been mixed. Some providers argue that the reform lacks flexibility and fails to account for legitimate cases such as school closures, course discontinuations, or situations where students genuinely need to change institutions.

Others, including representative bodies in key sending markets such as India, have welcomed the ban as a necessary step toward cleaner recruitment practices and stronger consumer protection for students.

UK: International Student Numbers Fall Again in 2024/25

While Australia tightens recruitment rules, the UK is grappling with declining international enrolments.

685,565
International students enrolled in UK higher education
A 6% drop from the previous year - the second consecutive annual decline

The downturn was driven largely by:

-15.6%
EU students (now international fee payers since Brexit)
-5%
Non-EU students (tighter visa policies)

First-Year Students Particularly Affected

-5.5%
First-year non-EU students
-4.1%
First-year EU students
-8.1%
Postgraduate taught enrolments

Where Students Are Coming From

Major Source Markets

🇮🇳 India (largest market) -11.9%
🇨🇳 China -4.5%
🇳🇬 Nigeria (steepest fall) -33.8%
🇳🇵 Nepal (bucking the trend) +92%

Regional Impact

Wales
-24.7%
England
-5.5%
Scotland
-5.5%
Northern Ireland
Growth

What This Means for the Sector

These developments point to a shifting landscape:

🇦🇺
Australia
Prioritising integrity over volume

Tightening the role of agents and discouraging mid-course transfers as part of broader compliance and oversight reforms.

🇬🇧
United Kingdom
Facing structural headwinds

Policy changes, cost pressures, and visa restrictions continue to impact enrolments - even as recent visa data suggests a possible short-term recovery in 2025/26.

Looking Ahead: UK Demand Could Be Further Affected By

  • Reduction in the Graduate Route from two years to 18 months (from 2027)
  • Planned introduction of an International Student Levy from 2028/29

The Broader Pattern

Major study destinations are recalibrating their international education models, balancing economic benefits with regulatory control, student protection, and political pressures.

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