Over 150 ‘Ghost’ Colleges Deregistered as Part of VET Sector Clean Up

International students wait for the world record attempt for an English lesson to start at Bondi Beach in Sydney, Australia, on Feb. 12, 2016 AAP Image/David Moir

A review of registered Vocational Education and Training (VET) providers has discovered more than 150 that were no longer operating but could, in theory, have been eligible for government funds.

The clean-up is part of the Albanese government’s effort to improve integrity in the international education sector, which included “serious instances of exploitation of overseas students” up to and including human trafficking, a recent Policy Impact Analysis (pdf) said.

Problems in the sector have been evident since at least 2018 when the Braithwaite Review reported on “seriously unscrupulous behaviour resulting in significant harm being done not only to the sector’s reputation but to the wellbeing—financial and emotional—of a significant cohort of students.”

‘No Place for Rorts’: Minister

Two further reviews followed in 2023: a “rapid review” by former Chief Commissioner of Victoria Police Christine Nixon and an interim report from Parliament’s Joint Standing Committee on Foreign Affairs, Defence and Trade, which examined the tourism and international education sectors.

These “confirmed that the former Liberal and National Government turned a blind eye, finding that a lack of integrity in the system had grown even further under their watch,” Minister for Skills and Training Andrew Giles said today.

“The Albanese government is calling time on the rorts and loopholes that have plagued the VET sector for far too long,“ he said. ”Under our government, there is no place for anyone who seeks to undermine the sector and exploit students.”

The Registered Training Organisations (RTOs) shut down by the current review were deemed “dormant” because they failed to show proof of delivering training for 12 months or more.

Another 140 RTOs are being monitored by the Australian Skills Quality Authority (ASQA) and have received a warning notice. They must resume quality training by the end of 2024, or they will also be deregistered.

The measures came into effect under the National Vocational Education and Training Regulator Amendment passed by Parliament earlier this year.

Before the COVID-19 pandemic, international students contributed almost $40 billion (US$27 billion) in export value, making the provision of education Australia’s largest services export.

Of that figure, $16 billion was fees paid to RTOs, with the remaining $24 billion (or 60 percent) directed to other areas of the economy, including flows to local businesses through spending on accommodation, transport, retail, food, and other costs.

Australia's major exports with data from the Australian Department of Education. Rex Widerstrom/The Epoch Times

Earlier this year, the number of international students in Australia topped 700,000 for the first time, with the most significant number (just over 153,000) from China.

However, overall revenue remained just below pre-COVID levels at $36.4 billion.

With so much at stake, ensuring the international reputation of Australia’s education system remains positive is a major priority for the government.

About $37 million is being spent on VET integrity initiatives to support the sustainability, quality, and integrity of the international education and training sector.