Starkly missing from the government's first-ever round table discussion on international education last week was the issue of the regulation of education brokers. It continues to ignore warnings by the Productivity Commission that Australian institutions should reduce their reliance on agents for student recruitment.

The promotion of international education is high on the government’s agenda given that education has become the standout performer among Australia’s top export industries. With some 600, 000 students currently enrolled, it now earns $17.5 billion a year and is Australia’s third-largest export, even ahead of tourism. It is now moving into a strong growth phase, up 11.2 per cent from last year.

To help manage the growth, the government’s round table gathered about 100 representatives of the industry including education and training providers, businesses, students, community groups and all levels of government “to exchange new ideas and innovative approaches that will help make Australian international education the best in the world.”

However, according to a report in the Australian Financial Review, the round table failed to address one key issue highlighted in The Productivity Commision’s report on International Education Services: education agents.

The Commission’s report released in April this year, questioned the very extensive use of education agents by Australian universities and colleges to recruit international students.

The Commission stated that it received "considerable anecdotal evidence that suggested unscrupulous behaviour of agents is an issue, particularly in relation to providing false or misleading advice and information, and the onshore poaching of international students. Many of these concerns were also highlighted by the NSW Independent Commission Against Corruption in its recent report."

The Commission also suggested that these agents may be undermining the Streamlined Visa Program as it had anecdotal reports of agents being openly and actively involved in encouraging course-hopping by recruiting students already studying in Australia for transfers to cheaper, shorter or lower quality courses.

The report said that commissions paid on a per student basis on admission create incentives for agents to maximise the volume of international students, with little regard to the quality of the advice provided to students (affecting student expectations) or the quality and aptitude of the students.

Currently, Australia does not regulate education agents directly. At a national level, the National Code of Practice, established under the Education Services for Overseas Students Act 2000 (Cwlth) sets out a range of specifications on the relationship Currently, Australia does not regulate education agents directly.

Registered Migration Agents, remain the only formally regulated advisers.