Student Visa Mills Run Rampant in Australia, Prompting New Reforms

(AUSTRALIA) Student visa mills are again under the spotlight in Australia, as the federal government rolls out a fresh wave of visa rule changes aimed at shutting down low‑quality colleges that exist mainly to sell access to unlimited work rights rather than real education. Officials say the reforms, which start from 1 January 2025, will tighten entry for new international students and push out long‑running abuses that have rocked the vocational training sector.

The main concern is a cluster of private vocational colleges that recruit large numbers of South Asian students on cheap courses, while quietly marketing the right to work as the real attraction. According to analysis reported by VisaVerge.com, regulators have watched these student visa mills grow over several years, even as warnings piled up about weak quality controls and rising visa fraud.

Background: how the problem developed

In 2022, former vocational training regulator Claire Field warned that many students from India, Nepal, Pakistan and other parts of South Asia were enrolling in low‑grade colleges with little interest in the classroom. She said that several providers had effectively become student visa mills, built on promises of easy entry to Australia and long hours in the labour market.

Her alarm came after the former Morrison government removed caps on working hours for student visa holders during the post‑pandemic recovery. The change was meant to deal with staff shortages in sectors like care, retail and hospitality, but it also turned the visa into a simple entry ticket to the jobs market for many people who barely attended class.

At the same time, post‑study work rights for vocational graduates were extended, further boosting the draw of cheap training courses over more demanding, higher‑education options.

Key 2025 changes and immediate effects

From 1 January 2025, all people already in Australia on temporary visas who want to lodge a new student visa must provide a Confirmation of Enrolment (CoE) with their application. This closes a loophole that allowed some applicants to file onshore with weak or even false paperwork, then shop around between providers once the visa was granted.

Immigration officers will also be able to cancel visas linked to so‑called “ghost colleges” — private schools that kept their registration but barely ran any classes. Several of these colleges are known to have targeted South Asian students with promises of quick enrolment and near unlimited work rights under past rules.

Ministerial Direction 115 (MD 115)

A new policy, Ministerial Direction 115 (MD 115), took effect on 14 November 2025 and sets out how Home Affairs will decide which student visas are processed first.

• Colleges that do not meet quality benchmarks or that exceed their enrolment caps face slower visa decisions for their students.
• Trusted universities and public institutes move to the front of the queue.

The goal is to reward strong performance and squeeze the business model of student visa mills that rely on fast‑tracked visas and weak checks. Officials say MD 115 is part of a wider attempt to bring the program back to its proper purpose: attracting genuine students who want to gain skills and, in time, move into long‑term skilled roles.

According to the Department of Home Affairs, more than 700,000 people now hold Australian student visas — a record high that has added pressure on housing, transport and public services in major cities.

Abuse and exploitation: problems found by regulators

Those numbers have also drawn new attention to the darker side of the international education boom.

• Education agents and small private colleges have been accused of steering students into thin courses while taking large fees.
• Regulators report contract cheating, where students pay others to complete assignments.
• Forged transcripts have been used to support further visa applications.

In the workplace, some international students have faced:

• Wage theft
• Unsafe conditions
• Threats from employers who know visa status limits the students’ power to complain

Advocates say the promise of easy access to long working hours can push young people into taking risky jobs, especially when families have borrowed heavily to pay tuition in Australia.

Government response: rules and public messaging

The federal government has tried to match tougher rules with more public information.

• Official advice now warns students that the main purpose of the visa is study, not work.
• Students are told that poor attendance or false documents can lead to visa refusal or cancellation.

The Department of Home Affairs student visa page for subclass 500, available on its website at immi.homeaffairs.gov.au, sets out the conditions in plain terms, including rules on work hours during term time and in holiday periods.

International students are told they must be able to support themselves without relying only on part‑time work — a direct rebuttal of the sales pitch from student visa mills that focus almost entirely on job prospects.

Planning levels and future reforms

Alongside the 2025 measures, the government has announced a student visa planning level of 295,000 places for the year. Officials argue that this cap still allows strong numbers of genuine students while giving space to lift quality checks on both applicants and education providers.

Looking ahead to 2026, ministers have flagged plans for:

• Stricter English language rules
• Tougher financial tests
• More scrutiny of providers that depend heavily on South Asian students but show weak course outcomes

The aim is to raise academic standards without shutting the door on the many young people from the region who want serious training and a clear path into skilled work in Australia.

Impact on students and legitimate providers

For students already in the country, the shifting rules have added uncertainty.

• Some who entered when work limits were lifted are now adjusting to stricter caps and closer attendance checks.
• Others have been left stranded when “ghost colleges” shut down, forcing a quick search for new courses to keep visa status safe.

Community groups say South Asian students, especially those in regional areas, often lack clear advice and can be slow to seek help when things go wrong.

Education providers that follow the rules worry they are being dragged into the backlash against student visa mills. Universities and public TAFEs argue:

• Most of their international students attend class, pay full fees, and go on to skilled roles or further study.
• Sudden swings in visa policy can damage Australia’s reputation and push students to rivals such as Canada 🇨🇦 and the United States 🇺🇸.

Government case for reform and the road ahead

For now, the government insists that cleaning up the sector is worth the short‑term risk. Ministers point to years of reports about fraud, exploitation and the spread of student visa mills as proof that light‑touch rules do not work.

They argue a more controlled program will still bring future skilled workers to Australia, but in a way that does not reward sham colleges or employers who underpay international students.

The coming year will test whether the new rules can really stop abuse while keeping Australia attractive to bright students from South Asia and beyond.

With further reforms set for 2026, the system is likely to stay in flux. Both students and colleges will have to watch closely as Canberra reshapes how international education fits into the wider migration program.

For families deciding whether to send a child abroad, the message from Australia is now mixed: genuine students are welcome, but those drawn mainly by the hope of unlimited work rights and easy migration dreams are fading fast.