Australia Shuts Down 8 Colleges, Thousands Lose Diplomas in Fake Qualification Scandal

Australia’s closure of eight colleges and cancellation of 25,000 diplomas exposed misuse of student visas and fake qualifications. ASQA continues probing 189 cases with AU$4.7 million funding. These actions protect public safety and vocational education integrity amid worker shortages and migration challenges.

VisaVerge.com
Key takeaways

Australian government shut eight colleges and cancelled 25,000 qualifications from 23,000 students (2023-2025).
ASQA investigation found diplomas issued without training; students lost visas and work eligibility in key sectors.
AU$4.7 million funding set for ongoing ASQA investigations with 189 cases still under review through 2026.

(AUSTRALIA) The Australian government has shut down eight vocational colleges and cancelled about 25,000 qualifications after uncovering a fake qualification scandal that affected around 23,000 students, many of whom are international. The Australian Skills Quality Authority (ASQA) led this crackdown, which began in 2023 and reached a peak in August 2025, targeting colleges that failed to meet national standards. The most recent closure was Arizona College, which lost its license in July 2025.

This action follows a detailed investigation into colleges issuing diplomas without proper training or assessment. ASQA found that these colleges, including Learning Options, SPES Education, Nextgen Tech Institute, Australia Education & Career College (also called Luvium), International Institute of Education and Training (IIET), Gills College, and DSA College, did not meet the required standards. As a result, all diplomas issued by these schools between 2023 and 2025 are now invalid.

Australia Shuts Down 8 Colleges, Thousands Lose Diplomas in Fake Qualification Scandal
Australia Shuts Down 8 Colleges, Thousands Lose Diplomas in Fake Qualification Scandal

Impact on Students and Sectors

Most of the affected students were enrolled in high-demand areas such as aged care, childcare, social work, automotive repair, and IT. Many of these students came from overseas, hoping to use their qualifications for skilled migration or to work in regulated sectors in Australia 🇦🇺. Now, with their diplomas cancelled, they have lost the ability to work in these fields or apply for certain visas.

The government made this decision to protect public safety. Many students who received fake diplomas may have been working with vulnerable people, such as the elderly or children, without the right training. According to analysis by VisaVerge.com, this move aims to restore trust in Australia’s vocational education system and prevent unqualified workers from entering important sectors.

💡 Tip
If you received a notice about your diploma being invalid, act quickly. Check the ASQA website for updates and follow their instructions to appeal or seek support.

How the Fake Qualification Scandal Unfolded

ASQA’s investigation revealed that some colleges issued diplomas without proper classes, tests, or assessments. In some cases, students paid for a diploma but did not attend any real training. When the government notified affected students and gave them a chance to prove their studies were real, none could provide enough evidence.

ASQA is still investigating 189 cases across 154 schools, with more than half involving international students. The government has set aside AU$4.7 million (about US$3 million) for ASQA to continue these investigations through 2026.


What Happens to Affected Students?

Students whose qualifications were cancelled received official notices. They were invited to show proof that their studies were real, but none succeeded. Many students may not even know their diplomas are now invalid, as notifications are still being sent out.

⚠️ Important
Be cautious of any new educational institutions promising quick qualifications. Verify their accreditation with ASQA to avoid falling victim to future scams.

Here’s what affected students need to know:

  • 📋 Diplomas issued between 2023 and 2025 by the eight closed colleges are no longer valid.
  • 📋 Students who received a notice should check the ASQA website for updates, factsheets, and support services: ASQA official website
  • 📋 ASQA has published factsheets with instructions for next steps and how to appeal if students believe their case is different.
  • 📋 Students from Luvium (Australia Education & Career College) have special guidance available on the ASQA website.

Wider Effects on Australia’s Education and Migration System

The fake qualification scandal has put a spotlight on Australia’s student visa system. There are concerns that criminal networks have used loopholes to bring “fake students” into the country, not for study, but to work. As of early 2025, there are about 263,000 international vocational students in Australia 🇦🇺. The government also estimates that 70,000 foreigners are living in the country illegally, many on expired student or tourist visas.

This crackdown has made it harder for students to trust the system. Employers and migration agents are also worried about the reliability of vocational qualifications. Some sectors, like aged care and childcare, already face worker shortages. Now, with thousands of diplomas cancelled, these shortages could get worse.

📝 Note
Stay informed about the ongoing investigations and reforms in Australia’s vocational education sector by regularly checking official resources like the ASQA website.

Expert and Stakeholder Reactions

Claire Field, a former regulator in the vocational education sector, called the government’s move “unprecedented.” She said it was necessary to protect public safety but also showed that the system failed to stop fake qualifications from being issued in the first place.

ASQA and the Department of Education have both said that stricter rules and more checks are needed. They are working to restore trust in the vocational education sector and make sure only qualified students get diplomas.


Background and Ongoing Investigations

This is not the first time Australia 🇦🇺 has faced problems with fake qualifications. In 2023, former Victoria police chief Christine Nixon led an investigation that found criminal groups were using the visa system to bring in people who did not intend to study. About 15% of international vocational students had dropped out but stayed in the country to work.

The government’s new funding for ASQA and ongoing investigations show that they are serious about fixing these problems. More changes to rules and checks are expected in the coming months. The government is reviewing both current education providers and the student visa system to stop future abuse.


What Should Affected Students Do Now?

If you are a student whose diploma was cancelled, here are some steps you can take:

  1. Check your email and mail for official notices from ASQA or your college.
  2. Visit the ASQA website for the latest updates, factsheets, and contact details for support.
  3. If you believe your case is different, follow the instructions in the factsheet to appeal or ask for a review.
  4. Contact ASQA directly if you need help or have questions about your situation.

Official Resources


Looking Ahead

The fake qualification scandal has caused major changes in Australia’s vocational education sector. The government’s actions show a strong commitment to public safety and restoring trust. However, thousands of students, especially those from overseas, now face big challenges. They must find new ways to get valid qualifications or change their plans for work and migration.

Employers and the wider community are also affected. They must be careful when checking job applicants’ qualifications and may need to fill gaps left by the loss of workers in key sectors.

As the government continues its investigations and reforms, more updates are expected. Students, employers, and migration agents should stay informed by checking official sources like the ASQA website.


In summary, the fake qualification scandal has led to the closure of eight colleges, the cancellation of tens of thousands of diplomas, and a major review of Australia’s vocational education and migration systems. The government’s ongoing work aims to protect public safety and restore confidence in the sector, but the effects will be felt for years to come.

VisaVerge.com
Learn Today

Australian Skills Quality Authority (ASQA) → Government body regulating vocational education quality and investigating fake diplomas in Australia.
Vocational Colleges → Educational institutions offering practical training and qualifications for specific trades or professions.
Diploma Mills → Colleges issuing diplomas without valid training, classes, or assessments, often illegally.
Skilled Migration → Visa program allowing qualified workers to immigrate based on occupational skills and qualifications.
Student Visa System → Government process for granting visas to international students to study in Australia.

This Article in a Nutshell

Australia closed eight fake diploma colleges, cancelling 25,000 qualifications affecting 23,000 students. ASQA’s crackdown protects public safety, focusing on vocational education integrity and restoring trust amid migration visa concerns and sector worker shortages.
— By VisaVerge.com
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Robert Pyne
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Robert Pyne, a Professional Writer at VisaVerge.com, brings a wealth of knowledge and a unique storytelling ability to the team. Specializing in long-form articles and in-depth analyses, Robert's writing offers comprehensive insights into various aspects of immigration and global travel. His work not only informs but also engages readers, providing them with a deeper understanding of the topics that matter most in the world of travel and immigration.
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