Australia’s international education sector is widely recognised for its quality. Much of that success comes from the regulations designed to protect overseas students.
For example, the Education Services for Overseas Students (ESOS) framework helps to ensure consistently high-quality education across the country. It also boosts Australian international education. This attracts overseas students and contributes towards our strong reputation.
In this article, we explore:
- What ESOS is
- How it differs from CRICOS and ELICOS
- Legal and compliance requirements detailed in the ESOS Act
- Upcoming changes to the ESOS framework
- Tips for maintaining compliance
- Challenges for registered training providers and how to overcome them
- Answers to frequently asked questions about the ESOS Act
What is ESOS?
ESOS is a legislative framework that sets out the standards educational providers must meet. It also governs how they deliver training and assessment to international learners.
All providers who offer training to learners from outside of Australia must comply with the ESOS Act. This includes vocational education and training (VET) providers, higher education providers and schools. Each of these organisations will have a different governing body, or ESOS agent, they must report to.
- Australian Skills Quality Authority (ASQA) regulates VET providers.
- Tertiary Education Quality and Standards Agency (TEQSA) regulates higher education providers.
- A State or Territory’s Designated State Authority (DSA) and the Federal Department of Education regulate schools.
What is the Difference Between ESOS, CRICOS and ELICOS?
The ESOS Framework provides the standards and compliance requirements that training organisations need to meet.
CRICOS is the Commonwealth Register of Institutions and Courses for Overseas Students. It lists training providers that comply with the ESOS Act and the courses that they offer to international learners.
ELICOS stands for English Language Intensive Courses for Overseas Students. ELICOS courses can only be offered by providers that meet ESOS requirements and are registered on CRICOS.
What Are The ESOS Legal and Compliance Requirements?
Obligations on Registered Providers
Education providers must always act honestly and transparently. This is especially important when delivering training to international students. It protects them from false promises or unfair treatment. It also creates trust between providers, students, and regulators.
The ESOS Act describes the conduct, reporting, and financial management requirements that training providers must follow. These measures ensure accountability and safeguard students’ rights and funds. These obligations include:
- Not engaging in deceptive or misleading conduct
- Informing the ESOS agency about offences, ownership changes, and agent details
- Providing the ESOS agency with student details within a defined timeframe
- Maintaining accurate student records
- Paying annual CRICOS and Tuition Protection Service (TPS) levies
- Holding tuition fees in secure accounts
The National Code
Training providers across Australia need to follow consistent rules. This gives international students confidence in their education. It assures them that they can expect a high-quality learning experience no matter which institution they attend.
The National Code of Practice outlines clear standards for providers and those delivering training on their behalf. This code was created by the Minister of Education, and following it is a condition of ESOS registration. The requirements that it covers include:
- Accurate marketing
- Responsible recruitment
- Maintaining clear written agreements
- Ethical agent management
- Welfare for students under 18
- Student support
- Student transfers
- Student visa compliance
- Enrolment change processes
- Complaints and appeals processes
- Registration requirements
Tuition Protection Service
Training students doesn’t always go as smoothly as expected. Courses may not always start on time, or may need to stop before a student has completed them. When this happens, it’s essential that international students aren’t left without support or recourse.
The Tuition Protection Service (TPS) protects students by guaranteeing refunds or placement in another suitable course. The ESOS Act explains training providers’ responsibilities in ensuring this occurs. These include:
- Notifying the ESOS agency and the TPS Director within three business days of a default
- Notifying affected students and clearly explaining the situation
- Placing students in an alternative course or providing a refund within fourteen days
Overseas Students Tuition Fund
Sometimes, training providers close or can’t continue delivering courses. This often means they aren’t able to meet their responsibilities under the TPS. To address this problem, the Overseas Students Tuition Fund (OSTF) was created as a secure, central financial safeguard.
The ESOS Act provides details on how the OSTF is managed and funded across the Australian education sector. It explains the roles of the TPS Director and the TPS Advisory Board and their responsibilities. These include:
- Managing the Overseas Students Tuition Fund
- Calculating and issuing TPS levy notices to providers
- Processes for using the OSTF to pay student refunds or alternative course providers
- Providing advice on fund management and policy
- Ensuring tuition protection functions are carried out
Implementing Conditions, Suspension, and Cancellation
When providers fail to meet their obligations, regulators must act quickly. They need to protect international students and maintain trust in the sector. This ensures that training remains compliant, stable, and accountable. It also protects learners from high-risk providers.
The ESOS Act provides guidelines for regulators to respond when providers breach the Act or the National Code. Key actions can include:
- Imposing conditions on registration
- Suspending registration
- Cancelling registration
- Responding to behaviour that threatens student welfare or tuition protection
Monitoring and Enforcement
ESOS agents are responsible for investigating student concerns. They also ensure providers are meeting compliance obligations. This helps to stop minor issues from escalating into serious risks. It also ensures that student welfare is a top priority for training providers and regulators alike.
The ESOS Act details authorised officers’ responsibilities in monitoring providers and enforcing compliance. This ensures that ESOS agents and regulators can act quickly when a breach is reported. Key actions include:
- Monitoring provider compliance with the ESOS Act and the National Code
- Conducting inspections and investigations through authorised officers
- Entering premises to check records or verify training activities
- Requesting documents, information, or evidence from providers
- Taking enforcement action when non-compliance is identified
Review of Decisions
It’s essential that decisions and processes that relate to a provider’s registration are fair and transparent. Providers need a way to challenge decisions that impact their operations. This helps maintain trust in the regulatory system. It also ensures that actions taken under the ESOS Act are balanced and justified.
The ESOS Act outlines providers’ rights when it comes to reviewing and escalating regulatory decisions. It details the processes for:
- Applying for internal reviews
- Appealing to the Administrative Review Tribunal following internal review
- Receiving written notice of review rights when a decision is made
- Accessing reviews for decisions about conditions, suspension, cancellation, and TPS matters
Upcoming ESOS Updates
The Australian Government has signalled major reforms are planned for the ESOS Act in the coming years. These performance- and integrity-focused changes intend to modernise the international education sector. While these updates are not yet enforced, training providers should start preparing for them. This is because they will impact delivery for international learners. Three key areas of change include:
- Enrolment Caps. These will limit the number of overseas student commencements by provider, course, or location. They aim to protect training quality and infrastructure.
- Enhanced Compliance Standards. These will strengthen the compliance obligations that training providers must meet. They aim to introduce stricter fit-and-proper person tests, increased reporting duties, and tighter oversight of agent activity.
- Combatting Exploitative Practices. These upcoming reforms will target behaviours that place international students at risk. They aim to reduce unethical recruitment practices and limit the misuse of student visas. They will also strengthen students’ protection against non-compliant providers.
Tips for Staying ESOS Compliant
1. Keep Students Informed
International students studying with you also have obligations that they need to meet. These may include student visa conditions, academic requirements and attendance expectations. Make sure they understand these before their training begins. Clear communication early on helps students stay compliant and avoid issues later.
2. Train Your Staff
Understanding ESOS obligations helps your team support overseas students confidently. Invest in continuous professional development for your team. This will help them meet ESOS requirements, while also boosting their workplace skills. It will also keep them up-to-date on any reporting rules, student visa requirements, and National Code standards.
3. Find the Right Technology
The right tools make ESOS compliance easier and help your team stay organised. They also reduce manual errors and ensure you meet reporting and record-keeping requirements. Some examples include:
- An Learning Management System for training overseas students, which supports delivery, attendance, and progress tracking
- A Student Management System that supports PRISMS (Provider Registration and International Student Management System) reporting requirements
- A document management system keeps records organised and easy to access
- A certification management tool for issuing, tracking and managing certificates securely
Flexible, all-in-one platforms like Cloud Assess incorporate features from each of these solutions.
4. Provide Blended Learning Opportunities
Blended learning can be a great way to support flexible study for overseas students. Just remember that they can complete no more than one-third of their course through online or distance learning. They must also study at least one face-to-face unit in every compulsory study period. Clear planning helps you design courses that meet these requirements while still offering variety and engagement.
5. Maintain Audit Readiness
Regular audits help ensure your registered training organisation (RTO) meets ESOS obligations and stays compliant year-round. Conduct regular internal quality assurance reviews to check your records, processes, and reporting. This will reduce stress and help you catch issues early. It’s also important to keep policies and documents organised and easy to access. This will help you stay audit-ready at all times.
Challenges That RTOs Face With ESOS Compliance
Meeting Reporting Requirements
Providers need to report non-commencement, student withdrawals and cancellations to PRISMS within strict timelines. Missed deadlines can lead to compliance issues.
Solution: Set up internal reminders and clear workflows for processing student changes quickly. Make sure staff understand the 31-day reporting rules and know exactly what triggers a report.
Managing Course Extensions
Some students may need more time to finish courses. This means extending their Confirmation of Enrolment. These extensions need to be reported within 31 days (or 14 days for learners under 18). Any delays can affect a student’s visa status.
Solution: Track student progress proactively so you can spot extension needs early. Communicate clearly with students about extension requirements to avoid late requests.
Addressing Poor Performance
Monitoring student attendance and academic progress is a requirement under the National Code. If performance is unsatisfactory, you must report it in PRISMS.
Solution: Use early-intervention strategies to support students before performance becomes a compliance issue. Keep clear records of meetings, warnings, and support actions.
FAQs About ESOS
Who does the ESOS framework apply to?
The ESOS framework applies to education providers who deliver courses to overseas students on a student visa. It also applies to the students enrolled with those providers and the agents and third parties acting on their behalf.
Can RTOs deliver any training to international students without ESOS registration?
Yes, but only in very limited cases. RTOs can deliver supplementary VET skill set courses to overseas students without becoming ESOS-registered or listing the courses on their CRICOS scope. These courses must be taken alongside the student’s primary CRICOS-registered qualification. They’re usually short skill sets required for work in specific Australian industries.
What happens when a student defaults on their obligations under the ESOS Act?
A student defaults when they don’t start a course, withdraw, or have their enrolment terminated. When this happens, training providers must follow the refund rules detailed in Part 5 of the ESOS Act. The TPS does not arrange alternative courses in these cases.
