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TAFE Directors Australia CEO Craig Robertson . Photo : Kym Smith
Cost over quality
Peak bodies concerned about onshore international students turning to ‘ lowcost ’ training providers .
By Wade Zaglas
A joint position statement has been released by the Independent Tertiary Council Australia ( ITECA ) and TAFE Directors Australia ( TDA ), with both peak bodies worried that onshore international students are increasingly turning to low-cost training providers that may not be satisfying “ educational or industry expectations ”.
The statement has been sent to the Department of Education , Skills and Employment ( DESE ), as well as Australia ’ s regulatory bodies for tertiary education : the Tertiary Education Quality and Standards Agency ( TEQSA ) and the Australian Skills Quality Authority ( ASQA ). The purpose of the statement is to provide an overview of the peak bodies ’ concerns about the issue , as well as recommend actions “ considered necessary to uphold the integrity , reputation and quality of the Australian international education sector ”.
According to both ITECA and TDA , the practices of some providers could have substantial and negative flow-on effects for the rest of the sector .
“ While sector representatives understand that these practices appear to be limited to a cohort of providers with a particular business model , the impacts of those practices compound across the sector ,” the peak bodies said .
“ This compounding effect results in accelerated fee reductions among quality providers leading to viability challenges and the potential of provider closure , potentially harming students and tarnishing the reputation of Australian international education at a time when the sector is trying to rebuild through and out of the pandemic .”
THE COST OF LOW-COST PROVIDERS
Feedback to TAFEs and independent providers suggests that these transfers to more low-cost providers are being facilitated by onshore agents .
“ After accounting for agent ’ s commissions , within that transaction the receiving providers will be delivering courses on an even further lower cost basis ,” they state .
“ Lower-priced programs and competition for students may demonstrate a well-functioning market , however , this is a market with obvious supply-side imperfections and the likely outcome instead is contravention of regulatory requirements such as study and attendance requirements .”
Both peak bodies believe the sector ’ s policy makers and regulators ( DESE , TEQSA and ASQA ) play an integral role in “ upholding conditions for fair competition ”, particularly in ensuring training providers live up to their legislated obligations .
However , one of the issues identified by both peak bodies is that current administrative data is unable to put a precise figure on the “ rate or scale of transfers reported by the sector ”. In light of the damage caused by COVID-19 and a determination to rebuild the sector , “ both TDA and ITECA feel it is now crucial to develop a clear and comprehensive picture
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