Following the Coalition’s decision to vote against the ESOS Amendment Bill, Australia’s Education Minister Jason Clare has reaffirmed the government’s commitment to Ministerial Direction 107 (MD107). With key provisions of the ESOS Bill—designed to enhance quality and integrity—yet to be passed, MD107 remains the primary tool for regulating international student enrolments and visa processing.
Understanding Ministerial Direction 107
MD107 prioritizes visa processing by categorizing education providers into three risk levels based on compliance and visa outcomes. Here’s how it works:
Risk Categories
- Level 1 – Low-Risk Providers
- Includes universities, public vocational institutions, and schools.
- Strong compliance records, low refusal rates, and minimal fraud cases.
- Students applying to these providers enjoy faster visa approvals and fewer documentation requirements.
- Level 2 – Medium-Risk Providers
- Covers smaller public and private institutions with mixed compliance histories.
- Students face additional requirements like financial and academic documentation, leading to longer processing times.
- Level 3 – High-Risk Providers
- Typically private colleges and institutions with higher rates of visa fraud, cancellations, or unlawful student outcomes.
- Applications undergo stricter scrutiny, resulting in delays and higher rejection rates.
Criteria for Risk Levels
The classification of providers into these categories is based on five weighted factors:
- Rate of subsequent protection visa applications (10%)
- Rate of visa cancellations (25%)
- Rate of refusals due to fraud (40%)
- Rate of other visa refusals (10%)
- Rate of students becoming unlawful non-citizens (15%)
Impact on International Students
- Students applying to Level 1 providers benefit from faster visa processing and fewer requirements.
- Those applying to Level 2 or Level 3 providers face stricter checks, longer delays, and higher chances of visa rejection.
Why the Government is Focused on MD107
With the ESOS Bill on hold, the Australian government is now leaning heavily on Ministerial Directive 107 (MD107) to regulate international student numbers. MD107 acts as an indirect cap on international student enrolments without requiring parliamentary approval. The Government’s main reasons to focus on MD107 are as follows:
- To Reduce Risk by Focusing on Reliable Providers
- With rising concerns about fraudulent applications, visa cancellations, and unlawful non-citizen outcomes, MD107 prioritizes applications from providers with a strong compliance history.
- This targeted approach reduces risks and ensures only genuine applications move forward efficiently.
- Regulate Student Enrollments
- The ESOS Amendment Bill proposed reforms to improve quality and integrity across the sector, but its delay left regulatory gaps.
- MD107 serves as an alternative, offering immediate oversight and maintaining system accountability in the absence of broader legislative changes.
- Maintains Australia’s Status as a Top Study Destination
- Australia’s education sector depends heavily on its image as a high-quality, transparent, and fair study destination.
- By expediting applications for low-risk providers, MD107 ensures a smoother experience for genuine students, safeguarding Australia’s appeal in the competitive international education market.
- For Smarter Allocation of Processing Resources
- With growing international student numbers, visa processing resources must be used wisely.
- MD107’s risk-based prioritization allows for faster processing of low-risk cases while focusing scrutiny on high-risk providers, ensuring efficiency without compromising integrity.
While MD107 addresses immediate challenges in visa processing and compliance, it has drawn criticism for disproportionately affecting smaller private education providers and creating inequalities in the system. Many argue that its risk-based approach undermines diversity and fairness, favoring larger, well-established institutions.
These concerns highlight the need for long-term strategies that prioritize fairness, equity, and sustainability. A collaborative approach between the government, universities, and other stakeholders is essential to build a system that benefits all institutions and students, ensuring Australia remains a global leader in international education.
