From E-Skills Australia
August regulatory focus: AI governance, overseas student transfer controls, higher education governance changes, ASQA cost recovery and regulatory monitoring, and current VET and student outcome data are the key themes for providers to monitor this month.
This month's regulatory updates point to a clear direction for regulated education providers: stronger governance, stronger evidence, and more deliberate self-assurance. Providers should particularly note ASQA's new principles for responsible AI use in VET, the joint ASQA and TEQSA alert on overseas student transfers, the amended Higher Education Threshold Standards relating to racism and governance, and ASQA's updated cost recovery and regulatory monitoring approach. International education providers should also review current managed growth settings, visa prioritisation context, agent commission rules and CRICOS application restrictions. E-Skills recommends that providers use these updates to refresh board reporting, agent controls, AI and assessment governance, risk registers and internal compliance calendars.
This Month's Key Developments
ASQA releases principles for responsible AI use in VET
ASQA has released five principles to support safe, ethical and compliant use of artificial intelligence across VET provider operations. ASQA states that the principles do not introduce new regulatory requirements, but provide a structured way for providers to interpret, implement and oversee AI use within existing obligations, including the 2025 Standards for RTOs.
Why it matters: RTOs should expect AI use to be considered through the lens of governance, assessment integrity, privacy, student support, documentation, trainer and assessor practice, and self-assurance.
Suggested provider action: Review current AI use across training, assessment, student support, marketing and administration; update AI, academic integrity and assessment guidance; document governance controls and staff expectations.
Joint ASQA and TEQSA sector alert: overseas student transfers
TEQSA and ASQA have issued a joint sector alert regarding compliance concerns about overseas student transfers. The agencies are concerned that some registered provider advertising may be inconsistent with the intent of the ban on education agent commissions for onshore transfers.
Why it matters: Both higher education and VET/CRICOS providers should treat onshore transfer marketing, agent communications, commissions, student transfer processes and PRISMS records as current compliance risk areas.
Suggested provider action: Review agent agreements, advertising, recruitment controls, transfer procedures, staff instructions, PRISMS records and evidence of compliance with the onshore transfer commission ban.
Higher Education Threshold Standards amended: racism and governance
The Australian Government has amended the Higher Education Standards Framework (Threshold Standards) 2021 to require higher education providers to take action against racism and strengthen governance. The changes make provider obligations clearer, more accountable and more enforceable.
Why it matters: Higher education providers should plan early for governance review, policy updates, complaints handling, institutional safety, cultural safety and self-assurance evidence. Racism-related obligations commence from 1 January 2027 for all higher education providers. Governance amendments are phased from 1 January 2027 for Table A universities and 1 July 2027 for all other higher education providers.
Suggested provider action: Schedule a gap review against the amended Threshold Standards; brief governing bodies and senior executives; update relevant policies and assurance evidence before the commencement dates.
ASQA CRIS 2026-27 and revised regulatory assessment approach
ASQA has published its Cost Recovery Implementation Statement (CRIS) 2026-27, with regulatory fees and charges applying from 1 July 2026. ASQA has also released its revised Regulatory Assessment and Monitoring Approach, which explains wider regulatory activities, a four-category approach to performance assessments, tiered pathways for compliance resolution and targeted activities such as site visits and specialised financial viability assessments.
Why it matters: Providers should expect cost recovery, performance assessment and risk-based monitoring arrangements to influence budgeting, application decisions, audit preparation and ongoing regulatory engagement.
Suggested provider action: Update internal compliance calendars and regulatory budgets; brief CEOs, PEOs and finance teams; review audit readiness and evidence systems against the risk-based approach.
VET Regulation and ASQA Updates
ASQA Provider Reference Group established
ASQA has established a Provider Reference Group to strengthen engagement with the VET sector and support continuous improvement in regulation. ASQA states that the group will engage with providers on emerging issues and sector trends, seek input on proposed regulatory and education approaches, and improve the clarity and usability of guidance.
Why it matters: This may create a more structured pathway for sector feedback and may influence future guidance, engagement and regulatory education activity.
Suggested provider action: Monitor Provider Reference Group communiques and consider whether sector issues affecting providers should be raised through representative channels.
VET data update: participation remains high while qualification enrolments fall
NCVER reports that more than 5.1 million students were enrolled in nationally recognised VET in 2025, with overall participation remaining high while qualification enrolments declined. Qualification enrolments fell by more than 5 per cent, while shorter courses and stand-alone subjects grew in 2025.
Why it matters: Providers should consider market demand for flexible, shorter, targeted and workforce-relevant training, while maintaining quality and compliance in nationally recognised delivery.
Suggested provider action: Review product mix, delivery models, completion support and shorter-course opportunities against student and employer demand.
Higher Education and TEQSA Updates
TEQSA resource: generative AI and assurances of learning
TEQSA has published a new resource on assuring quality learning in a generative AI-integrated future. The resource forms part of the assessment reform series and focuses on equipping students to interact ethically and responsibly with generative AI, while maintaining learning quality and developing capabilities such as evaluative judgement, critical thinking and ethical reasoning.
Why it matters: Higher education providers should ensure AI-related assessment changes are tied to learning assurance, academic integrity, graduate capability and documented governance arrangements.
Suggested provider action: Review assessment design, academic integrity policies, assurance of learning processes and staff guidance for generative AI use.
CRICOS and International Education
International education managed system: 2027 settings announced
The Department of Education has confirmed a National Planning Level of 295,000 for 2027, maintaining the same level as 2026. No active international education provider will receive a lower allocation in 2027 than in 2026. TAFE students will be exempt from the National Planning Level in 2027, and government will continue to use a Ministerial Direction to manage student flows through visa prioritisation.
Why it matters: CRICOS providers should factor allocations, visa prioritisation settings, Southeast Asia engagement and accommodation considerations into recruitment and growth planning.
Suggested provider action: Review provider allocation settings, recruitment forecasts, agent strategies, accommodation capacity and student support capacity for 2027 planning.
Reminder: suspension on new CRICOS applications remains in force
The Australian Government has introduced a temporary suspension on certain new applications under the ESOS Act, running from 19 May 2026 to 19 May 2027. The suspension applies to new CRICOS applications and applications to add new courses to existing CRICOS registration, subject to specified exemptions. Applications relating only to adding a new delivery location for an existing approved course are not affected.
Why it matters: This affects new CRICOS provider registration and CRICOS course expansion planning for ASQA-regulated providers. It is particularly relevant to private VET providers considering offshore or international growth.
Suggested provider action: Check whether planned CRICOS applications are affected by the suspension or fall within an exemption; review timing and alternative expansion strategies.
Governance and Compliance Action for the Month
Work through these six checks this month: 1. Review whether AI is being used in training, assessment, marketing, student support, admissions or administration, and document oversight controls. 2. Check education agent agreements, commission arrangements, marketing messages and PRISMS practices for consistency with onshore transfer restrictions. 3. For higher education providers, commence early planning against the amended Threshold Standards for racism, complaints handling, governance and self-assurance evidence. 4. Review ASQA CRIS 2026-27 fee impacts, annual registration charge timing and budgeting for applications or assessments. 5. For CRICOS providers, confirm whether planned applications are affected by the CRICOS lodgement suspension. 6. Use current NCVER and Jobs and Skills Australia data to review demand, product mix, delivery model and student outcome improvement priorities.
Important Dates and Actions
- 9 August 20262026 National Student Outcomes Survey closes (11.59pm AEST)
- Mid-August 2026ASQA 2026-27 Annual Registration Charge invoices
- Provider-specificRegistration renewal
- Within 10 business daysESOS ownership or control changes
- Invoice-specificTPS levy
- Review nowCRICOS nil-delivery review
E-Skills Support
E-Skills Australia works with RTOs, CRICOS providers, ELICOS providers and higher education providers across registration, audit, governance, risk and self-assurance. If any item in this issue raises a question for your organisation, contact us at enquiries@eskillsaustralia.com.au or (+61) 3 9620 3995.