Fake Student Applications From Overseas Are Hitting Australian Education Providers

Jens Schlueter/ Getty

ASX-listed education provider Navitas is seeing a spike in fake applications from overseas students wanting to come to Australia.

Australian authorities have been cracking down on students who gain a visa to study, but then work full-time.

CEO Rod Jones told the company’s AGM that enrolment requirements have been tightened to ensure only genuine students are recruited.

“We identified higher than acceptable levels of non-genuine student applications from students in a number of higher-risk source countries,” he says.

The tightening of recruitment may have an impact on growth of the company. He didn’t identify the risk countries.

Jones says the Federal Government’s tertiary education reforms will likely have a positive effect, although these are yet to be ratified by the Senate.

The reforms include funding for non-degree programs such as diplomas and advanced diplomas.

Jones expects growth in student enrolments across the University Programs Division to continue. Australian and UK operations will focus on maximising value from existing colleges throughout the year.

US operations will contribute to the earnings as enrolments at existing colleges grow. Enrolment at Canadian colleges continues to be strong.

However, English Programs Division is expected to record a flat result compared to financial year 2014 as government contract volumes drop in-line with the Federal Government’s cut in humanitarian migrant numbers.

The company is maintaining its guidance on underlying earnings of between $162 million and $172 million for the 2015 financial year.

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