Australian government pledged on Tuesday it would not tolerate abuses of the system governing the education of foreign students in Australia.
Concerns about Australia's third-biggest export industry have reignited after an investigation by the Australian Broadcasting Corporation 's Four Corners program claimed some colleges and migration agents are ripping off foreign students.
The claims follow recent fiery debate sparked by violence against international students, especially Indians.
Australian Foreign Minister Stephen Smith insisted the government was taking action to stamp out abuses of the system.
"The cracking down so far as the migration agents' regulatory arrangements are concerned will assist in that process, just as the efforts that we've been making together with the Indian government," he said.
However, the Migration Institute of Australia believes a lack of policing of the industry is the issue, not regulation.
"The big issue, I think, facing us at the moment isn't so much the people that are currently regulated, but what we haven't got is any real action when someone steps outside of the regulatory framework and is acting illegally," the institute's chief executive Maureen Horder told Australian Broadcasting Corporation Radio.
"I think successive governments have been tardy in policing the lack of compliance in the migration advice field," she said.