AUSTRALIAN colleges that attract overseas students face tougher regulation and international agents face a crackdown on providing dodgy information under recommendations contained in a report into the problems confronting the sector.

Former federal Liberal MP Bruce Baird, in delivering the report this afternoon, called for greater transparency from education providers to overseas students.

It calls for greater consumer protection for overseas students from dodgy operators, and improved the level of support provided to the students.

He also warned that Australia's reputation had been damaged by dodgy operators rorting the system to provide “permanent residency factories” for some students.

“Migration skewed demand has undoubtedly impacted on the reputation of our international education sector but the recent changes to general skilled migration will go some way to address this,” he said.

Education Minister Julia Gillard said the government supported in principle recommendations to amend overseas student legislation to lift the bar on entry into the international education industry in Australia.

“The government will also move to implement recommendations which relate to restricting unethical student recruitment practices as soon as possible,” she said.

Mr Baird said the dramatic growth in students coming to Australia and the increase in vocational education and training providers offering “a narrow range of courses linked to migration outcomes” and sourcing students from a limited number of countries had increased the risk of some colleges closing.

“This has put considerable pressure on the current tuition protection framework, with fears it is unsustainable.”

Mr Baird called for national regulation of vocational education providers, and for an insurance fund covering educational institutes to be able to operate colleagues as a going concern, pending their sale, to avoid mass dislocation of students.

International student hubs would be set up in all capital cities to give them access to advice, course referral services and how to better interact with the Australian community.

Mr Baird also called for a single tuition protection service to be fully funded from the industry and either run by the commonwealth or an independent body.

Mr Baird also cited the fact that NSW and Victoria did not provide public transport concessions to international students as “inequitable”.