FURTHER steps to ensure Australian education's reputation is not tarnished by dodgy providers and fly-by-nighters are part of a consultation paper.

The paper was released by Tertiary Education Minister Chris Evans yesterday.

The consultation paper spells out the government's response to a report into strengthening the Education Services for Overseas Students Act undertaken by former Liberal senator Bruce Baird last year.

The paper concentrates on three key issues: risk assessment and management; an insurance scheme for students hit by college closures; and improvements to a national code of practice.

Senator Evans described the consultation paper as phase two of the response to the Baird review, having already implemented reform in areas as diverse as registration requirements, penalties for non-compliant behaviour and the establishment of a commonwealth ombudsman.

Dennis Murray, executive director of the International Education Association of Australia, said the paper contained no surprises, given all the issues had been foreshadowed in the Baird review.

"There is very little concern about these matters in principle. The issue is sensible casting of the ideas in legislation, and effective implementation," Mr Murray said.

"The most contentious matters relate to risk assessment; the management approach to the registration and ongoing monitoring of education providers; and the need to lighten the impact of implementation on providers of the proposals," he added, noting this was acknowledged in the consultation paper.

Claire Field, acting chief executive of the Australian Council of Private Education and Training, agreed it was pleasing the government was seeking input from the sector in a complex area that needed to balance the needs of providers and students.

But she said ACPET's preference was for an industry-led tuition protection scheme.

Submissions to the paper are due by January 21. It is at www.aei.gov.au.