The well-established English language and VET provider, which has been operating since 1997, has been placed into voluntary administration by a creditor. An update on its future is anticipated later this week.
“Throughout 2024, IH Sydney Training Services has been in various discussions to bring an investor or acquirer into the company,” said Tim Eckenfels, owner and CEO, IH Sydney.
“Beginning in August, after the success of our mid-year Junior Holiday Program, IH Sydney Training Services began to be seriously impacted by the effects of Ministerial Directive 107, the AUD$1,600 student visa fee and the uncertainty of the pending ESOS legislation.
“Since then, we have been working to cut all unnecessary expenses and costs, reduce our campus footprint, let go of contractors and have undertaken staff redundancies. We have been engaging in open, transparent communication with all of our creditors and have put in place payment plans when possible. On Friday, one of our creditors put us into voluntary administration.”
Eckenfels continued: “We continue our ongoing discussions with outside providers to acquire all or part of the business. We are in discussions with the Tuition Protection Service (TPS) and there is currently no impact on our students. We will be taking decisions before the end of the work as to our path moving forward.”
We are in discussions with the Tuition Protection Service (TPS) and there is currently no impact on our students
Tim Eckenfels, IH Sydney
IH Sydney is a prominent institution in Australia’s educational landscape, offering a diverse range of programs, including English language courses and vocational training. The news has saddened colleagues, competitors, and stakeholders across Australia and around the globe after a tumultuous year for Australia’s international education sector.
Eckenfels, alongside his colleague and general manager of revenue, Mark Raven, participated in Senate hearings on the ESOS Amendment Bill, where they jointly warned of the catastrophic impact the Bill – including its cap on international enrolments – would have on businesses and individuals.
The success of the Bill, which was widely expected to be passed and implemented by January 1, was hampered when the Coalition, along with the Greens and the Independents, revealed intentions vote against the proposed legislation.
Education minister Jason Clare has since emphasised that controversial visa processing directive Ministerial Direction 107 will be here to stay if the government’s proposed cap on international enrolments, also known as National Planning Level, does not pass.
Sector consultant and principal of Claire Field and Associates, Clare Field, commented on the news of IH Sydney’s financial struggles: “International House has been a part of Australia’s international education landscape for decades. They’re a vibrant, high quality institution and I hope the administrator is able to find a way for them to continue to operate.
“The impact of the July 2024 decision to raise international student visa application fees is clearly a factor. Why would international students want to come to Australia to study a 12 or 24 week English language course to improve their language skills when their visa application will cost them $1,600 and there’s a lot less certainty about whether their application will even be approved?”
The visa fee for international student visas applying to study in Australia increased from AUD$710 to AUD$1,600 in July in a hammer blow to a sector already in crisis.
Stakeholders have previously noted that while students enrolled in longer courses might not be significantly deterred by the increased fees, the change is more likely to discourage those considering shorter-term English courses.