Transnational education (TNE) has become an increasingly popular strategy for universities seeking to expand their global footprint, diversify revenue streams, respond to shifting government policies and cultivate international partnerships. However, as universities accelerate their TNE strategies, the regulatory landscape for TNE remains complex. Understanding the interplay between Australian and foreign laws, and the practical realities of delivering education offshore, is critical to TNE success.

What transnational education involves

TNE arrangements can greatly vary, though the most common TNE approaches implemented by Australian universities include online delivery, establishing branch campuses abroad and partnering with foreign universities for joint degree programs or articulation arrangements. The optimal strategy will partly be driven by foreign education regulatory requirements, which may rule out certain TNE models. 

Tips and traps

• Current Australian regulatory landscape: Regardless of where and how they deliver Australian higher education qualifications, Australian universities must comply with the Tertiary Education Quality and Standards Agency Act 2011 (Cth) (TEQSA Act) and associated Higher Education Standards Framework (Threshold Standards) 2021. The Education Services for Overseas Students Act 2000 (Cth) (ESOS Act) does not apply where the TNE strategy is delivered wholly overseas. However, as the ESOS Act captures 'intending overseas students', if the TNE strategy involves students spending any time in Australia as part of their degree, those students will likely be considered 'intending overseas students' and the Australian university must ensure that its arrangements with those students comply with the ESOS Act from the outset. 
• Upcoming Australian reforms: Proposed amendments to the TEQSA Act under the Education Legislation Amendment (Integrity and Other Measures) Bill 2025 (Cth) (Bill) will, if passed, introduce additional new regulatory requirements relating to TNE activities. This includes the need for authorisation from TEQSA to deliver Australian courses of study at offshore premises (excluding formal exchange programs of up to 12 months and offshore research that contributes to course requirements), unless the university was already delivering those courses or had entered into an arrangement to deliver those courses prior to 9 October 2025.
• Foreign approvals: Many foreign jurisdictions require an Australian university to obtain formal approval prior to commencing TNE, sometimes even where delivery is wholly online. These approvals are distinct from general compliance obligations and typically involve engaging with local regulators, submitting documentation and securing formal authorisation to operate. Approval requirements should be considered when developing a timeline for implementation of a TNE strategy.
• Foreign law recognition, restrictions and local requirements: In addition to obtaining approval, Australian universities must also comply with the ongoing legal and regulatory requirements of the host country. These may include rules governing degree recognition, data privacy, taxation, and employment. While approvals grant permission to operate, compliance ensures that operations remain lawful and sustainable once underway. The requirements imposed by foreign countries can significantly affect the design and delivery of transnational programs, particularly as foreign education regulatory requirements are increasingly imposing requirements that ensure that more benefits from TNE arrangements remain within the foreign jurisdiction. For example, some jurisdictions require joint delivery with a local higher education institute, while others do not permit wholly online delivery for certain degrees or will not formally recognise online degrees within the jurisdiction for local employment. Such requirements will need to be considered up front and factored into the Australian university's strategy, structure and timeline for implementation.
• Foreign arrangements: The Australian Foreign Relations (State and Territory Arrangements) Act 2020 (Cth) (AFRA) requires Australian universities to notify, and in some cases seek approval for, arrangements with foreign entities, including local TNE partners. Compliance with AFRA is essential, as Ministerial declarations may affect the validity or operation of such arrangements. Australian universities should ensure that all relevant agreements are reviewed for AFRA compliance and that notification and approval processes are built into project timelines. As AFRA captures arrangements with foreign universities that do not have institutional autonomy (eg. where they are controlled by a foreign government), universities should undertake an upfront assessment to determine whether their TNE arrangements require notification.
• Staffing considerations:  Even when delivering programs internationally, Australian employment law (including the Fair Work Act 2009 (Cth) (FW Act), the Occupational Health and Safety Act 2004 (Vic) and the Superannuation Guarantee Administration Act 1992 (Cth)) will generally continue to apply to university staff assignments overseas. Specific consideration should be given to the employment related obligations of an Australian university with respect to overseas staff assignments. For example, those working on a fly-in-fly-out basis, who remain 'Australian-based' employees, will retain minimum entitlements and protections under the FW Act (including leave, notice and access to general protections provisions). Visa and work permit requirements vary significantly across jurisdictions and may restrict the ability to have staff on the ground for extended periods due to limits on duration, role, and eligibility. Non-compliance can result in legal and reputational risks, including fines or deportation. These constraints may necessitate alternative models such as short-term visits, local partnerships, or remote delivery.
• Tax considerations: Universities must ensure that offshore activities do not impact their Australian income tax exemption or charity status. This risk may arise if the university is no longer considered to be 'in Australia' for tax purposes. Generally, to meet the requirement to be 'in Australia' a university must be established and legally operated in Australia and make operational or strategic decisions mainly in Australia. For charity status, the risk increases if income and assets are not applied solely in furtherance of the university’s charitable purpose, or if arrangements with overseas or for-profit partners are not on arm’s length commercial terms. In addition, local tax laws may have financial implications for TNE strategies. For example, creating a permanent establishment offshore (which can occur when a university has a fixed place of business in the foreign jurisdiction or when local partners act principally on behalf of the university), can expose the university to local taxation. 
• Curriculum: Adapting curriculum and pedagogy to suit local circumstances is another critical factor, both for Australian regulatory compliance and for the practical success of the TNE strategy. While it is important to ensure that teaching methods and materials are adjusted to respect local cultural norms, language preferences and learning styles, an Australian university should keep in mind its Australian education regulatory requirements which require equivalence of student experience across cohorts, whether in Australia or overseas.
• Exit strategies: Australian universities should not overlook the importance of having well-considered exit or transition strategies. Changes in market conditions or regulatory frameworks may necessitate a withdrawal from the host country, in which case an Australian university may require access to course curriculums and teaching materials to give effect to necessary teach-out arrangements. Clear exit plans are vital to safeguard the interests of students, staff, and the Australian university's reputation.

Navigating TNE successfully

Successful TNE requires a nuanced understanding of both Australian and foreign regulatory frameworks. As Australian universities continue to expand their global footprint, it is important to recognise that there is no one-size-fits-all model as each jurisdiction imposes unique requirements. Australian universities must carefully develop their TNE strategies taking into account these requirements. By doing so, they can better navigate the challenges of transnational education to achieve successful outcomes.