Dodgy vocational education providers will be targeted in a crackdown of the sector under new laws aimed at protecting students from exploitation.
Legislation introduced to federal parliament on Wednesday would pave the way for registered training organisations to be suspended if they are inactive or engage in unscrupulous behaviour.
Vocational education and training (VET) providers that do not offer genuine courses for students face penalties up to $939,000.
The reforms come following a review into Australia's visa system, which showed some providers were carrying out exploitative behaviour towards students, using training services as a front.
Skills Minister Brendan O'Connor said the changes were designed provide confidence to students that training providers were genuine.
"We are making it tougher for the bottom feeders, the fraudsters and the cheats to take advantage of students for a quick buck. We are restoring integrity to the sector," he said.
"The bill supports the majority of providers those who are genuine who are doing the right thing providing excellent education training and are in the business of doing it for the right reasons."
The laws will also strengthen the powers of the sector watchdog the Australian Skills Quality Authority to take action against training providers who were not offering proper services.
Training organisations will also be banned from expanding their offerings if they have been operating for less than two years.
A crackdown on training providers only operating as shell organisations will also be put in place, with registration automatically lapsing if they have not provided any services in the past year.
"We will weed out dodgy providers that exist in the sector, who seek to exploit students and compromise the integrity and reputation of the entire sector in the process," Mr O'Connor said.
"Most providers do the right thing and are in the business of education and training for the right reasons.
"They will benefit from non-genuine actors who undermine integrity and trust in VET."
Australian Education Union federal president Correna Haythorpe said the measures were much needed.
"These measures are long overdue and we commend the minister ... for acting on issues which everyone knows have plagued the VET sector for a very long time," she said.
However, Independent Tertiary Education Council Australia chief executive Troy Williams said there were still concerning aspects with the bill.
He said the laws would place a ban on new training organisations from being set up.
"This is a degree of market intervention that we've not seen before, not only in the skills training system but elsewhere in the economy," Mr Williams said.
"It would be concerning if the legislation ... did not clearly articulate why and for the how long the government may act to stop the creation of new registered training organisations."
