Julian Hill says educational providers are being closely watched by government after course attracted non-genuine students

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Private colleges have issued nearly 3,000 last-minute enrolments to a diploma course that is being cancelled after allegedly being “misused” by non-genuine students, as Labor threatens to suspend providers that are manipulating new rules.

Guardian Australia revealed last month that private colleges were offering discounts to rush students into the graduate diploma of management (learning) ahead of its deregistration on 5 October, which the government says was being used by some non-genuine students to remain in the country. The assistant minister for international education, Julian Hill, said at the time the system had been “misused”.