Captain Cook College ordered to pay $30m for `unconscionable conduct’ over students $60m debt

A vocational college that had operated in the Brisbane CBD has been fined more than $30m over making false and misleading claims to online students leaving them $60m in debt.

The Federal Court said that as a result of Captain Cook College’s actions, about 5500 affected consumers were left with VET FEE-HELP debts, totalling over $60m.

The Federal Court has ordered a Brisbane CBD vocational college to pay more than $30m in penalties for engaging in systemic unconscionable conduct which impacted on more than 5000 students.

A Brisbane businessman has also been fined and banned from managing corporations for three years.

Captain Cook College, which at one stage had a presence in Adelaide St in the CBD, was ordered to pay penalties of $20m for engaging in systemic unconscionable conduct. Its parent company was ordered to pay $10m.

The College was also ordered to pay $750,000 for making false or misleading representations to students in connection with online diploma courses under the former VET FEE-HELP loan program.

The College, which received tens of millions of dollars of Federal Government funding, removed consumer safeguards from its enrolment and withdrawal processes from September 7, 2015.

The Australian Competition and Consumer Commission said the removal of these safeguards meant that thousands of students incurred substantial debts, despite the fact they were not engaging with their courses.

As a result of Captain Cook College’s actions, about 5500 affected consumers were left with VET FEE-HELP debts, totalling over $60m. The vast majority of them failed to complete any part of their course, and around 86 per cent never even logged in to their online course.

The Government ultimately waived the VET FEE-HELP debts of affected Captain Cook College students and withheld some of the payments from the college.

“Captain Cook College’s conduct not only cost taxpayers tens of millions of dollars, but it also caused distress to the thousands of consumers enrolled in their courses who for many years were told they had significant debts to the Government,” ACCC Chair Gina Cass-Gottlieb said.

Blake Wills. Photo: Supplied

The Court also imposed penalties of $10m on Captain Cook College’s parent company, Site Group International Limited, and $400,000 on Blake Wills – Site’s former chief operating officer – who were knowingly concerned in Captain Cook College’s system of unconscionable conduct.

The Court also disqualified Mr Wills from managing corporations for three years.

The decision in the Federal Court came after two unsuccessful appeals by Captain Cook College, Site and Mr Wills against the systemic unconscionable conduct findings.

“We are pleased with this outcome which sends a message to all businesses, including those seeking to obtain government funding, that they must comply with the laws which protect consumers” Ms Cass-Gottlieb said.

“The judgment also shows the ACCC’s determination to pursue individuals in appropriate cases.”

The Court also made a costs order in favour of the ACCC.

In June 2020, as part of a settlement with the ACCC, former Captain Cook College CEO Ian Cook admitted that he was knowingly concerned in Captain Cook College’s system of unconscionable conduct.

The Court disqualified Mr Cook from managing corporations for three years and ordered that he pay $250,000 in penalties and contribute towards the ACCC’s costs.

Captain Cook College was established in 1998 and was acquired by Site Group in 2014.

It ceased substantive trading at the end of 2016. Site and several subsidiaries entered into voluntary administration in March 2025. Administrators have been appointed to Site and Captain Cook College.

The ACCC commenced proceedings against Captain Cook College, Site Group, Mr Cook and Mr Wills in November 2018.

Originally published as Captain Cook College ordered to pay $30m for `unconscionable conduct’ over students $60m debt