The Baird Review, named after former Liberal MP Bruce Baird who amalgamated the report, was commissioned shortly after news of attacks on Indian students living in Australia made international headlines.
"Improving complaints mechanisms" for students is the cornerstone of the review.
The report recommends increasing regulation of colleges and educators, and the fining of dodgy institutions who provide questionable advice to potential students.
The review also urges a 'One Approach' that sees the creation of 'education hubs' for students to get information on the sector, and the bringing together of all regulators in the industry for a national approach to the issue, rather than the current state-based one.
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Mr Baird also says the Ombudsman needs greater powers in order to take on problem cases.
Education Minister Julia Gillard says the education industry is "important for the country" and that the report is a "comprehensive, high quality piece of work".
She says the Rudd Government is serious about "lifting the bar for entry to become an educational institution".
The Education Minister says the Opposition will be briefed on the report, and that the government is seeking "the spirit of bipartisanship" on this issue.
Ms Gillard also says the government will consult with the education industry before implementing the reforms.
