St George Institute of Professionals, a Melbourne-based vocational college offering courses in management, multimedia and graphic arts was closed for the same reason.
The affected students were expected to be offered a placement in suitable alternative courses at no extra cost.
The college would surrender its registration from Wednesday, Sep 30. The college was registered as a private college in 1998.
The closing of colleges is the government's effort to audit 41 institutions regarded as a 'high risk' to international students