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An estimated 10,000 students a year are subjected to disciplinary action across Australia's universities, most of them for plagiarism allegations.

At the helm of the company embroiled in a large-scale academic cheating scandal is a Chinese-born businesswoman. The enterprising 30-year-old has used her accounting degree to build a lucrative ghostwriting service, called MyMaster. This pitch has seen the MyMaster company turn over at least $160,000 during 2014 and return more than 900 fraudulent assignments to students prepared to hand over up to $1,000 for the work.

Doctors, registrars and psychiatrists at some of Sydney's top hospitals have cheated in their medical exams through collusion and sharing illicit photos of examination papers. Documents obtained by Fairfax Media show that some former students of the University of Sydney's medical program have been colluding since at least 2009, with illicit materials such as photographs of examination papers still being shared with current students in the psychiatry, paediatrics and community departments of Sydney's most prestigious medical school.

Universities are being urged to block websites that sell essays, identify cheating "hot spots" and consider publishing data on breaches of academic integrity. As universities grapple with a rise in contract cheating – which involves students outsourcing assessments – Australia's higher education watchdog has unveiled new guidelines to tackle the issue. A recent survey by a University of South Australia associate professor who helped create the guidelines, found that 6 per cent of Australian students engaged in cheating.

“Contract cheating” is becoming commonplace in many Australian universities, with a range of easily accessed services offering to complete assignments or sit an exam for money. Some services even offer the students the possibility of choosing the type of grade, the price is adjusted according to the grade they wish to obtain. The Government submitted new legislation and the person providing cheating services to students could face two years in jail and a $210,000 fine.

The Minister of Education announced that cheats selling their services to Australian university students would face two years imprisonment or fines of up to AU$100,000. Students who cheat will also be subject to their institutions’ own academic integrity policies and sanctions. The Tertiary Education Quality and Standards Agency will be empowered to request legal measures to force internet service providers and search engines to block cheating websites.