Australia's higher education watchdog will ramp up cooperation with international regulators to tackle industrial-scale contract cheating, which is challenging institutions the world over.

Anthony McClaran, who this week announced he would step down after more than four years as chief executive of the Tertiary Education Quality and Standards Agency, said the providers of paid cheating services were becoming more sophisticated and cracking down was a priority for the regulator.

Anthony McClaran, outgoing chief executive of the higher education regulator. Credit:Arsineh Houspian

In an interview ahead of his departure from the role, Mr McClaran welcomed the government's introduction of stiff penalties for providers of essay ghostwriting and other cheating services and said his agency had escalated its efforts in recent years but more work was needed.

"I think it is necessary to ramp up the efforts," he said. "Unless action is taken, it certainly will grow."