Hi Tiggs,
Not quite correct. Taken together, s. 294 of the Migration Act and Reg 6C of the Migration Agents Regulations provide that to be an agent you need to be an Australian citizen or the holder of a permanent resident visa or a New Zealand citizen currently in Australia - so what you've been told would only be true if he's a Kiwi. Reg 6C only took effect on 1 July 2005, before that a permanent resident visa holder had to be usually resident in Australia to be registered as an agent, so it's not clear if it's a deliberate lie or a lack of knowledge of the Migration Act and Regs or a piece of fast talking by a New Zealander.
You should also bear in mind that registered agents are obliged to observe the code of conduct - see a large number of consumer protection provisions. Engaging an unregistered agent is certainly not going to be cheaper, and carries significant risks with respect to the quality of the advice you receive, the security of any money you give to the agent, and your rights if the agent does not observe the basic standards of the code.
Cheers,
George Lombard
www.austimmigration.com.au
-- www.austimmigration.com.au