In language learning, there is much evidence to suggest that heritage language (HL) learners exhibit learning needs and profiles that are distinct from non-HL learners. In the case of Chinese language teaching in Victoria, this issue is particularly pronounced because of the loose eligibility criterion that divides students into the streams of Chinese First Language, Chinese Second Language and Chinese Second Language Advanced. This paper aims to address the issue of problematic learning environments that arise when these students are not allocated to the correct stream, which leads to unfair assessment results and intimidates non-HL learners. The paper will take a mixed-method approach with particular emphasis placed on an elicited imitation test conducted on a sample group of students and an analysis of past VCE results to examine the differences between the two groups of learners and to identify the challenges and complications of having both of them in one Chinese classroom.