2.1 Financial viability
This guideline ensures that an RTO can demonstrate its financial viability. It enhances the requirements in the 2025 Standards for RTOs Outcome Standard 4.3(2)(b) to ensure financial risk is managed, monitored, and understood.
On request, an RTO must be able to demonstrate to the VRQA that it is financially viable at all times during its period of registration. Financial viability includes demonstrating capacity to sustain quality VET operations into the future.
Requirements
| a. | An RTO must: | |
| i. | have its accounts certified by a qualified Accountant to Australian Accounting Standards at least annually and provide the certificate to the VRQA on request | |
| ii. | provide the VRQA with a completed VRQA Financial Viability Risk Assessment on request | |
| iii. | if the VRQA deems it necessary, provide a full audit report on the RTO’s financial accounts from a qualified and independent accountant | |
| iv. | be able to demonstrate that it is financially viable at all times during its period of registration, by providing financial statements or a business plan on request. | |
Regulatory context: Education and Training Reform Act 2006 and the National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025.
2.2 Governance and management systems
This guideline ensures that providers have appropriate educational governance arrangements and demonstrated management capacity. It enhances the leadership and accountability requirements in the 2025 Standards for RTOs Outcome Standards 4.1, 4.2, 4.3 and 4.4.
Requirements
| a. | An RTO must: | |
| i. | provide details of company incorporation in Australia (or alternatively, evidence of being an incorporated body in receipt of government funds) | |
| ii. | have a physical address of the company in Victoria for the purposes of serving notices | |
| iii. | provide confirmation that at least one director or chief/principal executive officer (CEO/PEO) has their principal residence in Victoria | |
| iv. | provide contact arrangements for the CEO/PEO, including during holidays and other closure periods | |
| v. | have appropriate governance structures that include transparent governance and ownership arrangements, such as a Board of Directors, governing council, executive management and academic management. | |
| b. | An RTO must have a governance structure that includes appropriate appointments of persons for oversight of academic/educational integrity and quality assurance, such that: | |
| i. | for an RTO with anticipated ongoing operation of less than 150 equivalent full-time students or an annual student fee turnover of less than $1.5 million per annum, persons are appointed with suitable qualifications and experience | |
| ii. | for all other RTOs, a governance committee is established that includes individuals who are independent of the RTO’s ownership and are employed with suitable qualifications and experience. | |
Regulatory context: Education and Training Reform Act 2006 and the National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025.
2.3 Interactions with the VRQA
This guideline clarifies and strengthens section 4.3.17(2)(g) in the Act. It ensures that RTOs provide information to the VRQA relevant to compliance and operations.
Requirements
| a. | The CEO/PEO must ensure that the RTO cooperates with the VRQA: : | |
| i. | in the conduct of audits and the monitoring of operations | |
| ii. | by providing accurate and timely data relevant to measures of its performance | |
| iii. | by providing information about significant changes to its operations, including voluntary administration, business merging, risk of insolvency | |
| iv. | by providing information about significant changes to its ownership | |
| v. | in the retention, archiving, retrieval and transfer of records consistent with the VRQA’s requirements, including access to student records held by service providers in the event the RTO ceases operations | |
| vi. | to ensure the RTO’s data is accessible by the VRQA in electronic format and at no cost in the event that the VET provider ceases operations, including records in private third-party databases | |
| vii. | informing the VRQA of concerns relating to child safety by staff or volunteers for the RTO. | |
Regulatory context: Education and Training Reform Act 2006.
2.4 Annual declaration of compliance
An RTO registered with the VRQA must provide an annual declaration of compliance that confirms the organisation is compliant across its existing scope of registration with the 2025 Standards for RTOs and these guidelines.
Requirements
| a. | An annual declaration that includes delivery information and any other information required by the VRQA. |
Regulatory context: Compliance Requirement 15 for VRQA-registered RTOs.
Explanatory notes
The annual declaration must be in the format provided by the VRQA.
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