So you're thinking of becoming an RTO?

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1 So you're thinking of becoming an RTO? One of the first questions you need to ask is... why? Have you considered the compliance costs and risks? What is the business case for your decision? Are you going to be training only your own employees? (that is, operate as an Enterprise RTO). Or, are you going to conduct your RTO as a profitable business? (offering training to the public) If so, do you have a marketing plan and can you prove your financial viability (a requirement of the initial audit by the Australian Skills Quality Authority)? Sandar Management Services ) provides advice and project planning and management for potential RTOs. We can help you though the process of becoming an RTO... with your systems, with your choice of Training Packages and Units, with certification applications, with audits, and with ongoing management. Across Australia, there are over 4,100 RTOs operating. Benefits of being an RTO Registered training organisations (RTOs) are recognised as providers of quality assured and nationally recognised training and qualifications. Only RTOs can: deliver and/or assess nationally recognised courses and qualifications throughout Australia issue AQF qualifications which are recognised by industry and all other RTOs in Australia apply for Australian, state and territory government funding use training products developed by industry to meet industry needs create new accredited courses in response to specific demands develop partnerships with other organisations or enterprises to provide nationally recognised training and/or assessment services register on Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS) to provide courses to overseas students studying in Australia. Nationally recognised training Only RTOs can use the nationally recognised training logo on all qualifications and statements of attainment they issue. The logo is a valuable marketing tool which signifies: the training courses are accredited under the Australian Quality Training Framework (AQTF) the qualifications issued are recognised by all other RTOs. Sandar (02) So you're thinking of becoming an RTO? Page 1

2 This means students will be confident the skills they attain are of a high quality and accepted and valued anywhere in Australia. It also allows students to enrol, transfer or complete their training at any RTO, nationwide. A training organisation that is not registered may offer training but cannot issue nationally recognised qualifications. Australian, state and territory government funding RTOs can apply for financial assistance from government to deliver training. A major component of the Australian Government funding policy is User Choice. This is a national policy but each state and territory determines how it is applied and the amount of funds an RTO can receive. The Australian government and state and territory governments also offer various funding programs targeted at particular learning groups, industries, or regions of Australia. Create and customise courses Only RTOs can customise courses to deliver nationally accredited training that is tailored to the needs of potential clients. Overseas students Training providers wishing to get involved in the growing education export market must be registered on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). To be registered on CRICOS, a training provider must be an RTO. As business proposition RTOs can operate as efecgive businesses. There are over Benefits Of Being An Enterprise RTO Not all registered training organisations (RTOs) are colleges or schools. Many organisations and corporations whose core business is not training choose to become an RTO to deliver nationally recognised training to their employees. Enterprise RTOs can: train staff at convenient times customise training to meet specific needs reduce recruitment costs by increasing retention of staff reduce training cost, where the training demand is large enough access government funding. Convenience By registering as an RTO, a business is able to: deliver training both on and off the job, at times and places suited to its schedules adapt the training to work within its systems and procedures Sandar (02) So you're thinking of becoming an RTO? Page 2

3 In addition to providing the workforce with pathways to further training and career development, delivering nationally accredited training ensures employees have the skills and competencies the business needs. Customisation An enterprise RTO can customise courses and training to increase employee skills and productivity in response to its specific business needs and market conditions. Through Training Packages sets of nationally recognised competency standards for a specific industry, sector or enterprise a business can provide training that delivers practical skills relevant to its industry. Reduced recruitment costs Offering employees nationally accredited training will enhance the reputation of a business as an employer of choice. This will assist in recruiting staff and reducing staff turnover. Reduce Internal Training Costs Where organisations have significant repeated training events for staff, internal delivery of training through an Enterprise RTO can reduce costs by removing the profit margin that exists with the hiring of external training providers. Funding Australian, state and territory governments provide financial assistance to RTOs. The level of funding will, however, vary between the states and territories. Funding initiatives target New Apprenticeships, community groups, growth industries and training in regional areas. Frequently asked questions about registration What is registration? Registration is a nationally recognised stamp of approval. It indicates the training organisation can deliver, assess and issue qualifications or statements of attainment to a nationally agreed standard for the specific vocational education and training qualifications it is registered to provide. What is a registered training organisation (RTO)? An RTO is an organisation, registered in accordance with the AQTF Standards for Registered Training Organisations, to provide specific vocational education and training and/or assessment services. RTOs may include TAFE institutes, private providers, community providers, schools, higher education institutions, industry organisations and enterprises. What are the benefits of registration for an organisation s clients? Clients benefit from: national recognition of qualifications gained knowing that their training is being delivered by an organisation which meets national standards enhanced career prospects because the qualifications are based on identified industry needs access to recognition of prior learning (RPL), also known as recognition of current competence (RCC) opportunities for articulation into further training (this may include higher education). Sandar (02) So you're thinking of becoming an RTO? Page 3

4 Should your organisation become a registered training organisation (RTO) or just form a partnership with one? A key advantage of an organisation becoming an RTO is that the organisation can issue AQF qualifications and Statements of Attainment that are recognised and accepted by industry and other RTOs throughout Australia. However, many Australian businesses are developing training solutions for their staff that result in nationally recognised qualifications or Statements of Attainment by working in partnership arrangements with one or more RTOs, rather than becoming an RTO themselves. Before deciding whether to become an RTO, your enterprise should carefully consider all the available options and determine the best training solution for your organisation. The Partners in Training material (produced by each state government and available from the web) can provide a sound foundation for you to determine and develop a case for the best training solution for your organisation. It often includes some case studies, a training decision planner and checklist for your information. Who registers an RTO? Each state and territory has a registering body responsible for the national registration of RTOs. Registration in one state or territory means that an RTO is registered to deliver training in all other states and territories. ASQA has taken over responsibility for this function for particular States. Where should you register? A training organisation should register in the state or territory where its head office is located or where most of its training or assessment will occur. What is the role of the registering body? The registering body is responsible for assuring the quality of nationally recognised training and assessment delivered by a registered training organisation. This includes managing the registration of the organisation, determining the scope of registration, monitoring compliance with the Standards for Registered Training Organisations and applying any sanctions. Where an organisation wishes to deliver training and issue nationally recognised qualifications and Statements of Attainment, that organisation must first become a registered training organisation and comply with requirements and standards within the National Training Framework. How does an organisation become registered? To become registered an organisation must comply with the Standards for Registered Training Organisations and must submit to audits, as required by the registering body. The organisation must: self assess all of its operations against the Standards for Registered Training Organisations (a number of self assessment tools are available) complete relevant application forms and pay fees as required by the registering body undergo an evaluation by a registering body, including an audit across all of its operations and types of delivery, to ensure compliance with the Standards for Registered Training Organisations. Sandar (02) So you're thinking of becoming an RTO? Page 4

5 What happens next? The registering body will notify the organisation of the outcome of the registration application. If successful, the organisation will receive a registration certificate confirming it can operate as a registered training organisation normally for an initial period of 5 years. Details of the training organisation and the scope of registration will be entered on the training.gov.au website by the registering body. Can organisations be assured that information gained during the registration process will remain confidential? Registering bodies comply with the Standards for State and Territory Registering/Course Accrediting Bodies when registering a training organisation. These standards require management of any conflict of interest and include confidentiality requirements for all individuals involved in the registration process. The registering body may disclose information to other state and territory registering bodies, including information about the registration application and process, audits and any follow up action taken. Are there fees for registration? Each registering body has a fee schedule and requirements for the payment of fees. How long does registration last? Up to five years. For renewal of registration, the registered training organisation must apply to the registering body, allowing sufficient time for an audit to be completed prior to the expiry date of their current registration. Does registration allow RTOs to offer training interstate? Yes. The registered training organisation must comply with the particular legislative and occupational licensing requirements of the state or territory in which they deliver training and/or assessment. Who can deliver nationally recognised training to overseas students in Australia? A registered training organisation may offer vocational education and training to overseas students in Australia, but must first be approved for listing on the Commonwealth Register of Institutions and Courses for Overseas Students (CRICOS). These requirements are additional to the AQTF. The registered training organisation should apply for CRICOS approval from the state or territory in which they are seeking to deliver the training for overseas students. For further assistance, go to the CRICOS website. What if an organisation no longer wishes to be an RTO? The registered training organisation must advise the registering body in writing of its intention to cease operating as an RTO and discuss with the registering body arrangements for current students to complete their training and/or assessment. The RTO will also need to transfer records as required by the registering body. Some of the above has been sourced or adapted from the ASQA website, in whom the copyright is vested. Sandar (02) So you're thinking of becoming an RTO? Page 5

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