Summary —

After an intense period of lobbying, the Independent Tertiary Education Council Australia (ITECA) has secured amendments to reforms of the National Vocational Education and Training Regulator Act 2011 (Cth).  In a great example of member-driven advocavy, the legislative change secured by ITECA prevents the Australian Government from imposing a permanent ban on the establishment of new Registered Training Organisations (RTOs).

Key Issues —

Through the National Vocational Education and Training Regulator Amendment (Strengthening Quality and Integrity in Vocational Education and Training No. 1) Bill 2024, the Australian Government aimed to introduce several changes to the regulatory framework for RTOs.

The government's stated goal was to enhance 'quality' in the skills training system; however, many legal experts and skills training sector stakeholders argued that the existing regulatory framework could achieve this if effectively utilised.  Notwithstanding this fact, the legislation passed by the Australian Parliament on 21 March 2024 include the changes set out below.

		Legislated Reforms — National Vocatiotion Education and Training Regulator Act 2011 (Cth)
		◾	Empower the Minister, with the agreement of State and Territory Skills Ministers, to require ASQA to pause the acceptance and processing of new RTO applications (or those for one or more classes of RTO).
		◾	Cause an RTO’s registration to automatically lapse where the provider has not delivered training and/or assessment for twelve months.
		◾	Prevent RTOs from expanding their course offering if they have been operating for less than two years.
		◾	Expand offence and civil penalty provisions to cover a broader range of false or misleading representations by RTOs about their operations.
		◾	Increase five-fold maximum penalties for engaging in egregious conduct that breaches relevant offences or civil penalties under the Act.
		◾	Prevent RTOs from expanding their course offering if they have been operating for less than two years.

ITECA firmly supports measures to enhance the quality of the skills training system. However, it viewed this legislation as an excessive response to a few isolated instances of poor quality, especially since the legislation doesn't address quality issues reflected in the sustained low completion rates achieved by public sector providers and ignores the great outcomes achieved by independent RTOs.

In a great example of what member-driven advocacy can achieve. working with the Opposition, minor parties and independent parliamentarians in both the House of Representatives and the senate, ITECA successfully lobbied for safeguards to be included in the legislative amendment.  They are as set out below.

		ITECA's Successful Legislative Changes — National Vocatiotion Education and Training Regulator Act 2011 (Cth)
		◾	Place a twelve month limit on the Australian Government’s ability to ban the establishment of new RTOs; and
		◾	If such a ban is introduced, publish advice that describes the ban and provides an explanatory statement for the determination.

ITECA continues to express concerns with other aspects of the National Vocational Education and Training Regulator Act 2011 (Cth) and will persist in its efforts for further reforms.

“The legislative amendments represent another significant achievement of ITECA’s member-driven advocacy, showcasing the effectiveness of collaborative efforts by RTOs that hava a demonstrated commitment to quality,” said Troy Williams, ITECA Chief Executive.

An update on the legislative changes will be provided at the ITEC24 Conference on the Gold Coast over 5-7 June 2024, so be sure to book your tickets today.

Getting Involved —

The ITECA Vocational Education and Training Policy Committee and afford members the with the opportunity to consider this matter.    ITECA Membership – It’s great time to get involved.

Further Information — This advice is one of the many ways that ITECA empowers your team with the information to make sound business decisions.  If you'd like to discuss this matter further, the ITECA team would value the opportunity to talk to you.  Simply send an email to vocation.training@iteca.edu.au or telephone 1300 421 017.  Stay up to date via Twitter, Facebook and LinkedIn. Disclaimer & Copyright — This information may be reproduced in limited circumstances under a Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 License.  Information published on this webpage is intended for general information only and no warranty is providers as to accuracy or completeness thus any reliance you place on this material is therefore strictly at your own risk.

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