The revised Standards for Registered Training Organisations (RTOs) introduced this week represent a significant shift towards an outcome-focused and streamlined approach to Vocational Education and Training (VET) in Australia. These changes are set to come into effect in 2025, giving RTOs time to adjust to the new requirements.
To facilitate clear and outcome-focussed Standards, the revised Standards for RTOs comprises of three elements:
The Compliance Requirements (including the Fit and Proper Person Requirements and NRT Logo Conditions of Use Policy), and
The Credential Policy.
The VET Quality Framework now looks like:
Revised Standards for Registered Training Organisations
NVETR (Outcome Standards for NVR RTOs) Instrument 2025
NVETR (Standards for NVR RTOs – Compliance and FPPR) Instrument 2025
Schedule 1 - Fit and Proper Person Requirements Policy
Schedule 2 - NRT Logo Conditions of Use Policy
The Credential Policy.
Australian Qualifications Framework—which is the national policy for regulated qualifications in Australian education and training.
Data Provision Requirements 2020—which sets out the requirement for providers to supply ASQA with data upon request, and to submit quality indicator data annually
Financial Viability Risk Assessment Requirements 2021—which relate to training organisations' ability to meet financial viability requirements
Key Changes to the Standards:
Outcome-Focused Standards
The revised Standards place a stronger emphasis on high-quality outcomes for learners and employers. They are structured around four key quality areas: Training and Assessment, Learner Support, VET Workforce, and Governance. The intention is to make the expectations clearer and to better align training delivery with the needs of industry
Simplification of the Standards
One of the most notable changes is the reduction in the number of clauses from 59 (and 140 subclauses) to 23 standards across 4 quality areas:
Training and Assessment
Learner Support.
VET Workforce
Governance
This simplification helps to reduce confusion and provides clearer guidance for RTOs. The previous version of the Standards was often seen as complex and difficult to navigate, leading to inconsistent application across different providers. The more streamlined version provides clarity while maintaining the necessary rigour to ensure quality.
The Standards now focus on four key quality areas:
Training and Assessment: As mentioned, the focus here is on validating outcomes and ensuring assessments align with industry standards.
Learner Support: Simplified, but still ensuring learners have access to adequate resources.
VET Workforce: This area outlines the requirements for trainers and assessors. A significant point of contention is the removal of the industry experience requirement, which some argue could dilute the quality of training.
Governance: There is a greater emphasis on governance structures that reflect the size and complexity of the RTO, allowing for a more adaptable approach to compliance.
Compliance Requirements
In addition to the outcome standards, the Compliance Requirements aim to maintain the integrity of the VET sector by ensuring that RTOs continue to meet essential administrative and operational standards. These requirements act as a safeguard to ensure that RTOs maintain their registration and uphold the quality of their offerings. These requirements cover areas like registration maintenance, Fit and Proper Person Requirements and administrative obligations. There is a particular focus on documentation and evidence collection, ensuring that RTOs can demonstrate compliance through clear and concise records.
Credential Policy and Trainer/Assessor Requirements
A new Credential Policy outlines the requirements for the competencies of trainers and assessors. This policy works alongside the Outcome Standards to ensure that only appropriately qualified individuals are involved in delivering training and conducting validation.
Changes to VET Workforce Requirements: One of the more debated changes is the removal of the requirement for current industry experience for trainers, aimed at addressing the current shortage of qualified trainers. However, this has raised concerns about its potential impact on training quality. However, this change was made in response to the trainer shortage, making it easier for RTOs to hire qualified personnel, though it places a greater responsibility on supervision and validation processes to ensure assessments remain rigorous.
Governance and Operational Flexibility
The revised Outcome Standards and associated guidelines and policies provide clearer guidance on governance but also allow for flexibility depending on the size and scope of the RTO. This means that smaller RTOs can adopt governance practices that are proportionate to their operations, while larger, more complex providers will need to maintain more robust structures. This change helps to reduce the burden on smaller providers while ensuring that all RTOs maintain appropriate oversight.
Comparing Revised Standards to 2015 Standards
The 2015 Standards were focused heavily on procedural compliance, often leading to a “tick-box” culture where RTOs were more concerned with meeting administrative requirements than with delivering quality training outcomes. While these standards did ensure some level of consistency, they were criticised for being overly prescriptive and complex, making it difficult for RTOs to understand how to apply them effectively.
In contrast, the Revised Standards are more streamlined and flexible, allowing RTOs to focus on delivering high-quality, outcome-based training. The shift to a clearer, more prescriptive set of clauses simplifies compliance while ensuring that the focus remains on the quality and relevance of training.
Transitioning to the New Standards
Successfully transitioning to the revised Standards for RTOs involves several critical steps to ensure compliance while maintaining quality outcomes for learners. These steps integrate outcome-focused processes, workforce considerations, and governance improvements.
Familiarisation with the Outcome-Based Approach: The revised Standards shift from process-driven to outcome-focused compliance. This change requires RTOs to align their training and assessment strategies closely with industry outcomes and learner needs. It's essential for RTOs to:
Engage with stakeholders to ensure that their training products meet industry demands.
Continually monitor and adjust training and assessment practices to ensure that learners gain industry-relevant competencies and qualifications
Implement systems for gathering feedback and measuring learner progress, using this data to refine training delivery.
Adapting to the Credential Policy: The new Credential Policy outlines the qualifications necessary for trainers and assessors, including their industry knowledge. RTOs need to ensure that their staff:
Meet the required credentials, both in terms of industry skills and teaching expertise.
Engage in continuous professional development to stay current with industry practices and teaching methodologies.
Have access to ongoing support and training as they transition to these new requirements.
It is strongly suggested that the RTO implement a best-practice model and ensure trainers and assessors adequately maintain current industry skills relevant to their delivery programs.
Updating Governance Practices: Governance under the revised Standards requires a focus on leadership, accountability, and risk management. RTOs must ensure:
Clear roles and responsibilities are defined within the organisation, particularly for staff involved in compliance and quality assurance
Regular reviews and audits of governance structures to ensure they align with the size and complexity of the RTO.
Leadership fosters a culture of continuous improvement, where feedback is actively sought and used to enhance operations
This governance model supports the integrity of VET delivery by ensuring that risk management processes are robust and that continuous improvement is embedded within the organisation’s culture.
These changes are not simply procedural but demand a cultural shift within RTOs to focus on delivering high-quality, measurable outcomes for learners. To transition successfully, RTOs must ensure that their operations, governance, and workforce are benchmarked from a Quality Management System that is clearly aligned with the new Standards.
If you require any support, please download our FREE RTO Standards Compliance Checklist and feel free to contact us and we will be happy to assist your transition.
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