Regulatory approach

The Australian Skills Quality Authority (ASQA) exercises its responsibilities based on:

• a robust framework of legislation and standards
• a risk-assessment focus
• active engagement with industry
• a rigorous audit methodology
• fairness and transparency
• promoting informed consumer choice
• accountability
• accessibility.

Legislation and standards

ASQA was established through the enactment of three pieces of legislation passed on 24 March 2011:

• the National Vocational Education and Training Regulator Act 2011 
• the National Vocational Education and Training (Consequential Amendments) Act 2011 
• the National Vocational Education and Training Regulator (Transitional Provisions) Act 2011.

The legislative framework established by this, and related, legislation:

• gives ASQA the power to audit an RTO at any time
• gives ASQA the power to apply sanctions (including applying conditions to, suspending or cancelling a registration)
• allows providers to seek a review of ASQA decisions.

ASQA will regulate according to the Standards for NVR registered training organisations. The Ministerial Council for Tertiary Education and Employment, informed by advice from the National Standards Council, approves these standards.

All training organisations applying to register, or RTOs applying to extend their scope, will have their applications assessed against the standards. All courses accredited must meet the standards for course accreditation.

ASQA utilises a range of legislative instruments in undertaking its operations.

Key among these are instruments relating to:

• the financial viability of registered training organisations (Financial Viability Risk Assessment Requirements 2011)
• persons that have some control or influence over the management of RTOs (Fit and Proper Person Requirements)
• ensuring nationally consistent, high-quality training and assessment across Australia’s VET system (Standards for NVR Registered Training Organisations 2011)
• formally identifying the requirements for accrediting VET courses (Standards for VET Accredited Courses 2011)
• Standards for VET Regulators performing functions under the National Vocational and Training Regulator Act 2011, and
• the setting of fees and recovery of costs, incurred by ASQA, in performing its functions (Australian Skills Quality Authority instrument fixing fees No. 1 of 2011).

Legislation and standards for delivery to international students

Standards for courses and delivery to international students in Australia are established in:

• the Education Services for Overseas Students Act 2000, and
• National Code of Practice for Registration Authorities and Providers of Education and Training to Overseas Students 2007.

These standards must be met.

Increased emphasis on risk

A national regulatory system promotes consistency and quality in Australia’s training sector. As the national regulator, ASQA works to ensure compliance across the sector. ASQA is increasing the focus on high-risk providers and has a range of regulatory powers.

ASQA's regulatory approach is based on risk assessment. ASQA particularly examines those RTOs, courses and qualifications rated as higher risk. Non-compliance can incur a range of action (including fines, suspension of registration and closure).

ASQA continually assesses risks presented by RTOs, courses, qualifications and the VET system. This analysis is informed by:

• the Risk Assessment Framework (s.190 of the National Vocational Education and Training Regulator Act 2011)
• structured risk assessments of initial, renewal and scope applications
• advice from auditors on trends in non-compliance
• feedback from industry regulators and associations
• complaints data
• information provided by Australian, state and territory governments, and
• analysis of data, including data on student and employer outcomes, and visa data.

Read more about ASQA’s approach to managing risk in the VET sector. 

Stronger regulatory powers

ASQA has a range of powers including the application of sanctions, and prosecutions involving civil and criminal penalties, to effectively regulate training providers.