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You are required to notify us if your organisation enters voluntary administration or liquidation. You are also required to notify us where there are risks of administration or liquidation may be emerging.
We need to be assured you have made proper arrangements for the completion or transfer of all current students.
Voluntary administration
When a provider enters voluntary administration, the business enters an arrangement where an administrator takes control, evaluates issues and makes recommendations.
The business may continue to trade or cease trading during voluntary administration.
Liquidation
Liquidation occurs when an organisation is no longer financially viable. The owner has either voluntarily entered liquidation, or a creditor has requested liquidation.
When the control of a provider transfers to a liquidator, it must cease trading.
Under the Education Services for Overseas Students Act 2000 (ESOS Act), when an organisation enters liquidation and a winding up order is in place, registration is automatically cancelled by force of law. This applies to CRICOS and ELICOS providers.
Risks to financial viability
Providers must notify ASQA if they become aware of circumstances that may pose a risk to the organisation's ongoing financial viability, even if the organisation has not entered voluntary administration or liquidation.
Examples of circumstances that may indicate a risk to financial viability include the loss of a major funding source or contract, difficulties meeting financial commitments or other significant business disruptions that may affect the provider’s ability to continue operating or meeting its obligations to students.
Providers should notify ASQA as soon as practicable after becoming aware of a risk that may significantly affect the organisation's financial viability or its ability to deliver training and assessment services and support current students.
Notifying ASQA of these changes
RTOs must advise ASQA as soon as practicable before the change in financial status takes effect or within 10 business days after the event.
CRICOS and ELCIOS providers have a maximum of 10 business days to tell us about a change in financial status.
To notify us, complete a ‘Notification of material change or event’ form in asqanet. You must select the ‘Change to financial administration status’ option in the form.
Legal obligations
It is the responsibility of appointed administrators and liquidators to ensure obligations under the NVR and/or ESOS Acts are understood, prioritised and fulfilled in a timely manner. These obligations ensure students are appropriately supported and not unfairly disadvantaged by the closure.
These obligations are detailed in full on our webpage Closure Obligations for RTOs.