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Last updated
29 October 2026

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Clause 15

Annual declaration on compliance

Requirements:

  1. An NVR registered training organisation must submit an annual declaration on compliance with its obligations under the Act for each annual reporting period in which the organisation is registered.
  2. An NVR registered training organisation’s annual reporting period is the period of 12 months that is specified by the National VET Regulator as the organisation’s annual reporting period.
  3. An annual declaration on compliance submitted by an NVR registered training organisation must be in the approved form as published on the National Register by the National VET Regulator from time to time.

Note: Section 191A of the Act permits this instrument to make provision in relation to a matter by applying, adopting or incorporating any matter contained in another instrument or other writing as in force or existing from time to time. 

  • You can demonstrate how you use the Annual Declaration on Compliance (ADC) as an additional opportunity to reflect upon your RTO’s systems, practices and processes, and to inform future improvements to your operations.
  • You disclose to ASQA through your ADC responses any self-identified non-compliance and what rectification actions you are taking.
  • You ensure the preparatory work you do before completing the ADC covers your RTO’s entire scope of registration, including all services delivered by third parties on your behalf.  
  • You ensure that only the CEO, as the person legally responsible for the RTO’s registration, submits the declaration to ASQA.  
  • Where you have third party arrangements, your CEO completes the ADC having also verified the compliance of those third parties’ systems, practices and processes in relation to the services they deliver on your RTO’s behalf.  
  • You ensure that you retain evidence to support any answers provided in the ADC.  

  • Completing and submitting the ADC without adequately verifying your RTO’s compliance with each obligation.
  • Not ensuring your CEO has authenticated all responses in the ADC before submitting them.
  • Declaring full compliance on the ADC even though you have identified non-compliances internally – i.e. failing to disclose.
  • Failing to complete and submit the ADC within the submission period notified by ASQA.
  • Not requesting or reviewing evidence as part of your ADC submission to confirm services delivered by your third parties are complying with the relevant obligations.  
  • Using artificial intelligence (AI) generated responses for the ADC which do not accurately reflect your RTO’s actual operations, evidence, practices or compliance arrangements. 

 

Clause 16

Notification of material changes

Requirements:

  1. An NVR registered training organisation must notify the National VET Regulator of the occurrence of an event that would significantly affect the organisation's ability to comply with any of its obligations under the Act.
  2. A notice under subsection (1) must be given within 10 business days after the event occurs.
  3. An NVR registered training organisation must notify the National VET Regulator of
    1. any prospective changes to the ownership of the organisation as soon as practicable before the change takes effect; or
    2. any prospective or actual change in relation to a governing person of the organisation:
      1. if the change cannot be determined until it takes effect - within 10 business days of the change taking effect; or 
      2. otherwise - as soon as practicable before the change takes effect.
  4. A notice under subsection (1) or (3) must be provided to the National VET Regulator in writing or electronically.
  5. After giving notice under subsection (1) or (3) an NVR registered training organisation must provide any further information relating to the notice as soon as practicable, if requested by the National VET Regulator. 

  • You can demonstrate how your systems ensure that you notify ASQA within 10 business days after the occurrence of any event that significantly impacts your RTO’s ability to comply with its legislative obligations.
  • You have systems and processes in place to ensure that:
    • any prospective material changes to your RTO’s ownership are notified to ASQA as soon as practicable before the change takes effect
    • any prospective or actual change to governing persons are notified to ASQA as soon as practicable before the change takes effect, or, where a change cannot be determined until it takes effect, notify ASQA within 10 business days of the change taking effect.
  • If requested by ASQA, you ensure that you provide information and evidence in relation to your material change application in a timely manner.
  • Where you are uncertain about whether an event or change may significantly affect your RTO’s ability to comply with its obligations, you proactively engage with ASQA to disclose this information in a timely manner. 

  • Attempting to conceal or withhold information in material change notifications, particularly where there may be a risk to students – for example, financial viability issues.
  • Delaying notifications, particularly where a matter has been known, emerging or developing over time.
  • Failing to update key personnel changes and contact details in ASQA’s systems. 

 

Clause 17

Third party arrangements

Requirements: 

  1. An NVR registered training organisation must ensure that where services are delivered by a third party on the organisation’s behalf, the provision of the services is governed by a written agreement that:
    1. is entered into by the organisation and third party as soon as reasonably practicable prior to the third party delivering any of the services set out in the agreement;
    2. requires the third party to cooperate with the National VET Regulator where the Regulator conducts any audit of the NVR registered training organisation’s operations;
    3. requires the third party to provide accurate responses to requests for information from the Regulator relevant to the third party’s delivery of the services;  
    4. prohibits the third party from:
      1. using the NRT logo;
      2. using the organisation’s branding;
      3. issuing any AQF certification documentation; and
    5. contains the following particulars:
      1. the business or trading names of the parties to the agreement;
      2. the dates on which the agreement will commence and end;
      3. all the parties’ obligations concerning the delivery of the services; and
      4. an entitlement for the organisation to regularly monitor the quality of the services being delivered by the third party.  
  2. An NVR registered training organisation must notify the National VET Regulator of any written agreement made pursuant to subsection (1) within:
    1. 30 calendar days of the agreement being entered into or prior to the obligations under the agreement taking effect, whichever occurs first; and
    2. 30 calendar days of the agreement ending. 

  • You can demonstrate that all your third party written agreements include all information stipulated under the Standards.  
  • Your written agreements clearly specify the roles and responsibilities of each party and how you monitor the performance of the third party to ensure the quality of services and compliance with the Standards.
  • You can demonstrate the systems and processes you use to identify emerging risks and promptly rectify non-compliance by your third party providers.
  • You have evidence that a written agreement was in place with each of your third parties before they commenced delivery of any services.
  • You can demonstrate how you routinely review the suitability of your third party arrangements and maintain currency of your written agreements.
  • You ensure your staff understand the definition of third parties and when a written agreement is required.
  • You ensure that your third parties are aware of their ongoing requirement to cooperate with ASQA.
  • You can demonstrate how you make your third parties aware of their obligations under the Standards and any other legislative or regulatory requirements that apply to the service/s they are delivering on your RTO’s behalf.
  • You can demonstrate the protocols you have in place to communicate with your third parties regarding:
    • legislative changes that may impact their service
    • changes in delivery
    • expectations around providing support for student wellbeing and managing complaints.
  • You can demonstrate how you authenticate the credentials and practices of trainers and assessors engaged by your third party providers.
  • You ensure that VET students are made aware of any third party involvement in their training and assessment, including that their AQF certification documentation will be issued by your RTO (not the third party).
  • You have processes in place to notify ASQA within the required timeframe whenever you enter into, or end, a third party arrangement. 

  • Failing to notify ASQA of new and ceasing third party agreements.
  • Failing to undertake due diligence on an organisation’s commitment, capability and capacity to deliver quality training and assessment before engaging it as a third party – for example, but not limited to:
    • failing to undertake due diligence checks in relation to the fitness and propriety of relevant staff of the third party organisation
    • not comprehensively assessing the capacity of the third party to provide training support services and wellbeing support services.
  • Assuming that outsourcing services to third parties will release your RTO of its compliance obligations.
  • Allowing services to be provided by a third party before the written agreement has been signed by both parties.
  • Failing to invest in dedicated resources to monitor the quality and compliance of services provided by your third parties. This is of particular concern where you have many third party arrangements.
  • Not being transparent with students about the role and responsibilities of your RTO versus those of the third party provider.  Failing to inform students about how they can provide feedback or make a complaint about a third party engaged by your RTO.
  • Engaging offshore-based third parties that are unaware of relevant Australian laws and the VET Quality Framework. 

 

Clause 18

Prepaid fee protection measures

Requirements:

  1. Where an NVR registered training organisation or third party receives prepaid fees from or on behalf of an individual in excess of $1500 in relation to the same VET course (the threshold prepaid fee amount), the organisation must:
    1. where the organisation is a government entity or an Australian university – comply with the requirements set out in subsections (2) and (3); or
    2. where the organisation is any other NVR registered training organisation – implement one or more of the arrangements set out in subsection (4).

Requirements for government entities and Australian universities

  1. The NVR registered training organisation must have a policy in place for circumstances where the organisation is unable to provide the services to which the threshold prepaid fee amount relates (prepaid fee policy).  
  2. An NVR registered training organisation’s prepaid fee policy must specify how an individual who has prepaid will:
    1. be placed into an equivalent course at a location suitable to the individual and receive all services for which the individual has prepaid at no additional cost to the individual; or  
    2. be refunded the prepaid fees for services yet to be delivered which are in excess of the threshold prepaid fee amount.

Requirements for other NVR registered training organisations

  1. The NVR registered training organisation must implement one or more of the following arrangements:
    1. an unconditional financial guarantee from a bank operating in Australia, provided:
      1. at all times, the guarantee is at least equal to the total amount of prepaid fees held by the organisation in excess of the threshold prepaid fee amount; and 
      2. the costs of establishing and maintaining the guarantee are met by the organisation. Note: For example, where an RTO receives prepaid fees of $2000 from three individuals (totalling $6000), the guarantee must be at least equal to $1500 (i.e. $500 multiplied by three).
    2. a current membership with a tuition assurance scheme operator which, if the organisation is unable to provide services for which the individual has prepaid, must ensure:
      1. the individual will be placed into an equivalent course at a location suitable to the individual and receive all services for which the individual has prepaid at no additional cost to the individual; or
      2. if an equivalent course cannot be found – the individual will be refunded the prepaid fees which are in excess of the threshold prepaid fee amount.
    3. any other fee protection measure approved by the National VET Regulator.  

  • You can show how your prepaid fee policy ensures that students are adequately protected financially in accordance with this requirement.  
  • You maintain adequate controls over how withdrawals can be made from your protected account and by whom – for example:
    • multiple signatories for withdrawals
    • ensuring administrative staff are aware that the protected account is only to be used to refund a student, not for other operational expenses.
  • You ensure prepaid fees received through a direct enrolment are protected no matter how the fees are collected, including where they are collected by a third party loan provider or via online payment instalments.
  • Where you choose to hold an unconditional financial guarantee from a bank operating in Australia, you ensure that:
    • the guarantee is structured so that you can promptly refund students’ prepaid fees in excess of $1500 in circumstances where you are no longer able to deliver the training; and
    • you can demonstrate how the amount of the guarantee was determined; and
    • this level is always greater than the amount of fees required to be protected.
  • Where you choose to implement an alternative fee protection measure, you ensure that:
    • you apply to ASQA for approval in writing, including details of how the measure will be implemented; and
    • the measure demonstrates an equivalent level of fee protection as that provided by an unconditional financial guarantee from a bank operating in Australia; and
    • you wait until you receive approval from ASQA before collecting fees in excess of $1500, unless you already have another approved fee protection measure in place in the interim.
  • If you utilise the Tuition Protection Service to protect fees paid by international students, you ensure that you have an alternative approved fee protection measure for domestic VET students.  
  • If you utilise the tuition protection arrangements under the VET Student Loans Act 2016 for VET Student Loans (VSL), you ensure that you have an alternative fee protection measure for non-VSL students.  
  • You ensure that your refund policy, that students are provided with at the time of enrolment, is reflective of the prepaid fee protection requirements.    
     

  • Accepting prepaid fees before determining the suitability of a prospective student for the course they are enrolling in.
  • Failing to ensure that your fee protection method covers all applicable student cohorts within the scope of your operations.  
  • Incorrectly assuming that multiple pre-paid instalments of less than $1500 each for the same VET course will avoid the threshold prepaid fee amount and requirements associated with it.
  • Not monitoring the protected account to ensure it is always equal to or greater than the amount of fees required to be protected.
  • Failing to ensure that prepaid fees above $1500 that are collected through external loan providers, including ‘buy now, pay later’ providers, are appropriately protected.
  • Using the protected amounts and accounts to pay for business operating expenses.
  • Failing to have adequate controls over who within the RTO can make withdrawals from the protected account.
  • Failing to limit online payment gateways to $1500 where an RTO states it will not collect more than $1500 in prepaid fees.  

 

Clause 19

Public liability insurance

Requirement:

An NVR registered training organisation must hold public liability insurance that covers all the organisation’s operations for the entire period in which the organisation is registered under the Act.  

  • You have evidence of how you determine appropriate and sufficient public liability insurance for your operations.
  • You have systems and processes in place to ensure that any additions to scope including activities such as work-integrated learning or community-based learning, are covered under your public liability insurance.  
  • You can demonstrate evidence of your public liability insurance, such as a certificate of currency, which:
    • identifies that your RTO and its full scope of operations is covered by the policy; and  
    • confirms that all VET students’ activities are covered, or that there are no restrictions on the activities covered.  

  • Failing to ensure your public liability covers your entire scope of operations, including where training is delivered online.

 

Clause 20

Compliance with laws

Requirements:

An NVR registered training organisation must comply with all applicable Commonwealth, State and Territory laws, including, for example, by ensuring:

  1. personal information is collected, used and disclosed by the organisation in accordance with all applicable privacy laws; and
  2. the organisation complies with all applicable requirements under the Student Identifiers Act 2014.

Note: There are a range of laws that may be applicable under this section. The examples provided in paragraphs (a) and (b) are for illustrative purposes  

  • You can demonstrate how you identify all Commonwealth, State and Territory laws that are applicable to your RTO’s operations (e.g. the Work Health and Safety Act in your jurisdiction/s).
  • You have systems and processes in place to ensure that your staff have knowledge of, and comply with, all applicable laws at all times, including any changes to legislative and regulatory requirements that may affect the services delivered.
  • You ensure that the design of training and assessment tasks does not breach the privacy of any individuals.
  • Before adding a training product to scope, you ensure you have checked whether the training product is required to be approved by an industry regulator or if there are additional licensing requirements to be able to deliver and assess the training product.
  • Where your operations involve children (e.g. students under the age of 18), you ensure your organisation and relevant staff are fully compliant with child safety laws.
  • You take active steps to protect VET students’ personal and sensitive information and ensure the secure storage of VET students’ documentation and student identifiers. 

  • Not identifying and considering all legislative and regulatory requirements across your entire scope of operations.
  • Failing to train your staff on essential legislative obligations, such as privacy laws and work health safety obligations.
  • Failing to gain the consent of all individuals that may be involved in an assessment activity (e.g. undertaking a personal care assessment activity with an individual where that individual has not given consent).
  • Assessment activities that put students at risk of breaching the law (e.g. recorded assessment activities involving vulnerable people electronically shared with your RTO).  

 

Self-assurance questions

  1. How do you ensure you are completing and submitting the Annual Declaration on Compliance within the relevant reporting period?
  2. How do you use the ADC process to demonstrate to ASQA that you self-disclose non-compliance, as well as your organisation’s rectification and continuous improvement efforts?
  3. How do you monitor your operations to identify whether there are, or likely to be, material changes that require notification to ASQA?
  4. What due diligence do you undertake before engaging a particular third party provider? What verification do you undertake of their trainers and assessors’ qualifications?
  5. How do you monitor your third parties to ensure they comply with all relevant legislative and regulatory requirements?
  6. How do you ensure you have sufficient protected funds to be able to refund students promptly, if required?
  7. How do you ensure your public liability insurance is adequate and covers all VET students in all delivery settings?
  8. How do you identify the Commonwealth, State and Territory laws that apply to your operations? How do you ensure your staff and third party providers comply with these laws, including privacy laws and child protection laws?
  9. How do you monitor changes to legislative and regulatory requirements that may affect the services that you deliver? 

Case study

Notifying ASQA of a Material Change  

JJJ Training Pty Ltd (JJJ) is a medium-sized RTO delivering qualifications across several training packages. During an internal quality review, JJJ discovers that a recently implemented student management system is not correctly recording workplace assessment outcomes. As a result, a number of students have experienced delays in receiving certification documentation.  

JJJ’s CEO and compliance manager investigate the issue and determine that although only a small group of student records appear to have been affected so far, the system error applies across multiple qualifications and cohorts. If not addressed, the issue could affect JJJ’s ability to maintain accurate records, issue certification documentation and meet its compliance obligations.  

JJJ assesses the issue as a material change because it represents a significant compliance risk that is likely to affect its ability to comply with regulatory requirements. Rather than waiting until the next Annual Declaration on Compliance, the RTO notifies ASQA as soon as the risk is identified and implements corrective actions, including system remediation, audits of student records and additional staff training.  

JJJ also contacts affected students, issues outstanding documentation and regularly monitors the effectiveness of its corrective actions. Through this process, JJJ can demonstrate proactive management of an emerging compliance risk.  

  1. How are Annual Declaration on Compliance (ADC) submissions and declarations evaluated and used? Do they have an impact on risk and audit activity?  

    ADC submissions are reviewed as part of our risk-based and intelligence-led approach to regulation. They help identify sector trends, emerging issues and areas where providers may require further engagement. While ADC responses may be considered alongside other intelligence sources, a self-identified non-compliance does not automatically result in an audit or regulatory activity. Providers that demonstrate effective self-assurance by identifying issues, being transparent about them, and taking appropriate corrective action are generally viewed more favourably than those that fail to identify known issues. The ADC is intended to support honest self-reflection and continuous improvement.

     

  2. What is the rationale behind including specific questions on antisemitism in the ADC? Are RTOs’ existing general equity, anti-discrimination, and harassment policies sufficient to demonstrate compliance?

    The inclusion of specific questions on antisemitism in the ADC reflects broader government efforts to address antisemitism and promote student safety, including through the work of the Antisemitism Education Taskforce. Under the 2025 Standards, providers must ensure learning environments are safe and free from discrimination and racism, particularly under Outcome Standards 2.5 (Diversity and Inclusion) and 2.6 (Wellbeing). The questions are intended to support providers to reflect on how they are meeting these existing obligations, rather than introducing new compliance requirements.

    Existing equity, diversity and inclusion, anti-discrimination, bullying, harassment, wellbeing and complaints policies may be sufficient to demonstrate compliance if they are current, implemented effectively, and address discrimination risks. The focus is not only on having policies in place, but also on ensuring staff can recognise and respond to issues such as antisemitism, manage complaints appropriately, and access relevant guidance and support.

     

  3. The reduction from 90 days to 10 business days for material change notifications might be challenging for large organisations with lengthy escalation processes. How would we comply if we are unable to get the Financial Viability Risk Assessment (FVRA) completed and submitted within the 10 business days?

    The reduction from 90 days to 10 business days is to ensure that ASQA is aware of material changes in a timely manner and can assess the extent to which they will affect the likelihood of the provider complying with its obligations.

    Importantly, under the Compliance Requirements, a provider must notify ASQA of any prospective changes to the ownership of the organisation as soon as practicable before the change takes effect. This would usually be more than 10 business days before the event. If a provider is unable to get the FVRA completed and submitted as part of the material change notification or within the prescribed timeframe, they should notify ASQA of this along with a proposed date of submission for the FVRA.

     

  4. When should a ‘compliance risk’ be reported as a material change versus as non‑compliance in the Annual Declaration on Compliance, particularly where students are impacted but not necessarily overall compliance?

    The key distinction is timing and impact. A material change should be reported when an issue significantly affects, or is likely to affect, the provider's ability to comply with its obligations. This includes emerging compliance risks and should be reported as soon as they are identified.

    The Annual Declaration on Compliance is retrospective. It is used to disclose non-compliance identified during the previous 12 months and the actions taken to address it.

    Where students are impacted, providers should consider whether the issue is isolated and being effectively managed, or whether it indicates a broader or systemic risk to compliance. Isolated issues will generally be addressed through the Annual Declaration, while systemic issues that affect the provider's ability to meet its obligations are more likely to constitute a material change.

     

  5. The 2025 Standards refer to third parties as "persons". Can you clarify whether this term is meant to include organisations or just individuals? How should RTOs interpret this in the context of contracting external entities like consulting firms?

    Clause 7 of the Compliance Requirements note that ‘Section 2C of the Acts Interpretation Act 1901 provides that the term “person” includes a body politic or corporate as well as an individual’. This confirms third parties include both organisations and individuals.

     

  6. What are other types of third party arrangements outside of the delivery of training and assessment?

    The 2025 Standards define a third party as any person who has an arrangement with a provider to deliver services, but does not include employees of the organisation, experts engaged by the organisation or any government agencies and government funded agencies that refer VET students to the organisation and do not receive any payment from the organisation for doing so (noting that Section 2C of the Acts Interpretation Act 1901 provides that the term “person” includes a body politic or corporate as well as an individual). Services are defined as training and assessment, training support services (excluding counselling, mediation, and information and communication technology services) and any activities related to the recruitment of students including marketing, enrolment, induction, or the collection of fees.

    Providers should use these definitions to assist in the identification of their third parties.

    Examples of a third party: Education agents, brokers, services procured directly with a wellbeing service provider (eg. EAP service), VET delivered in secondary schools.

    Examples of what would not constitute a third party: individual trainers and assessors hired on a contractual or labour hire basis, lease agreements, indirect referrals to an external wellbeing service provider, homestay or boarding service provider, learning management system, student management system, listed company that owns the RTO.

     

  7. Are industry experts classified as third party arrangements?

    The definition of third party means any person who has an arrangement with an RTO to deliver services, but excludes employees of the organisation, experts engaged by the organisation or government agencies and government funded agencies that refer VET students to the organisation and do not receive any payment from the organisation for doing so.

     

  8. The 2025 Standards indicate that third parties cannot use the organisation’s (RTO’s) branding. Does this apply to assessments, learning resources, forms and marketing materials?

    It is critical that there is transparency for students in relation to the role of the RTO and the role of any third party in the delivery of their training and assessment. A third party cannot attempt to mislead VET students by marketing itself as the RTO. The RTO's branding must not be used to conceal the fact that a third party is involved in the delivery of services, nor should the student only be familiar with the third party’s branding and not that of the RTO.

     

  9. How frequently should we be monitoring our third parties? Is this quarterly, biannually or annually?

    Standard 4.2 requires that providers must demonstrate they have a system in place for ensuring any third parties meet the requirements of the Standards for RTOs and are aware of their obligations under these instruments. This means providers need to ensure third parties are complying with the requirements at all times.

     

  10. Are there plans to increase the $1,500 upfront fee limit, adjust it for inflation, and what are the current rules for charging more than this, including bank guarantees?  

    The $1,500 threshold is set by the Department of Employment and Workplace Relations (DEWR) and was not changed as part of the 2025 Standards.  

    Where a provider collects more than $1,500 in prepaid fees from a student, it must have an approved fee protection arrangement in place, such as a bank guarantee or other compliant fee protection mechanism. The arrangement must protect prepaid fees above the threshold amount if the provider is unable to deliver the services.  

     

  11. Do the prepaid fee protection measures extend to employers that pay for training on behalf of their staff?

    The protection of prepaid fees has not been expanded to include employers. The wording ‘on behalf of’ refers to circumstances such as a parent or spouse paying on the student’s behalf. Prepaid fees collected from an employer on behalf of its staff do not need to be protected under this requirement as they will be covered by terms under the commercial agreement or contract.