RTOs Face Greater Scrutiny Under New Standards
Amid claims that numerous unscrupulous Registered Training Organisations (RTOs) have been rorting the system, and growing pressure to improve the effectiveness and integrity of the VET system, the Government has revised the Standards for Registered Training Organisations. The new standards, which come into effect from July 1st, 2025, aim to strengthen the focus on quality outcomes for students and employers, provide greater clarity and allow for more flexibility and innovations in training delivery. Importantly, the revised Standards provide a clearer framework of the requirements RTOs are expected to meet and the outcomes they are expected to deliver.
Improved Student Outcomes
The revised Standards place a greater emphasis on student outcomes, meaning RTOs will be required to show that their training directly leads to successful career outcomes. Providers that promise job outcomes but fail to deliver will be weeded out if they can’t demonstrate clear pathways to employment for students.
Stricter Rules for Advertising and Recruitment
Under the new regulations, RTOs also face stricter rules in relation to advertising and recruitment processes, in response to claims that some organisations engage in aggressive and misleading marketing tactics, promise unrealistic job prospects or enrol students in ‘fake courses.’ Such training organisations will now face more penalties and potentially lose access to funding or the ability to operate.
Qualified Trainers and Assessors
Every Australian Registered Training Organisation offering Recognition of Prior Learning will be required to conduct more stringent checks on their trainers and assessors, and prove that they have the right qualifications, industry experience and receive ongoing professional development. This will put RTOs that employ unqualified or underqualified trainers under pressure to improve their staff standards, or risk losing their accreditation.
Stronger Student Protection Measures
RTOs that fail to properly support students or address their complaints are also in the firing line, with heavier penalties for providers who neglect student welfare. Under the new Standards, students will have better access to information about their rights and available support.
Increased Accountability for VET Funding
The new rules also address concerns that some RTOs have misused government funds or enrolled students in low-quality courses that don’t align with real job opportunities. More stringent checks on how funding is spent will be conducted, and providers will be required to demonstrate that they are delivering programs that provide real value and meet industry standards.
With stronger penalties, loss of accreditation, financial consequences and damage to their reputation all possible for training organisations that fail to comply, RTOs who engage in dishonest, subpar or misleading practices are officially on notice.
