VET regulators – provider market Regulators’ market share of RTOsas at 31 December 2014

VET regulators – Victorian providers Regulatory responsibility as at 1 July 2011 – 31 December July July July July Dec 2014

ASQA’s regulatory activity update Between 1 July 2011 and 31 December 2014 ASQA received 24,159 applications. o 83% were for change of scope o 10% were for renewal of registration As at 31 December 2014 ASQA had completed 23,575 (96.7%) of these applications. Between 1 July 2011 and 31 December 2014 ASQA received 6,495 applications from Victorianproviders o 88% were for change of scope o 7% were for renewal of registration As at 31 December 2014 ASQA had completed 6,332 (97.4%) of these applications ASQA’s regulatory activity 1 July 2011 – 31 December2014

ASQA’s regulatory activity update ASQA has refused 669 applications o 142 initial applications, 134 renewal applications and 393 change of scope applications ASQA has cancelled the registration of 83 providers, suspended all or part of the registration of 129 and issued 351 notices of intention to cancel/suspend a provider’s registration. 6.1% of applications from existing providers to re-register have been refused and more than 15% of applications fromorganisationsseeking to establish a new provider have also been refused. ASQA’s regulatory activity 1 July 2011– 31 December2014

ASQA’s regulatory activityupdate – Victorian providers 1 July 2011 – 31 December2014 ASQA has refused 196 applications o 27 initial applications, 49 renewal applications and 120 change of scope applications ASQA has cancelled the registration of 21 providers, suspended all or part of the registration of 18 and issued 85 notices of intention to cancel/suspend a provider’s registration. 11.9% of applications from existing providers to re-register have been refusedand 16.8%of applications fromorganisationsseeking to establish a new provider have also been refused.

ASQA’s regulatory activity update

SNR 15Quality training and assessment SNR 16Training and student information meeting student needs SNR 17RTOis responsive to clients and stakeholders Compliance at initial audit Compliance following rectification SNR 18Governance SNR 19Cooperative with regulator SNR 20Compliance with legislation SNR 21Insurance SNR 22Financial management SNR 23Proper certification SNR 24Accurate and ethical marketing SNR 25Transition from superseded courses Compliance with standards by existingRTOs Audits of existingRTOs July – December

SNR 15Quality training and assessment SNR 16Training and student information meeting student needs SNR 17RTOis responsive to clients and stakeholders Compliance at initial audit Compliance following rectification SNR 18Governance SNR 19Cooperative with regulator SNR 20Compliance with legislation SNR 21Insurance SNR 22Financial management SNR 23Proper certification SNR 24Accurate and ethical marketing SNR 25Transition from superseded courses Compliance with standards by existing VictorianRTOs Audits of existing VictorianRTOs July – December

Compliance at initial audit Compliance following rectification SNR 15.1Continuous improvement of training and assessment SNR 15.2Training meets requirements of training package SNR 15.3Required staff, facilities, equipment and materials SNR 15.4Qualified and competent trainers and assessors SNR 15.5Assessment done properly Compliance with standards by existingRTOs Audits of existingRTOs1 July 2014 – 31 December 2014

Compliance at initial audit Compliance following rectification SNR 15.1Continuous improvement of training and assessment SNR 15.2Training meets requirements of training package SNR 15.3Required staff, facilities, equipment and materials SNR 15.4Qualified and competent trainers and assessors SNR 15.5Assessment done properly Compliance with standards by existing VictorianRTOs Audits of existing VictorianRTOs1 July 2014 – 31 December 2014

Conclusions from three and a half years of national regulation manyRTOsoffer courses that are too short to properly deliver and assess competency mostRTOsstruggle with assessment 71.9% ofRTOsthat have been audited have at least some non-compliance at the initial audit however, mostRTOs(85.1%) are able to achieve full compliance after 20 day rectification o 66.2%ofVictorianRTOsthat have been audited have at least some non- compliance at the initial audit o however, mostVictorianRTOs(82.5%) are able to achieve full compliance after 20 day rectification

The case for regulatory reform Modern risk- based regulation is all about “better identifying risks and developing strategies to better address those risks” ( Malcolm Sparrow) ASQA conducted 4387 audits (to 31 December 2014) o 85% of audits are applications based leading to:  142 refusals of initial applications to set up anRTO  134 refusal ofRTOrenewal applications  393 refusals of change of scope applications o 15% of audits are compliance/post-initial audits leading to 212RTOshaving cancellations/suspensions of registration

VET regulatory reform Reforms will focus ASQA’s regulatory scrutiny on providers who do not provide quality training while allowing those providers who offer high quality training and assessment to undertake these activities without unnecessary regulatory burden. The reforms seek to: lower regulatory burden and cost on high quality, fully compliant RTOs through an earned autonomy strategy provide more support to RTOs who are trying to comply but have some difficulties in fully meeting the standards through education and information apply even more rigorous regulation of seriously non-compliant, poor quality providers further implement a modern risk-based regulatory approach moving the VET regulatory trigger from the submission of an application by an RTO to better identifying and managing risk.

VET regulatory reform – external delegations Stage 1 o 555 invites in October 2014  including 64 to VictorianRTOs o 120 delegations issued to date  including 11 Victorian delegates (as at 28 February 2015) Stage 2 – 1 July2015 o RTOs not yet renewed by ASQA can seek delegation (with audit of Standard 1) o 1210 potential RTOs Stage 3 – 1 July2016 o previously found non-compliant at audit but rectified o can seek to have delegation (with audit of Standard 1) o 450 potentialRTOs

Complaints Complaints are becoming a core piece of market information to inform risk-based regulation approx1400 complaints per year 4133 in total to 31 Dec % came from students crucial to risk-based regulation

VET FEE-HELP review an example of risk-based regulation 110 VET FEE-HELP complaints received to 31 Dec 2014 providers with more than one complaint being investigated (18RTOs) fiveRTOsbenchmark sample

Standards for Registered Training Organisations 2015 The new Standards can be grouped as follows: training and assessment obligations to learners andclients, and governance eightstandards providea greater level of detail applicableto both applicants and existingRTOs

Main differences more detail about assessment verification/validation process obligations around third-party arrangements including brokers and VET FEE-HELP o requireRTOsto provide details to learners about the repayment of any debt incurred under the VET FEE-HELP scheme arising from the provision of services to the learner greater disclosure to students clearer and more detailed requirements around marketing certificate on compliance new requirements about trainers and assessors will give ASQA the ability to tackle other problem areas such as unscrupulous providers offering very short courses Standards for Registered Training Organisations 2015

New legislation introduced into the House of Representatives on 25 February 2015 makes a number of amendments to theNational Vocational Education and Training Regulator Act 2011(the Act) amendments seek to support VET reform, give ASQA the capacity to respond rapidly to emerging issues and facilitate more effective and efficient regulation members of parliament have largely supported the measures in the Amendment Bill it passed through the House of Representatives and was introduced into the Senate on 5 March the Bill passed through the Senate on 16 March 2015 TheNational Vocational Education and Training Regulator Amendment Bill 2015(Amendment Bill)

The Amendment Bill seven years for reregistration brokers have to declare whatRTOs they’re recruiting students for new power to make a quality standard other minor changes Key measures

Going forward