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Registered Training Organisations (RTOs) and Schools that have third party arrangements with RTOs to deliver Vocational Education and Training (VET) in schools for their students need to prepare for revised RTO Standards that will come into effect in mid-2025.
The Commonwealth Department of Employment and Workplace Relations released the policy versions of the revised standards on 1 October 2024.
In this article we look at some of the Revised Standards and how they will influence RTO operations and arrangements with schools in Victoria.
How are the RTO Standards changing?
The current RTO Standards 2015 (Current Standards) are being replaced with new standards which will come into regulatory effect from 1 July 2025 (Revised Standards). They include:
- The Outcome Standards – focused on delivering quality vocational education and training to learners with strengthened self-assurance requirements for RTOs;
- Compliance Requirements – focused on supporting the integrity of training products including through clearer fit and proper person requirements;
- The Credential Policy – clarifies trainer and assessor requirements.
The Revised Standards provide for a more streamlined set of standards compared with the Current Standards, although RTOs should factor in the separate legislative instruments and policy for compliance and trainer and assessor credentials.
Who will be impacted by the Revised RTO Standards?
Victorian RTOs, including schools which are also RTOs, that are regulated by the VRQA will not be impacted and remain subject to the AQTF 2010 Essential Conditions and Standards for Continuing Registration and the VRQA VET Provider Guidelines.
Schools engaging with RTOs under third party arrangements to deliver VET in schools to students may be impacted. For example, if you are a school delivering training under the auspices of an RTO that is regulated by the Australian Skills Quality Authority (ASQA), then your third-party agreement arrangements will need to consider the Revised Standards.
RTOs regulated by ASQA will need to comply with the Revised Standards.
Emphasis on quality within the Revised Standards
The new Outcomes Standards are framed against four quality area outcome statements under the pillars of:
- Training and Assessment (8 Standards);
- VET student support (8 Standards);
- VET Workforce (3 Standards and incorporating the Credential Policy); and,
- Governance (4 Standards).
Compliance will be determined at the standard level under each quality area. RTOs will have a greater autonomy in how they demonstrate compliance with the Outcomes Standards. ASQA has published Outcome Standards Policy Guidance to accompany the release of the Outcome Standards.
Outcome focused training and assessment
The Revised Standards move away from leaning on requirements for “training and assessment strategies and practices” and adopt outcomes-focused performance whereby RTOs must deliver training which is “engaging and well structured” (Standard 1.1), demonstrate “effective engagement with industry, employers and/or or community representatives” (Standard 2.2), and have an “assessment system” that is “fit for purpose” and “is quality assured…through a regular process of validating assessment practices and judgments.” (Standards 2.3-2.4).
Supporting VET Students
Schools will be familiar with the concept of providing a culturally safe school environment for students in accordance with obligations under Ministerial Order 1359. The Revised Standards introduce Standard 2.5 requiring RTOs to demonstrate how they foster “a safe and inclusive learning environment for VET students” and “a culturally safe learning environment for First Nations people”. Schools with purchasing or services arrangements with RTOs regulated by ASQA can point to their child safety and wellbeing policies and child safety commitment to engage with RTOs about the needs of VET in school student cohorts. RTOs will need consider how they consult with industry, the community and students to create a safe and inclusive learning environment.
Standard 2.4 specifically requires RTOS to make reasonable adjustments to support VET students with disability to access and participate in training and assessment on an equal basis For Schools purchasing VET services from RTOs, both the Sschool and the RTO have separate obligations to students with a disability.
Strengthened governance oversight for U18 VET students
The Revised Standards introduce risk management obligations for RTOs offering training and assessment to VET students aged under 18 years. RTO’s will be required to identify and manage safety and wellbeing risks “consistent with principles for child safety organisations, having regard to the training content and mode of delivery (Standard 4.3).
RTO’s will need to review their child safety and wellbeing policies and codes of conduct if they do not already have in place and consider how child safety risks are managed at the organisational level. This is a positive step for schools with VET in schools arrangements as these types of arrangements fall within the meaning of the “school environment” under Ministerial Order 1359. Schools will be required to review the terms they have in place with third party providers, including RTOs, to meet Ministerial Order 1359.
What should you be doing?
To support your readiness to comply:
- RTOs will need to plan for transition to compliance with the Revised Standards by mid-2025.
- RTOs will need to review their child safety and wellbeing policies and codes of conduct as they prepare for compliance in 2025.
- Schools and RTOs will need to review their VET in schools arrangements.
How we can help
Contact our Education and Training team for tailored advice on how the Revised Standards may impact to your organisation, whether you are an RTO impacted by the Standards or a school that partners with RTOs. We can also help to review and develop policies as well as review third party arrangement contracts.
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Disclaimer: This article provides general information only and is not intended to constitute legal advice. You should seek legal advice regarding the application of the law to you or your organisation.