Embarking on the journey of establishing a Registered Training Organisation (RTO) is a huge venture, and it comes with its fair share of complexities. Navigating the compliance requirements is crucial for a successful RTO initial registration. In this blog, we’ll share key tips to ensuring compliance and set you on the path to a seamless registration process.
Sitting in a hotel room in the far north of Australia in the wet season means that nothing dries. I wiped down the benches, and they remain wet an hour later, my laptop has dampness on the keyboard as I open it to type up this blog, my keys are damp. I love the moist air of the tropics, the feeling on my skin that I never get in the dry when I am at home, it a blessing. I have just hung up the telephone from someone thinking about RTO registration. I bet they weren’t standing outside in the wet (sheltering) from the pouring rain!
The conversation went along the lines of:
🌟 How long will it take,
🌟 What do I need to do and
🌟 What qualifications do I need (or my trainers and assessors need)
I find these are common questions so wanted to assist where I can.
The first one, “How long will it take?” has been answered by ASQA recently; the ASQA Application processing times are shorter if the RTO is compliant, and everything is done correctly. It helps when you have someone supporting you and to show you the way.
Part of the process for your application is considering the financial risk for an applicant / RTO at initial registration. The financial risk indicators focus on the the business financial viability and the potential impact (on students and the business) and ensuring the delivery of quality training and assessment services and outcomes.
Financial risk indicators are used to consider the likelihood that quality skills outcomes will be achieved, or not achieved, as the case may be.
The financial risk tool ensables you to show that you have the resources to support the business. ASQA want you to have a sustainable business. So do I.
Just as when you are setting up any business it is good practice to make sure you have the funds to support you for at least six months. ASQA are looking at making sure you are getting the figures right, rather than having a specifed amount in the bank. ASQA have said there is no requirement for an organisation to demonstrate any specified minimum value of total assets. However, as I mentioned earlier, I still recommend that you are able to show at least six months of funds at your disposal to cover ongoing costs such as rent or commercial mortgage payments, salaries, advertising and marketing costs and other general start-up costs. Even if it is for your own and family sanity.
To see the ASQA information sheet go to:
What do I need to do?
In essence you need to prepare your business ready to operate. To do this I recommend you review the User Guide for the New Standards. This has some excellent case studies in it that can provide inspiration.
Then you need to implement actions, prepare documents, people and prepare everything to show that you can run a successful RTO.
In assessing the quality of business planning undertaken, ASQA considers the following information:
💡 Evidence of market research through consultation
💡 Financial budget projections, and the details of assumptions underlying projections
💡 Strategies for training and assessing students
💡 Demonstrated understanding of the VET Quality Framework
💡 Resources, staffing, equipment and assets required to deliver the plan
💡 A risk plan for your business and appropriate mitigation strategies
What qualifications do I need (or my trainers and assessors need)
Trainers and assessors qualifications; it is about showing recent vocational competency to each unit they will be delivering and assessing against. This must be demonstrated through recent experience within the industry of the trainer/assessor and a detailed matrix against the units.
The key here is to identify industry experts, who are currently interacting within their industry, to deliver the training and assessment. This means they are current, and they can always learn to be a great trainer. As an RTO you need to ensure they have the appropriate training and assessment qualifications, and supervision, as well as mentoring. Once they are training and assessing they must maintain this currency and keep up with their professional development in both training and assessing and their industry competency.
The next steps to RTO Initial Registration Compliance
1. Understanding Regulatory Framework: It’s paramount to have a solid grasp of the regulatory framework. You will need to really have a grasp of the national standards, regulations, and guidelines governing RTOs to establish a strong foundation for compliance.
- Read and seek to understand the regulatory framework governing RTOs in your jurisdiction, including national standards, regulations, and guidelines.
- Seek guidance from regulatory authorities or industry experts to ensure a thorough understanding of compliance requirements for initial registration.
- Develop a compliance roadmap outlining the steps and milestones required to establish your compliant and accredited RTO.
2. Robust Policies and Procedures: Developing and showing how you will implement robust policies and procedures that meet your RTO needs and compliance is needed at initial registration. From student enrollment processes to assessment methodologies, having clear and comprehensive documentation ensures adherence to regulatory requirements.
- Purchase or draft comprehensive policies and procedures tailored to your RTO’s specific needs and compliance obligations.
- Establish clear documentation outlining processes for student enrolment, assessment validation, trainer qualifications, and administrative operations.
- Implement a systematic approach to policy development and review, involving key stakeholders to ensure alignment with regulatory standards and best practices.
3. Quality Training and Assessment Strategies: Creating effective training and assessment strategies is key to RTO success. Align your practices with industry standards, ensuring that your training programs are not only engaging but also meet the expectations set by regulatory bodies.
- Design training and assessment strategies that align with industry standards, competency frameworks, and regulatory requirements.
- Develop a framework for delivery methods, and assessment practices that promote learner engagement, skill development, and achievement of learning outcomes.
- Invest in staff development programs to enhance the skills and competencies of trainers and assessors within your industry.
4. Adequate Resources and Facilities: Compliance extends beyond paperwork; it includes having the necessary resources, tools, equipment and facilities to deliver high-quality training. Ensure that your RTO is equipped with the right tools, qualified trainers, and suitable learning environments before your application.
- Conduct a needs assessment to identify the resources, tools, equipment, and facilities required to deliver your training programs.
- Allocate sufficient budget and resources for infrastructure setup, such as classrooms, simulation equipment, and technology infrastructure.
- Source suppliers, vendors, and service providers for equipment procurement, maintenance services, and ongoing support to ensure operational readiness and sustainability.
5. Student Support Services: Creating a supportive learning environment is a fundamental aspect of compliance. Implement strategies for student engagement, support services, and recognition of prior learning to enhance the overall learning experience.
- Develop a student support framework to enhance the student experience.
- Implement strategies for student engagement such as orientation programs, mentoring, well-being and counselling to support student success and retention.
- Establish communication channels for students to provide feedback, seek assistance, and access support resources throughout their learning journey.
6. Stakeholder Engagement Plan: Develop and implement a comprehensive stakeholder engagement plan that outlines how relevant stakeholders such as industry partners, employers, students, and community members are involved, or have contributed to the development of your RTO. This plan should demonstrate how their input will be valued and integrated into decision-making processes, enhancing the relevance and effectiveness of your training programs.
- Conduct thorough market research to identify demand for training programs in specific industries or sectors.
- Analyse demographic trends, employment projections, and skill gaps to determine target markets and program offerings.
- Seek input from industry stakeholders, employers, and potential students to understand their training needs and preferences.
7. Transparent Financial Management: Maintaining financial transparency is not just good business practice; it’s a compliance requirement. Implement sound financial management practices, including accurate record-keeping and regular financial audits, to ensure compliance with regulatory standards.
8. Staff Development and Training: Your team is at the heart of your RTO’s success. Invest in staff development and training programs to ensure that your personnel are well-versed in compliance requirements, fostering a culture of accountability and continuous learning.
- Invest in staff recruitment and professional development programs to build a skilled and motivated workforce.
- Provide opportunities for staff to acquire relevant qualifications, certifications, and credentials in education, training, and compliance management.
- Foster a supportive work environment that values continuous learning, collaboration, and innovation to attract and retain top talent in the field of vocational education and training.
Having a good strategy for the initial registration of your Registered Training Organisation (RTO) ensures compliance with regulations, sets the foundation for quality education delivery, enhances student experience, fosters organisational excellence, and supports long-term business sustainability.
Contact Merinda
RTO Coach (and mentor)
Running an RTO often feels like you’re steering a busy harbour: constant movement, shifting conditions, and a stream of decisions only you can make. Most leaders won’t admit it, but the real strain isn’t the paperwork — it’s the weight of being the one everyone relies on. It’s the weight of holding the whole business together. The people, the policies, the students, the physical space…I could go on. One misstep and everything could topple. It’s stressful, overwhelming, and exhausting. My role is to help them step back, see the pattern, and put out the fires before they spread. When women come to me, they’re usually carrying a blend of confidence and exhaustion. They know their training. They know the standards. But beneath that capability sits fatigue, decision overload, a team needing direction, and the quiet sense that the RTO is starting to direct them. Sometimes I see it as a heavy curtain drawn between the RTO owner and the clarity they need to make confident decisions. Behind that curtain, they’re juggling staffing issues, compliance updates, running courses and growth strategies, and they can’t always see the path forward. Working together, we gently pull the curtain aside. And along the journey the chaos becomes manageable. The path becomes visible, and the next steps are clear. This is where RTO coaching becomes more than strategy – it becomes realignment. This is the heart of coaching Where clarity that cuts through noise, strategy that feels aligned, and leadership that finally breathes again. Because your RTO is more than a business. It’s a legacy. It shapes futures, opens doors, and lifts people into new possibilities. But it can only rise sustainably when its leader is centred, supported, and clear. Through a combination of strategic planning, leadership development, and holistic coaching, I help RTO leaders move from operational overwhelm to strategic freedom. We design growth plans, implement new strategies, and build leadership capacity so they can step out of day-to-day firefighting. The results are not just operational; they’re personal, and sustainable. Owners start earning more, working fewer hours, and rediscovering the joy and purpose that led them to start their RTO in the first place. It’s deeply rewarding to watch leaders transform, not just in how they run their business, but in how they show up for themselves and their teams. If you’ve ever felt like the ocean is beginning to boil up into a storm – or that curtain is too heavy to lift anymore – you don’t have to navigate it alone. My FREE online Discovery call can help you step back, see the bigger picture, and create the space to grow both personally and professionally. RTO coaching isn’t about adding more to your workload — it’s about giving you the space to lead at the level you’re truly capable of. Book a call today
VET Insights / Trainer Capability / Compliance
Earlier this year, I stepped into a short-term contract delivering the TAE40122 to a specific, and often misunderstood, cohort: blue-collar workers. These were experts in their trades – people who could erect scaffolding or dismantle an engine with their eyes closed, yet they were stepping into an environment of assessment, intense wordsmithing, and delivery for the very first time. Many hadn’t written anything longer than a workplace incident report in years. In those first few days of the delivery, the resistance was hot in the air. I heard the groans, the pointed remarks, and the blame, shame, denial and sometimes fear creeping in. The sheer volume of work, the unfamiliar learning management system, and the vulnerability required to express their thinking in writing landed on them all at once. You could hear their internal brakes squealing as they outwardly huffed and puffed. But as we moved through the course, something shifted. Last week, as they finalised their final unit, I witnessed a group of people who hadn’t just learned to assess; they had fundamentally expanded their identities. This experience brought something into sharp focus for me: The true intent of the 2025 RTO Standards. Building People, Not Just Ticking Boxes The Shift from Process to People For a long time, the VET sector has been bogged down in the administrative “how” – the ticking of boxes and the gathering of paper. However, the 2025 Standards for Registered Training Organisations have made a significant shift. They move us away from prescriptive inputs and toward outcomes and learner well-being. Watching my blue-collar cohort grow, I realised that this is what the new Standards are actually asking of us. Here is how true facilitation aligns with the 2025 framework: 1. Learner Support and Well-being (The “Whole Person” Approach) The new Standards place a heavier emphasis on the learner’s journey and safety (both physical and psychological). When my students were “squealing the brakes,” they weren’t being difficult; they were experiencing cognitive overload and fear of failure. Under the 2025 focus, “support” isn’t just about having a policy on a hard drive. It’s about: Active Facilitation: Recognising when a student is disengaging due to stress or anxiety and providing steady encouragement. Tailored Resources: Designing assessments and learning materials that are genuinely accessible, particularly for those who haven’t studied in years. Psychological Safety: Creating a space where learners feel safe to fail, to experiment, and to ask questions without judgment. 2. Adaptive Delivery and Flexibility The “cookie-cutter” approach to the TAE is dying. This cohort would have struggled, or dropped out, in a distance-only, “read this PDF” model. They needed context. They needed to see how their trade experience translated into the training environment. They needed facilitation, conversation, (a bit of metaphorical hand holding) and guidance to connect what they already knew with what they were being asked to teach. Under the 2025 RTO Standards, this approach isn’t just a nice-to-have; it’s part of compliance. The Standards emphasise learner-centred design, active engagement, and accessibility. It’s about recognising that each learner brings a unique mix of experience, skills, and challenges, and creating learning that meets them where they are. For this cohort, providing tailored examples, real-world scenarios, and coaching through the writing and assessment process made all the difference. They weren’t just completing units; they were transforming their identities from workers to trainers, building confidence, and understanding the value of their experience in a teaching context. The new Standards empower RTOs to demonstrate that their training is fit-for-purpose. This means we have the license to slow down, to contextualise, and to focus on the quality of the skill acquisition rather than just the speed of completion. 3. Integrity in Assessment The transformation I witnessed wasn’t just confidence; it was competence. By the end, they understood why assessment validation matters and how to support a learner. The 2025 Standards demand that assessment outcomes are genuine. When we rush learners or do the heavy lifting for them just to get them through, we rob them of that “fog lifting” moment. True integrity is sticking with the learner until they get it – ensuring they leave us as capable trainers, not just certificate holders. The Leadership Role of the Trainer To me, being a TAE trainer has never been about checking units off a list. It’s about empowerment. It’s about building people up from the inside out. The revised Standards call for stronger educational leadership. This means RTOs need to develop trainers who are subject matter experts, AND mentors. We need trainers who can spot the potential in a nervous tradie and nudge them toward a bigger version of themselves. The Takeaway for RTOs If you are managing an RTO or leading a training team, ask yourself: Are our systems set up to handle the “squealing brakes” moments? Do our trainers have the time and emotional intelligence to facilitate identity shifts, not just mark papers? Are we viewing the 2025 Standards as a compliance headache, or as a permission slip to focus on quality human outcomes? Watching this cohort grow has reminded me why this work matters. It’s why I’ll always champion those brave enough to learn in unfamiliar territory- and the RTOs brave enough to support them properly. Here’s to the next group who put their hand up to grow. Blog by Merinda Smith – RTO Mentor, TAE Lecturer, Leadership Coach🎧 Listen to my podcast: The Reins of Leadership💬 Connect on LinkedIn | 📩 Contact me for mentoring & compliance support
Flip the Mindset: Compliance as Purpose
let’s flip the script. When compliance is everyone’s business, it becomes part of your culture. Invite input from trainers, administrative staff, and even students.
Guiding your RTO training stars
A structured, supported first 90 days can make or break a new trainer’s confidence and contribution. When RTOs take mentoring seriously, they don’t just support the trainer-they lift the entire learning experience for students.