June 16, 2025 • 24 mins
In this urgent episode of the RTO Superhero Podcast, Angela Connell-Richards takes you inside a growing crisis in Australia’s vocational education sector. Private RTOs—who deliver over 70% of the nation’s training—are being hit with devastating funding cuts, unfunded compliance reforms, and a wave of closures that threaten access, jobs, and student outcomes.
Angela shares real frontline stories, the latest NCVER data, and what government isn’t telling you about the Fee-Free TAFE agenda. She also unveils her Open Letter to the Prime Minister and Ministers, backed by hundreds of RTO professionals calling for fair, performance-based funding and immediate action.
✅ Why private RTOs are closing their doors in record numbers
✅ The true cost of excluding independent providers from policy reform
✅ How you can join the campaign to #SavePrivateRTOs
✅ Behind-the-scenes of the 2025 Standards overhaul—and what it means for your RTO
✅ What we’re demanding from government—and how you can help us get heard
🎯 This episode isn’t just a conversation—it’s a call to action.
📢 Read and share the open letter: www.vivacity.com.au/open-letter
🖊️ Sign the petition: change.org/save_private_rtos
Join host Angela Connell-Richards as she opens each episode with a burst of insight and inspiration. Discover why compliance is your launchpad to success, not a limitation.
Connect with fellow RTO professionals in our free Facebook groups: the RTO Community and RTO Job Board. Visit rtosuperhero.au/groups to join today.
Wrap up with gratitude and guidance. Subscribe, leave a review, and join our community as we continue supporting your compliance journey in vocational education.
Thank you for tuning in to the RTO Superhero Podcast!
We’re excited to have you join us as we focus on the Revised Standards for RTOs in 2025. Together, we’ll explore key changes, compliance strategies, and actionable insights to help your RTO thrive under the new standards.
Stay connected with the RTO Community:
📌 Don’t forget to:
✔ Subscribe to the RTO Superhero Podcast so you never miss an episode!
✔ Share this episode with your RTO network—compliance is a team effort!
🎙 Listen now and get ahead of the compliance changes before it’s too late!
📢 Want even more compliance insights? Subscribe to our EduStream YouTube Channel for our FAQ series on the New Standards for RTOs 2025! 🎥
🔗 Subscribe now: EduStream by Vivacity Coaching
✉️ Email us at hello@vivacity.com.au
📞 Call us on 1300 729 455
🖥️ Visit us at vivacity.com.au
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Angela Connell-richards (00:06):
Welcome to the RTO Superhero Podcast,
where compliance becomescollective action.
I'm your host, AngelaConnell-Richards.
Today we're confronting aperfect storm significant
funding cuts to private RTOs and, from 1 July 2025, a
comprehensive overhaul ofnational standards by the
(00:27):
Department of Employment andWorkplace Relations.
If we don't act within the next12 months, we risk losing
thousands of quality providersand their expert teams.
Let's delve into what'shappening, hear real stories and
chart a path forward.
(00:49):
Australia's vocational educationlandscape has dramatically
shifted over the past two years.
Governments at both state leveland federal have heavily
invested in fee-free TAFEinitiatives, expanding
subsidised places by tens ofthousands.
However, this has come at theexpense of private RTOs, leading
(01:11):
to fewer funded places, squeezeoperating margins and growing
calls for a performance-basedfunding model.
Let's break down the majorfunding developments across
various jurisdictions.
Victoria In late 2023, theVictorian Government awarded
Skills First contracts for 2024to just 78 providers,
(01:37):
effectively removing 22 privateRTOs from the program, despite
ongoing skill shortages insectors like manufacturing.
Western Australia the 2025-26state budget committed $100
million to freeze TAFE fees in2026 and $21.9 million to expand
(01:59):
fee-free building andconstruction courses.
While fee-free courses areavailable across WA TAFE
colleges and private trainingproviders, the emphasis was
overwhelmingly flavoured by TAFEdelivery.
New South Wales the Smart andSkilled Program maintains
(02:19):
eligibility for private RTOs ifthey meet all requirements for
private RTOs if they meet allrequirements.
Yet antimonial reports indicatefunded places have plateaued
and many RTOs feel squeezed asmore places are earmarked for
TAFE.
New South Wales.
Queensland under the nationalcommitment to 300,000 fee-free
(02:42):
TAFE places by 2026.
Queenslanders gained access to14,500 fee-free places in 2024.
While some providers may accessthese places, the scale of
fee-free enrolments has placedprivate RTOs under financial
pressure.
South Australia Skills SA listsa growing number of fee-free
(03:07):
TAFE courses, but private RTOsreport difficulty in securing
subsidised enrolments amid anexpanding TAFE share of the
skills list.
Tasmania TasTAFE's fee-free TAFEinitiatives covers tuition for
over a dozen Certificate 2 to 4courses.
Private RTOs express concernthat their funded cohorts are
(03:30):
shrinking as students opt forfree options.
Northern Territory, charlesDarwin University and the
Northern Territory TAFE jointlyoffer fee-free TAFE places.
However, private RTOs note thateligibility rules exclude many
provider types, concentratinggovernment support within the
(03:51):
public system.
The key takeaway here is,across every state and territory
, fee-free TAFE expansions haveprioritised government
institutions, tafes and ACEcolleges, often at the expense
of private RTOs.
This policy shift has coincidedwith wholesale funding
(04:12):
reallocations, leaving privateproviders to compete for a
shrinking pool of places,despite delivering demonstrably
superior outcomes.
Superior outcomes Australia'sprivate RTOs face not only
crippling funding cuts, but alsothe most significant regulatory
(04:32):
reform in the decade.
In May 2024, the Skills andWorkforce Ministerial Council
approved a complete redesign ofthe RTO standards, now
administered by the Departmentof Workforce Relations, dewa,
effective from 1 July 2025.
Let's have a look at a timelineand sector consultation.
In 2019 to 2024, dewa conductedfour years of public
(04:58):
consultation with states,territories, asqa, peak Bodies
and RTOs to draft revisions tothe Standards for RTOs 2015.
1 October 2024, dewa releasedthe policy version of the
revised standards and opened apublic survey, receiving over
100 sector submissions by monthend.
(05:19):
Early 2025, draft regulatoryguidelines are scheduled to be
progressively published by ASQAto support the transition.
14 March 2025, dewa lastmodified its Outcome Standards
Policy Guidance document,signalling final tweaks ahead of
(05:40):
legislative enactment.
April 2025, the NationalVocational Education and
Training Regulator instrumentswere tabled on the Federal
Register.
1 July 2025, full regulatoryeffect of the revised standards
All RTOs must comply from thisdate forward.
(06:01):
So let's have a look at the keycomponents of the revised
standards.
The new framework comprisesthree separate instruments
designed to sharpen focus onquality outcomes and streamline
compliance.
We've got the outcome standards.
Define the essential qualityoutcomes RTOs must consistently
achieve, structured into sixdomains, placing the 2015
(06:22):
standards mixed complianceoutcome approach, compliance
requirements.
Outline administrative andgovernance obligations,
including governance checks,reporting and record keeping.
And third party arrangements.
And then we have the credentialpolicy that standardises
qualification issuance andassessment validation
(06:43):
requirements.
As an RTO, there are manyburdens when it comes to the new
revised standards.
One such is policy rewrites.
Rtos must update all policiesand procedures to align with
each separate instrument.
Dua estimates an average RTOwill need to rewrite 50 to 70
(07:04):
documents.
Risk management systems Everyprovider must implement a formal
risk framework and registerStaff training All personnel
must be familiarised and trainedon the new standards, requiring
10 to 15 hours of professionaldevelopment per staff member on
average.
No additional funding DWER hasprovided no dedicated grants or
(07:29):
subsidies to assist RTOs withthese reforms.
Why does this matter?
With core funding down by 80%in recent contract rounds, many
private RTOs lack the cashreserves to cover these
compliance costs, riskingfurther closures Without proper
resourcing.
Some providers may struggle tofully embed the new standards,
(07:50):
potentially affecting trainingquality and triggering
non-compliance sanctions.
Struggle to fully embed the newstandards, potentially
affecting training quality andtriggering non-compliance
sanctions.
Between 1 July 2024 and 16 June2025, australia faced a surge in
business failures that rippledstraight into the VET sector.
The 2023-24 financial yearmarked a record 11,053 companies
(08:17):
entering externaladministration, the highest
since the global financialcrisis.
This trend accelerated in2024-25, with 12,405 businesses
collapsing between January andNovember 2024.
Ghost college shutdowns August2024.
(08:39):
The Albanese government closedover 150 dormant ghost colleges
and issued warning notices to140 more, aiming to curb
providers enrolling students forvisas without genuine training,
to curb providers enrollingstudents for visas without
genuine training.
However, this sweep riskedcatching reputable RTOs in the
(09:02):
net.
The collateral damages thatmany RTOs caught up in the Ghost
College crackdown were genuineproviders who had paused
delivery due to lack ofinternational students or
government funding.
And then there was theAutomatic policy 1 July 2024.
Asqa implemented a ruleautomatically lapsing the
registration of the RTO thathadn't delivered training for 12
(09:24):
consecutive months.
Now let's have a look at somereal stories, or some of our
clients.
We have a client that's anot-for-profit provider in New
South Wales and, as of 1 July2025, this community-focused
provider experienced a 60%reduction in its Martins Guild
(09:45):
funding, forcing it to halve allof its training and cut back on
all of its staff cutback on allof its staff.
In Victoria, we have an RTOthat earlier this year
experienced up to 80% cut instate contract funding.
That led to cancellation oftraining and courses and the
(10:05):
redundancy of trainers.
There's also been a number ofliquidations in our industry a
number of liquidations in ourindustry.
One such is EduWorks, which isan RTO consulting organisation
that's been around for around 16years and the liquidator was
appointed on the 17th of March2025.
(10:26):
This is partially due to RTOsnot being able to pay their
bills, not having sufficientfunds to be able to cover all of
the compliance risks that theyneed to cover, which has forced
a well-known consultingorganisation going into
liquidation and all of theirstaff being made redundant.
(10:48):
There's also been examples ofbooks and stationery companies.
There was one in Brisbane, asupplier that entered into
voluntary liquidation on the18th of March 2024, owing over
$5 million to creditors.
Another such is a venue wherethey hold training venues, so
(11:12):
they were liquidated on the 29thof April 2025 with over $1.4
million owed to the ATO.
These frontline accounts showthat, beyond the statistics,
real organisations andlivelihoods are unravelling.
In the next section, we'llexamine the superior outcomes
private RTOs deliver and whyshifting to a performance-based
(11:35):
funding model is critical topreserving choice, quality and
jobs in Australia's VET sector.
Despite navigating severefunding cuts and looming
compliance reforms, private RTOscontinue to deliver superior
student and employer outcomesacross multiple metrics
(11:56):
completion rates, graduateemployment, employer
satisfaction and costeffectiveness.
This section outlines the harddata demonstrating private
providers' strength,underscoring why
performance-based funding isessential to sustain quality and
choice in Australia's vetecosystem.
Ncver's 2023 report showsprivate RTOs achieved an overall
(12:23):
of 54.2% qualificationcompletion rate, compared with
43% at TAFE Institute a gap of11.2 percentage points,
demonstrating private providers'effectiveness in guiding
students to the finish line.
Breaking it down by levelCertificate 1, private providers
(12:45):
38.5% versus 22.5%.
For TAFE.
Certificate 2, 50.8% versus33.8%.
Certificate 2, 50.8% versus33.8%.
Certificate 3, 57.9% versus51.9%.
Certificate 4, 51.9% versus 44%.
(13:06):
Ncver notes these completionadvantages have persisted over
the last five years, reflectingprivate RTOs' consistent
performance amid sector upheaval.
The VET Student Outcomes 2023survey reports that 50.6% of
graduates who were unemployedbefore training found employment
(13:28):
after completing theirqualification and 37.8% of those
already employed moved tohigher skilled jobs,
highlighting VET'stransformative impact.
Two-thirds of Certificate I orabove graduates experience
improved employment statuspost-training up to 2.6% from
(13:51):
the prior year.
Private RTOs outshine TAFE inemployer ratings across key
dimensions Relevance of skillstaught 85.7% for private versus
80.1.
Flex% Trainer industry currency86.3% versus 76.8%.
(14:13):
Standard of assessment 87.8%versus 72.9%.
These figures confirmbusinesses trust private
providers to deliver job-readygraduates tailored to industry
(14:35):
requirements.
According to the 2023 NationalStudent Outcome Survey, 90% of
private RTO graduates expressedsatisfaction with their training
, compared to 85% at TAFE,reflecting stronger engagement
and support in private settings.
Moreover, 92% of private alumniwould recommend their course to
(15:01):
others, underscoring theperceived value of their
experience.
These statistics have beentaken from ncvereduau Industry
body.
Iteca highlights that privateRTOs deliver equivalent outcomes
at a fraction of the cost.
Deliver equivalent outcomes ata fraction of the cost.
(15:25):
A dollar of a taxpayer fundingin private RTOs generates the
same training outcomes thatwould cost $3.73 in TAFE,
demonstrating efficient use ofpublic dollars without
sacrificing quality.
A recent NCVER study reports94.5% of trade apprentices were
employed six monthspost-completion in 2023,
(15:46):
outpacing the 88.9% employmentrate for university graduates
and showcasing VET's direct linkto work-ready outcomes.
Professions such aselectrotechnology both starting
wages at $82,900, nearly on parwith commencing doctors, further
(16:07):
affirming VET's marketrelevance.
Vet enrolments exceeded $1.26million in 2023, a 5% increase
from 2022, with TAFE enrolmentsrising by 8.3% thanks to
fee-free initiatives.
Yet private RTOs remain crucialin servicing niche and regional
(16:30):
demands, maintaining programdiversity, critical for skills
gaps.
Ncver's Employer Views Reportconfirms a sustained high level
of engagement, with 84% ofemployers using accredited
training and reportingsatisfaction across both private
and public providers.
(16:51):
This data underlines thatprivate RTOs not only match
public providers in scale, butexceed them in quality and
efficiency, strengths thatfunding models must reward
rather than penalise.
Here's the critical juncture.
The 2026 funding allocationsare being finalised right now.
(17:13):
If private RTOs don't secureperformance-based and
transparent funding in thisround, we will see the steepest
wave of closures ever recorded.
Entire programs hospitality,aged care, health support, it
trades could vanish, trainerswill be laid off, classrooms
(17:35):
will be closed, students willhave nowhere to go, in
particular in regional areas.
And let's be clear this ispolitical, not technical.
We know how to run compliance.
We know how to measure outcomes.
We have evidence NCVER data,asqa audits, employer surveys,
(17:57):
student feedback that privateRTOs deliver.
The question is will ourdecision makers listen?
Remember, compliance doesn'thave to be a burden.
It can be your superpower, butonly if we use it as a
foundation for collective action.
Right now, private RTOs arefacing more than just funding
(18:19):
cuts.
We're facing the possibledismantling of the most agile,
high-performing part ofAustralia's vocational education
system.
We know the value we bring.
We know our data backs us.
The only question left is willwe raise our voices before it's
too late?
Australia's private RTO sectorsurvives on real collective
(18:44):
voices.
Mere LinkedIn posts won't movethe needle To secure
performance-based, transparentfunding and preserve vocational
choice.
We must transform slacketivisminto practical action.
I'm going to give you someessential steps, backed by
evidence, on what makespetitions and grassroots
(19:06):
mobilisation effective.
Social media likes and sharesfeel empowering, but without
concrete follow-through theyamount to slacketivism.
Low-effort activism that rarelyproduces policy change.
Research shows that e-petitionscombined with direct pressure
low-effort activism that rarelyproduces policy change.
Research shows that e-petitionscombined with direct pressure
(19:27):
on decision-makers significantlyincrease the likelihood of a
response.
Signatures alone isn't enoughunless accompanied by calls,
emails and meetings.
Thousands of successfulAustralian campaigns, from
saving public parks to wipingout HECS debt, began with
(19:49):
petitions that surpassedcritical signature thresholds.
Nearly 300,000 signatures ledto the HECS reform.
Add your name now.
Go to https://changeorg_ Save_Private_rtos
Encourage supporters to email,call or meet their local MP.
(20:11):
Decision makers rank direct,consistent contract emails 32.7%
, phone 19.2% and in-person23.1% as more persuasive than
social media tagging 11.5%.
Provide pre-written templatesand scripts to make their
(20:33):
outreach simple and effective.
Petitions that includeauthentic narratives of impact
resonate more deeply.
Describe your RTO's funding,cut staff layoffs or student
delays.
These first-hand accountscompel MPs to act and act now.
Host a local RTO day of action,virtual town halls or small
(20:59):
group meetings with MPs ofaction virtual town halls or
small group meetings with MPs.
Collective events demonstratecommunity strength far beyond
isolated social posts.
And watch this space.
We have a lot coming forward.
Evidence for sector-widemobilisation Petition victories
(21:21):
Change.
org Australia reports 3,256victories since 2011, with 906
formal responses from decisionmakers, showing that organised
petitions can reshape whencombined with follow-up actions.
Your next steps Sign and share.
(21:42):
Put your name on our petitionthe links are in the show notes
or go to changeorg backslash,save underscore private
underscore rtos and ask fivecolleagues to do the same for
the email template that I'veprovided in the show notes to
(22:03):
your local MP and follow upwithin a week.
Post your story in our Facebookgroup and tag three peers.
Then post a short video callingon your network to take the
petition further.
Stand up now, not just withsocial media posts, but with
clear, measurable actions when3,000 plus sector voices unite,
(22:27):
we will transform policy, securefair funding and ensure private
RTOs continue to deliver thequality training Australia needs
.
Sign the petition.
Go to https://change.
org/ Save_ private_ RTOs.
Share your story on Facebookand LinkedIn.
Contact your local MP.
(22:48):
Thank you for joining me onthis urgent, essential episode
of the RTO Superhero Podcast.
The next 12 months will definethe future of private vocational
training in Australia.
If you believe in choice,quality and innovation, sign,
share and contact.
(23:08):
Let's turn compliance intocollective action and ensure our
sector not only survives butthrives for generations to come.
I'm Angela Cornel Richards, ceoand CEO and founder of Vivacity
Coaching and Consulting.
Stay compliant, stay empoweredand I'll see you next time.
Welcome to the RTO Superhero Podcast,
where compliance becomescollective action.
I'm your host, AngelaConnell-Richards.
Today we're confronting aperfect storm significant
funding cuts to private RTOs and, from 1 July 2025, a
comprehensive overhaul ofnational standards by the
(00:27):
Department of Employment andWorkplace Relations.
If we don't act within the next12 months, we risk losing
thousands of quality providersand their expert teams.
Let's delve into what'shappening, hear real stories and
chart a path forward.
(00:49):
Australia's vocational educationlandscape has dramatically
shifted over the past two years.
Governments at both state leveland federal have heavily
invested in fee-free TAFEinitiatives, expanding
subsidised places by tens ofthousands.
However, this has come at theexpense of private RTOs, leading
(01:11):
to fewer funded places, squeezeoperating margins and growing
calls for a performance-basedfunding model.
Let's break down the majorfunding developments across
various jurisdictions.
Victoria In late 2023, theVictorian Government awarded
Skills First contracts for 2024to just 78 providers,
(01:37):
effectively removing 22 privateRTOs from the program, despite
ongoing skill shortages insectors like manufacturing.
Western Australia the 2025-26state budget committed $100
million to freeze TAFE fees in2026 and $21.9 million to expand
(01:59):
fee-free building andconstruction courses.
While fee-free courses areavailable across WA TAFE
colleges and private trainingproviders, the emphasis was
overwhelmingly flavoured by TAFEdelivery.
New South Wales the Smart andSkilled Program maintains
(02:19):
eligibility for private RTOs ifthey meet all requirements for
private RTOs if they meet allrequirements.
Yet antimonial reports indicatefunded places have plateaued
and many RTOs feel squeezed asmore places are earmarked for
TAFE.
New South Wales.
Queensland under the nationalcommitment to 300,000 fee-free
(02:42):
TAFE places by 2026.
Queenslanders gained access to14,500 fee-free places in 2024.
While some providers may accessthese places, the scale of
fee-free enrolments has placedprivate RTOs under financial
pressure.
South Australia Skills SA listsa growing number of fee-free
(03:07):
TAFE courses, but private RTOsreport difficulty in securing
subsidised enrolments amid anexpanding TAFE share of the
skills list.
Tasmania TasTAFE's fee-free TAFEinitiatives covers tuition for
over a dozen Certificate 2 to 4courses.
Private RTOs express concernthat their funded cohorts are
(03:30):
shrinking as students opt forfree options.
Northern Territory, charlesDarwin University and the
Northern Territory TAFE jointlyoffer fee-free TAFE places.
However, private RTOs note thateligibility rules exclude many
provider types, concentratinggovernment support within the
(03:51):
public system.
The key takeaway here is,across every state and territory
, fee-free TAFE expansions haveprioritised government
institutions, tafes and ACEcolleges, often at the expense
of private RTOs.
This policy shift has coincidedwith wholesale funding
(04:12):
reallocations, leaving privateproviders to compete for a
shrinking pool of places,despite delivering demonstrably
superior outcomes.
Superior outcomes Australia'sprivate RTOs face not only
crippling funding cuts, but alsothe most significant regulatory
(04:32):
reform in the decade.
In May 2024, the Skills andWorkforce Ministerial Council
approved a complete redesign ofthe RTO standards, now
administered by the Departmentof Workforce Relations, dewa,
effective from 1 July 2025.
Let's have a look at a timelineand sector consultation.
In 2019 to 2024, dewa conductedfour years of public
(04:58):
consultation with states,territories, asqa, peak Bodies
and RTOs to draft revisions tothe Standards for RTOs 2015.
1 October 2024, dewa releasedthe policy version of the
revised standards and opened apublic survey, receiving over
100 sector submissions by monthend.
(05:19):
Early 2025, draft regulatoryguidelines are scheduled to be
progressively published by ASQAto support the transition.
14 March 2025, dewa lastmodified its Outcome Standards
Policy Guidance document,signalling final tweaks ahead of
(05:40):
legislative enactment.
April 2025, the NationalVocational Education and
Training Regulator instrumentswere tabled on the Federal
Register.
1 July 2025, full regulatoryeffect of the revised standards
All RTOs must comply from thisdate forward.
(06:01):
So let's have a look at the keycomponents of the revised
standards.
The new framework comprisesthree separate instruments
designed to sharpen focus onquality outcomes and streamline
compliance.
We've got the outcome standards.
Define the essential qualityoutcomes RTOs must consistently
achieve, structured into sixdomains, placing the 2015
(06:22):
standards mixed complianceoutcome approach, compliance
requirements.
Outline administrative andgovernance obligations,
including governance checks,reporting and record keeping.
And third party arrangements.
And then we have the credentialpolicy that standardises
qualification issuance andassessment validation
(06:43):
requirements.
As an RTO, there are manyburdens when it comes to the new
revised standards.
One such is policy rewrites.
Rtos must update all policiesand procedures to align with
each separate instrument.
Dua estimates an average RTOwill need to rewrite 50 to 70
(07:04):
documents.
Risk management systems Everyprovider must implement a formal
risk framework and registerStaff training All personnel
must be familiarised and trainedon the new standards, requiring
10 to 15 hours of professionaldevelopment per staff member on
average.
No additional funding DWER hasprovided no dedicated grants or
(07:29):
subsidies to assist RTOs withthese reforms.
Why does this matter?
With core funding down by 80%in recent contract rounds, many
private RTOs lack the cashreserves to cover these
compliance costs, riskingfurther closures Without proper
resourcing.
Some providers may struggle tofully embed the new standards,
(07:50):
potentially affecting trainingquality and triggering
non-compliance sanctions.
Struggle to fully embed the newstandards, potentially
affecting training quality andtriggering non-compliance
sanctions.
Between 1 July 2024 and 16 June2025, australia faced a surge in
business failures that rippledstraight into the VET sector.
The 2023-24 financial yearmarked a record 11,053 companies
(08:17):
entering externaladministration, the highest
since the global financialcrisis.
This trend accelerated in2024-25, with 12,405 businesses
collapsing between January andNovember 2024.
Ghost college shutdowns August2024.
(08:39):
The Albanese government closedover 150 dormant ghost colleges
and issued warning notices to140 more, aiming to curb
providers enrolling students forvisas without genuine training,
to curb providers enrollingstudents for visas without
genuine training.
However, this sweep riskedcatching reputable RTOs in the
(09:02):
net.
The collateral damages thatmany RTOs caught up in the Ghost
College crackdown were genuineproviders who had paused
delivery due to lack ofinternational students or
government funding.
And then there was theAutomatic policy 1 July 2024.
Asqa implemented a ruleautomatically lapsing the
registration of the RTO thathadn't delivered training for 12
(09:24):
consecutive months.
Now let's have a look at somereal stories, or some of our
clients.
We have a client that's anot-for-profit provider in New
South Wales and, as of 1 July2025, this community-focused
provider experienced a 60%reduction in its Martins Guild
(09:45):
funding, forcing it to halve allof its training and cut back on
all of its staff cutback on allof its staff.
In Victoria, we have an RTOthat earlier this year
experienced up to 80% cut instate contract funding.
That led to cancellation oftraining and courses and the
(10:05):
redundancy of trainers.
There's also been a number ofliquidations in our industry a
number of liquidations in ourindustry.
One such is EduWorks, which isan RTO consulting organisation
that's been around for around 16years and the liquidator was
appointed on the 17th of March2025.
(10:26):
This is partially due to RTOsnot being able to pay their
bills, not having sufficientfunds to be able to cover all of
the compliance risks that theyneed to cover, which has forced
a well-known consultingorganisation going into
liquidation and all of theirstaff being made redundant.
(10:48):
There's also been examples ofbooks and stationery companies.
There was one in Brisbane, asupplier that entered into
voluntary liquidation on the18th of March 2024, owing over
$5 million to creditors.
Another such is a venue wherethey hold training venues, so
(11:12):
they were liquidated on the 29thof April 2025 with over $1.4
million owed to the ATO.
These frontline accounts showthat, beyond the statistics,
real organisations andlivelihoods are unravelling.
In the next section, we'llexamine the superior outcomes
private RTOs deliver and whyshifting to a performance-based
(11:35):
funding model is critical topreserving choice, quality and
jobs in Australia's VET sector.
Despite navigating severefunding cuts and looming
compliance reforms, private RTOscontinue to deliver superior
student and employer outcomesacross multiple metrics
(11:56):
completion rates, graduateemployment, employer
satisfaction and costeffectiveness.
This section outlines the harddata demonstrating private
providers' strength,underscoring why
performance-based funding isessential to sustain quality and
choice in Australia's vetecosystem.
Ncver's 2023 report showsprivate RTOs achieved an overall
(12:23):
of 54.2% qualificationcompletion rate, compared with
43% at TAFE Institute a gap of11.2 percentage points,
demonstrating private providers'effectiveness in guiding
students to the finish line.
Breaking it down by levelCertificate 1, private providers
(12:45):
38.5% versus 22.5%.
For TAFE.
Certificate 2, 50.8% versus33.8%.
Certificate 2, 50.8% versus33.8%.
Certificate 3, 57.9% versus51.9%.
Certificate 4, 51.9% versus 44%.
(13:06):
Ncver notes these completionadvantages have persisted over
the last five years, reflectingprivate RTOs' consistent
performance amid sector upheaval.
The VET Student Outcomes 2023survey reports that 50.6% of
graduates who were unemployedbefore training found employment
(13:28):
after completing theirqualification and 37.8% of those
already employed moved tohigher skilled jobs,
highlighting VET'stransformative impact.
Two-thirds of Certificate I orabove graduates experience
improved employment statuspost-training up to 2.6% from
(13:51):
the prior year.
Private RTOs outshine TAFE inemployer ratings across key
dimensions Relevance of skillstaught 85.7% for private versus
80.1.
Flex% Trainer industry currency86.3% versus 76.8%.
(14:13):
Standard of assessment 87.8%versus 72.9%.
These figures confirmbusinesses trust private
providers to deliver job-readygraduates tailored to industry
(14:35):
requirements.
According to the 2023 NationalStudent Outcome Survey, 90% of
private RTO graduates expressedsatisfaction with their training
, compared to 85% at TAFE,reflecting stronger engagement
and support in private settings.
Moreover, 92% of private alumniwould recommend their course to
(15:01):
others, underscoring theperceived value of their
experience.
These statistics have beentaken from ncvereduau Industry
body.
Iteca highlights that privateRTOs deliver equivalent outcomes
at a fraction of the cost.
Deliver equivalent outcomes ata fraction of the cost.
(15:25):
A dollar of a taxpayer fundingin private RTOs generates the
same training outcomes thatwould cost $3.73 in TAFE,
demonstrating efficient use ofpublic dollars without
sacrificing quality.
A recent NCVER study reports94.5% of trade apprentices were
employed six monthspost-completion in 2023,
(15:46):
outpacing the 88.9% employmentrate for university graduates
and showcasing VET's direct linkto work-ready outcomes.
Professions such aselectrotechnology both starting
wages at $82,900, nearly on parwith commencing doctors, further
(16:07):
affirming VET's marketrelevance.
Vet enrolments exceeded $1.26million in 2023, a 5% increase
from 2022, with TAFE enrolmentsrising by 8.3% thanks to
fee-free initiatives.
Yet private RTOs remain crucialin servicing niche and regional
(16:30):
demands, maintaining programdiversity, critical for skills
gaps.
Ncver's Employer Views Reportconfirms a sustained high level
of engagement, with 84% ofemployers using accredited
training and reportingsatisfaction across both private
and public providers.
(16:51):
This data underlines thatprivate RTOs not only match
public providers in scale, butexceed them in quality and
efficiency, strengths thatfunding models must reward
rather than penalise.
Here's the critical juncture.
The 2026 funding allocationsare being finalised right now.
(17:13):
If private RTOs don't secureperformance-based and
transparent funding in thisround, we will see the steepest
wave of closures ever recorded.
Entire programs hospitality,aged care, health support, it
trades could vanish, trainerswill be laid off, classrooms
(17:35):
will be closed, students willhave nowhere to go, in
particular in regional areas.
And let's be clear this ispolitical, not technical.
We know how to run compliance.
We know how to measure outcomes.
We have evidence NCVER data,asqa audits, employer surveys,
(17:57):
student feedback that privateRTOs deliver.
The question is will ourdecision makers listen?
Remember, compliance doesn'thave to be a burden.
It can be your superpower, butonly if we use it as a
foundation for collective action.
Right now, private RTOs arefacing more than just funding
(18:19):
cuts.
We're facing the possibledismantling of the most agile,
high-performing part ofAustralia's vocational education
system.
We know the value we bring.
We know our data backs us.
The only question left is willwe raise our voices before it's
too late?
Australia's private RTO sectorsurvives on real collective
(18:44):
voices.
Mere LinkedIn posts won't movethe needle To secure
performance-based, transparentfunding and preserve vocational
choice.
We must transform slacketivisminto practical action.
I'm going to give you someessential steps, backed by
evidence, on what makespetitions and grassroots
(19:06):
mobilisation effective.
Social media likes and sharesfeel empowering, but without
concrete follow-through theyamount to slacketivism.
Low-effort activism that rarelyproduces policy change.
Research shows that e-petitionscombined with direct pressure
low-effort activism that rarelyproduces policy change.
Research shows that e-petitionscombined with direct pressure
(19:27):
on decision-makers significantlyincrease the likelihood of a
response.
Signatures alone isn't enoughunless accompanied by calls,
emails and meetings.
Thousands of successfulAustralian campaigns, from
saving public parks to wipingout HECS debt, began with
(19:49):
petitions that surpassedcritical signature thresholds.
Nearly 300,000 signatures ledto the HECS reform.
Add your name now.
Go to https://changeorg_ Save_Private_rtos
Encourage supporters to email,call or meet their local MP.
(20:11):
Decision makers rank direct,consistent contract emails 32.7%
, phone 19.2% and in-person23.1% as more persuasive than
social media tagging 11.5%.
Provide pre-written templatesand scripts to make their
(20:33):
outreach simple and effective.
Petitions that includeauthentic narratives of impact
resonate more deeply.
Describe your RTO's funding,cut staff layoffs or student
delays.
These first-hand accountscompel MPs to act and act now.
Host a local RTO day of action,virtual town halls or small
(20:59):
group meetings with MPs ofaction virtual town halls or
small group meetings with MPs.
Collective events demonstratecommunity strength far beyond
isolated social posts.
And watch this space.
We have a lot coming forward.
Evidence for sector-widemobilisation Petition victories
(21:21):
Change.
org Australia reports 3,256victories since 2011, with 906
formal responses from decisionmakers, showing that organised
petitions can reshape whencombined with follow-up actions.
Your next steps Sign and share.
(21:42):
Put your name on our petitionthe links are in the show notes
or go to changeorg backslash,save underscore private
underscore rtos and ask fivecolleagues to do the same for
the email template that I'veprovided in the show notes to
(22:03):
your local MP and follow upwithin a week.
Post your story in our Facebookgroup and tag three peers.
Then post a short video callingon your network to take the
petition further.
Stand up now, not just withsocial media posts, but with
clear, measurable actions when3,000 plus sector voices unite,
(22:27):
we will transform policy, securefair funding and ensure private
RTOs continue to deliver thequality training Australia needs
.
Sign the petition.
Go to https://change.
org/ Save_ private_ RTOs.
Share your story on Facebookand LinkedIn.
Contact your local MP.
(22:48):
Thank you for joining me onthis urgent, essential episode
of the RTO Superhero Podcast.
The next 12 months will definethe future of private vocational
training in Australia.
If you believe in choice,quality and innovation, sign,
share and contact.
(23:08):
Let's turn compliance intocollective action and ensure our
sector not only survives butthrives for generations to come.
I'm Angela Cornel Richards, ceoand CEO and founder of Vivacity
Coaching and Consulting.
Stay compliant, stay empoweredand I'll see you next time.
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