Newbery Consulting VET News – 16th August 2019

Hello and welcome to VET News,

No doubt many of you would have already been informed about the changes to third-party arrangements (click). From my perspective, this is one of the most significant changes to the VET landscape since the introduction of the National VET Regulator. There are many businesses out there at the moment who are trying to come to terms with the change of this new policy as it will completely disrupt their business.

We have had a number of phone calls already with the national regulator trying to interpret the language within the fact sheet and the general direction. I have also sent a written enquiry to seek clarification on the definition of the word “offer”. In my discussion with the national regulator and in our own reading, there is a fair bit of ambiguity around what is allowed and what is not allowed in regard to marketing. I hope to provide further advice in this in the coming weeks.

There are now only a very limited number of ways that a third-party arrangement can exist. These include:

  1. Where the third-party (who is not an RTO) is delivering services on behalf of the RTO and is not marketing its services under its own brand in any way (this is where we are seeking clarification). A franchise situation is a classic example. So, if this describes your situation, you will need to cease any current marketing under your own branding no later than 1 November 2019.
  2. Where the third-party (who is an RTO) is delivering services on behalf of the RTO and both organisations have the relevant training products on their scope of registration. Seriously, I have seen maybe one example of this in 20 years. It would be a very rare circumstance.

Essentially, that’s it. What effect will this have on the training industry? It is a question that I have been pondering for the last week. Back on 4 May 2018, I sent ASQA a series of emails highlighting my concerns about the consequences of their “raising the bar strategy” to restrict the registration of new RTOs. Broadly, I am actually in support of the strategy but the blunt way in which it was introduced has had consequences. I predicted that we would see an explosion in third-party arrangements and the administrative appeals tribunal would be choked with appeals resulting from the regulators punitive approach to bypassing the option of rectification and utilising the administrative appeals tribunal as one of its own regulatory mechanisms. I am sad to say that both of my predictions came true. My prediction now is that, we will see a flood of applications for initial registration come in over the next 6 to 12 months. These are businesses that have been displaced by the new third-party arrangements policy and have no other choice other than registering as an RTO. No doubt, this will lead to greater congestion in the administrative appeals tribunal unless the regulator buckles to the current pressure that it is under to clean-up the backlog in the AAT.

Talk about mixed messages! I wonder if they actually sit down and strategically plan this stuff? The other observation I would make about this new policy is the absolute blunt way in which it has been implemented. The fact is, there are some excellent third-party providers supporting their local communities. These guys along with all of the bad apples have been totally disrupted. So much for a risk-based approach! On the upside, the displacement of the third-party sector could have positive outcomes for existing RTOs with the removal of this competition. This could result in potentially a larger slice of the market and slightly higher fees due to the lack of competition. That will certainly be something I will watch with interest. Will keep you up to date.

Good training,

Joe Newbery

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Compliance & Regulatory News

2019-21 Regulatory Strategy Released

The Australian Skills Quality Authority (ASQA) has released its regulatory strategy for the 2019-21 period.

ASQA will be continuing its close scrutiny of trainer and assessor capability and of international education as well as a new target area, VET in Schools.

In 2019-21, ASQA will be closely scrutinising the delivery of:

  • CHC33015 Certificate III in Individual Support
  • CHC50113 Diploma of Early Childhood Education and Care
  • TAE40116 Certificate IV in Training and Assessment
  • CPCCWHS1001 Prepare to work safely in the construction industry
  • BSB50215 Diploma of Business.

For further information, click here.

Extension to transition period: MAE Aeroskills qualifications and UEG30114 Certificate III in Gas Supply Industry Operations

ASQA has recently approved an extended transition period for the following qualifications:

  • MEA20515 Certificate II in Aircraft Line Maintenance
  • MEA40715 Certificate IV in Aeroskills (Mechanical)
  • MEA50115 Diploma of Aeroskills (Avionics)
  • MEA50215 Diploma of Aeroskills (Mechanical)
  • UEG30114 Certificate III in Gas Supply Industry Operations

Read more

Extension to transition period

ASQA has recently approved an extended transition period for 13 High-risk work Units of Competency.

For further information, click here.

New guidance on third-party arrangements for delivery of training and assessment

ASQA has published updated guidance on third-party arrangements that will come into effect from 1 September 2019 for new third-party arrangements and 1 November 2019 for existing arrangements.

Read more

Other VET News

Exploring Career Pathways

Job Outlook has had an upgrade and has included a number of enhancements to help inform people looking to make a decision about their job search, study or training.

For further information, click here.

Articles and Papers

Higher Education VS Vocational Education

This paper shows that some university students with low school results would be better off doing vocational education instead, according to a new Grattan Institute report on Australia’s post-school education system. This report contains a detailed analysis of academic and employment outcomes, in particular for low-ATAR students.

Read more.

Upcoming Events

NSW Training Awards, 12th September 2019

The NSW Training Awards are conducted annually by Training Services NSW to recognise outstanding achievement in the vocational education and training sector. Tickets are now available.

Queensland Training Awards, 14 September 2019

Queensland Training Awards recognise individuals and organisations that strive for and have achieved success, best practice and innovation in vocational education and training.

2019 National VET Conference, Brisbane, 12 – 13 September 2019

The 2019 National VET Conference will be delivered over two days on the 12-13 September at the Brisbane Convention & Exhibition Centre (BCEC)  through an exciting range of presentations, providing attendees with the opportunity to engage in a wide variety of plenary and elective sessions. Pre-conference Master Classes will be held on Wednesday 11 September.


RTO Support

Newbery Consulting is pleased to offer one day consulting support. Consulting support is typically provided remotely but can also be provided onsite with Joe Newbery. Travel to the clients site will involve travel costs which will be invoiced at the completion of the visit.

Consulting support can include providing general or specific advice, reviewing a clients documents or other arrangements or advising on assessment or course development.

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RTO Audit

Newbery Consulting is pleased to offer an internal audit with a one day site visit to your RTO.

This service provides you a detailed report on your RTOs standard of compliance with the Standards for Registered Training Organisations 2015.

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