Comprehensive Guide To Change Of Ownership Requirements Of RTOs

December 23, 2020    rtoadvisoryperth

Currently, there are about 3000 RTOs in Australia serving the nation by training students under Vocational and Educational Training (VET) purposes. These training serve the students under Australian Skills Quality Authority (AQSA) These training services are approved and performed under government jurisdiction. What if you own an RTO and wish to shift the ownership? RTO change of ownership services is a quite lengthy process and requires a lot of paperwork. The best way to go through these legalities is by consulting an advisor who may project his expert advice on this requirement. There are many RTO accounting specialists in Perth who offer guidance and helps you through the process to turn the hideous, lengthy task into an easier, co-operative one! This article attempts to guide you through RTO change of ownership services.

There are several rules pertaining to the change of ownership. When you own a Registered Training Organisation, the registration is made under the owner i.e. your name. Now, first of all, you are barred from shifting your registration from one corporate body to another. That is illegal and you have to follow a certain procedures to make a successful shift. RTOs are registered with the nationally serving AQSA and all the details about various RTOs are kept in the government record.

What Exactly Happens Under This?

Change of ownership refers to changing shareholders.

If shareholding is shifted from one establishment to another and the ACN/ABN connection is not disrupted, the RTO provider needs to inform this to the AQSA and continue with his position. There is a process which involves a series of work with the AQSA and their response.

The change of ownership affects the following areas of the registration provider -
• The financial position is affected
• Training provider merges into another training provider
• Brings changes to ABN/ACN legalities
• Changes to positions of executive powers, registered powers, principal executive powers etc.

The application registration is verified and reviewed under certain conditions, primarily how the applicant is thorough in his training of VET. This process is lengthy and inquisitive in nature because here, the applicant is thoroughly verified and checked to see if he can independently deal with the training process of VET and have enough resource to support these training. Since, these trainings are extremely important to build future Australian employers for the skill building and other industries, ASQA takes this quite seriously.

ASQA lodges a scrutiny program to understand two things primarily -

The provider is skilled and experienced enough to provide quality VET training and the related courses to the applicants The provider is resourceful enough to be able to deliver training courses at its best.

What Are The Things To Consider While Purchasing A Training Provider Through Shareholdings?

Know Your Provider Well

It is very important to know the registration provider and his compliance history before jumping into conclusion. Questions about his presently running registration period, regulatory activities, any history of having non-compliance, time of conducting ASQA audits are some of the basics that you need to know. Take help from your consultants in such cases. ASQA's intricate scrutiny assessment programs are time taking. Staying clear with the history of your provider will help you by not pushing this inquiry process any further because that will delay things.

Know What Is Required For The Registration

It is mandatory for you to have full knowledge about your responsibilities that lie with AQSA and the quality of VET framework. You have to go through a lengthy process of consulting and verifying to the legislative body of VET to check whether you can proceed with the purchase. For this, you need to know the conditions that VET expect to be met -

• Australian Quality Framework
• Fit And Proper Person Requirement (2011)
• Standards For RTOs (2015)
• Financial Viability Risk Assessment Requirements (2011)
• Data Provision Requirements (2012)

Along with the following legal verifications, you must ensure that you will comply with the compliance clauses and abide by the obligations set by ASQA. All your payments are done and successful completion is license requirements.

Evidential Documents Required

Notifying ASQA about material changes is necessary. The newly owned must show that they fit and proper with experience, to provide training and they are financially resourced. The self assessments tools are required to be filled out. You must notify the ASQA authority about your provider's registration, whether he is VET registered or not.

Possible Scope For Getting Registered

What ASQA considers here is whether you are able to provide training or not because that decides on the skill based learning and subsequent future of the next set of Australian employers. You need to possess all the necessary resources required for training purposes. After application, AQSA's verification process checks vigorously to see you are eligible for purchasing. So, make your choice wisely.

Learn more about how the previous provider worked through their student record process. Get in touch with your consultant and do a little research about the provider before ringing the final bell.

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