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the following information is required for metadata purposes, please ignore. [title]Components of AQTF 2007[/title] [summary]

AQTF 2007 includes:

[/summary] [coverage]Australia[/coverage] [audience]All Audiences[/audience] [industry]All Industry Sectors[/industry] [modified_date]1185717600000[/modified_date] [created_date]1183989600000[/created_date] end of page metadata information.

FREQUENTLY ASKED QUESTIONS (for RTOs/applicants)

1. What are the new AQTF Essential Conditions and Standards and how do they differ from the AQTF 2007 Essential Standards?

2. When am I required to comply with the new AQTF Essential Conditions and Standards?

3. What happens if I do not comply with the new AQTF Essential Conditions and Standards?

4. How do I find out further information about the new AQTF Essential Conditions and Standards and what they mean to me?

5. Can I provide feedback on the new AQTF Essential Conditions and Standards if there are areas that I think should change?

6. What is a fit and proper person test? (Condition 1)

7. Who must meet fit and proper person requirements? (Condition 1)

8. What ‘other legislative provisions’ would satisfy the fit and proper person test? (Condition 1)

9. What happens if a senior officer does not meet the fit and proper person test? (Condition 1)

10. How will the registering body assess my financial viability (Conditions 2 and 5)? How can I demonstrate financial viability? Who will decide whether I have met this requirement?

11. How do I locate an 'approved Tuition Assurance Scheme'? (Condition 5)

12. How do I demonstrate that I do not collect student fees in advance?

13. What is AVETMISS and what does it mean to me? (Condition 6)

14. Do I now have to buy AVETMISS compliant software? Is there a list of recommended software? (Condition 6)

15. How often do I have to submit data and who will see my organisation’s information and what will it be used for? Who do I contact from my registering body to find this out? (Condition 6)

16. If I have to submit AVETMISS data, why do I have to submit CCOS data as well?

17. What is a national unique student identifier and what do I have to do about it? (Condition 6)

18. I seek client feedback through the two quality indicator survey tools, so have I collected sufficient data for Elements 1.1 and 2.2?

19. How should I demonstrate that my assessment processes and tools are 'systematically validated'? (Element 1.5)

20. How do my obligations under Element 2.1 differ to Element 2.5?

21. What is an ‘agreement’?

22. How are applications risk rated?

23. Registering body contact details

General questions

1. What are the new AQTF Essential Conditions and Standards and how do they differ from the AQTF 2007 Essential Standards?


In December 2009 the Council of Australian Governments (COAG) endorsed amendments to the AQTF 2007 Essential Standards, to ensure there is greater protection of interests for all students undertaking Vocational Education and Training in Australia.


The AQTF Essential Conditions and Standards for Initial Registration and AQTF Essential Conditions and Standards for Continuing Registration (hereafter ‘AQTF Essential Conditions and Standards’) are the result.


The new AQTF Essential Conditions and Standards have strengthened the Conditions of Registration that apply to both existing RTOs and organisations that are applying to be registered under the AQTF for the first time. The revised Conditions of Registration will now be audited in the same way that compliance with the Standards is audited, providing stronger barriers to entry. This is to ensure that only quality providers are able to operate in the VET market for domestic or overseas students.


The AQTF Essential Conditions and Standards have been refined since being cleared by COAG, to ensure that they give effect to COAG’s intent. These refinements have been endorsed by the Ministerial Council for Tertiary Education and Employment (MCTEE).


The AQTF Essential Conditions and Standards are available from publications. Also available are user guides for the AQTF Essential Conditions and Standards for Initial Registration and AQTF Essential Conditions and Standards for Continuing Registration.


2. When am I required to comply with the new AQTF Essential Conditions and Standards?


The new AQTF Essential Conditions and Standards are to apply from 1 July 2010.

When first applying for registration, an applicant must comply with the Essential Conditions and Standards for Initial Registration. Once registered, the RTO must comply with the Essential Conditions and Standards for Continuing Registration.

Transitional arrangements for some Conditions of Registration have been agreed. These apply only to compliance with Condition 5 and Condition 6, in particular with the fees in advance options of Condition 5 and the AVETMISS data and unique student identifier requirements of Condition 6. Compliance with these conditions will not be required until 3 January 2011 or in the case of the unique student identifier, in accordance with the yet to published implementation plan. However RTOs/applicants may be required to provide evidence of planning to comply with these conditions by the transition deadline.


Information about the transitional arrangements and what is expected of RTOs/applicants in regards to these Conditions of Registration will be provided once known, and published on www.training.com.au.


RTOs/applicants must comply with all other components of the Essential Conditions and Standards from 1 July 2010.

3. What happens if I do not comply with the new AQTF Essential Conditions and Standards?


Non-compliance with the new AQTF Essential Conditions and Standards for Initial Registration will mean that your application for registration will likely be refused.

Non-compliance with the new AQTF Essential Conditions and Standards for Continuing Registration may result in a range of sanctions being placed on the RTO, which may include: additional conditions being placed on an RTO’s registration, an RTO being de-registered, or an application for renewal of registration being rejected.


4. How do I find out further information about the new AQTF Essential Conditions and Standards and what they mean to me?


Supporting AQTF documentation has been developed to support the new AQTF Essential Conditions and Standards. These documents build on the user guides and national guidelines developed for the AQTF 2007 Essential Standards.

There are now two user guides – one for initial registration and another for ongoing registration. National Guidelines for Registering Bodies have been streamlined and consolidated into a single document.

The supporting documentation is available online at www.training.com.au.

Your Registering and Course Accrediting Body can provide you with specific information about how the new AQTF Essential Conditions and Standards will apply in your jurisdiction. Registering body contact details are provided at Appendix A.

5. Can I provide feedback on the new AQTF Essential Conditions and Standards if there are areas that I think should change?

The AQTF Essential Conditions and Standards are to be subject to an ongoing continuous improvement process, and so feedback on the AQTF Essential Conditions and Standards and their implementation are always welcome. However, please note that further changes are likely to be kept to a minimum and will only be made after significant consultation is undertaken with relevant stakeholders and with endorsement by the Ministerial Council for Tertiary, Education and Employment (MCTEE).

Feedback on the AQTF Essential Conditions and Standards and their implementation can be provided via the AQTF Continuous Improvement Register available at www.training.com.au


AQTF Essential Conditions and Standards

Fit and proper person requirements

6. What is a fit and proper person test? (Condition 1)


Fit and proper person requirements are individual characteristics or past behaviour standards that must be met by individuals who are in a position to influence the management of an RTO. Failure to meet the requirements may impact on the suitability of the individual to contribute to the delivery of education and training.

A test of whether an individual satisfies fit and proper person requirements may consider past criminal convictions, any record of registration cancellations or conditions on registration, a history of personal bankruptcy or insolvency, disqualifications under the Corporations Act 2001 and other relevant matters.


Evidence of satisfying fit and proper person requirements will be determined by the relevant registering body, but could include:

  • a Statutory Declaration by each of the RTO’s senior officers, directors and substantial shareholders against the fit and proper person requirements established by the registering body (refer to AQTF National Guidelines for a Registering Body)
  • a national police check for each of the RTO’s senior officers, directors and substantial shareholders
  • a record of satisfying fit and proper person requirements of other legislation.

7. Who must meet fit and proper person requirements? (Condition 1)


The applicant/RTO’s senior officers, directors or substantial shareholders who are in a position to influence the management of the organisation must satisfy fit and proper person requirements. These requirements are to be met both at initial registration and at all times during an RTOs registration period.

A senior officer includes directors, secretaries and other people who manage an RTO. A senior officer of an RTO that is neither an individual nor a corporation means a partner in the partnership if the entity is a partnership or an office holder of the unincorporated association if the entity is an unincorporated association. It can also include a person who makes, or participates in making, decisions that affect the whole, or a substantial part, of the business of the entity or who has the capacity to affect significantly the entity's operations or financial standing.

Substantial shareholders in a listed company are those who hold an interest in 5% or more of the total number of votes attached to the voting shares in a company. Substantial shareholders in an unlisted company are those who hold an interest in 25% or more of the total number of votes attached to the voting shares in a company.

Individuals who are in a position to influence include those who make or participate in making decisions that affect the business of the RTO or who have the capacity to significantly affect the RTO’s operations and financial standing.

8. What ‘other legislative provisions’ would satisfy the fit and proper person test? (Condition 1)


The fit and proper person test is a subjective test and it may be applied in different ways in various jurisdictions and for various purposes. Your registering body can provide information on how they will assess the fit and proper person requirements, including what other legislative provisions they may consider to satisfy the fit and proper person test.


A registering body may decide that, if a person has been assessed as having met fit and proper person requirements in accordance with other legislative provisions, then that person may be deemed to have also satisfied the AQTF fit and proper person test. For example, a registering body may deem that you meet the requirements under AQTF if a person has previously met the fit and proper person test applied under the Education Services for Overseas Students Act 2001.

9. What happens if a senior officer does not meet the fit and proper person test? (Condition 1)


The fit and proper test is considered to be a ‘pass or fail’ requirement. If a senior officer, director or substantial shareholder who are in a position to influence the management of the applicant/RTO does not meet the fit and proper person test, the requirement is not met. It is likely that the registering body will not register the organisation as an RTO, or may deregister or impose sanctions if that person is not removed from their position of influence.

If you think that a senior officer, director or substantial shareholder may not satisfy the fit and proper person requirements, you should talk to your registering body. Registering body contact details are provided at Appendix A.


Financial viability

10. How will the registering body assess my financial viability (Conditions 2 and 5)? How can I demonstrate financial viability? Who will decide whether I have met this requirement?


The applicant/RTO must be able to demonstrate at the request of the registering body that it has the financial capacity to deliver quality training and assessment outcomes at the time of request and into the future.

The registering body will determine how an applicant/RTO is to demonstrate that it meets the financial viability requirements. The applicant may be asked to provide an independent assessment of its financial viability risk, or financial projections, or business plans so that the registering body can complete an assessment of financial viability risk.

The risk management section within the National Guideline for Registering Bodies provides guidance to the registering body as to the kinds of information that it may take into account when assessing financial viability risk. Registering bodies may also require additional information other than that suggested in the guideline.

For initial registration, applicants should provide financial projections for their first two years of operation reviewed by a qualified accountant to Australian Auditing and Assurance Standards. Supporting information may also be provided in the applicant’s business plan or market research regarding their financial assumptions (i.e. what is the basis for assumptions about projected costs, or student enrolment numbers and fees?).

RTOs will be assessed on the level of risk associated with their actual financial performance and position, as well as their financial viability risk going forward. Information that may be provided to demonstrate financial performance and position may include audited financial statements, financial records for the previous 12 months (profit and loss, balance sheets, cash flow and bank accounts), budgets and forecasts (including assumptions), information on current and projected student enrolments (including assumptions), tax records and information on debts, loans and legal disputes.

Applicants/RTOs should check with their registering body regarding how they are to meet the financial viability. Registering body contact details are provided at Appendix A.


Student fees

11. How do I locate an 'approved Tuition Assurance Scheme'? (Condition 5)

There are currently no approved Tuition Assurance Schemes. Advice on arrangements for approved Tuition Assurance Schemes will be provided on www.training.com.au later in 2010.

Given that it is not possible for applicants/RTOs to use this option to protect student, transitional arrangements have been agreed such that applicants/RTOs do not need to comply with the fees in advance options described in Condition 5 until 3 January 2011. However, Registering Bodies may ask applicants/RTOs to provide information about how they are planning to comply with these requirements by 3 January 2011 once information about approved Tuition Assurance Schemes has been made available.

It is advisable for applicants/RTOs to continue checking www.training.com.au regularly for information about approved Tuition Assurance Schemes.

12. How do I demonstrate that I do not collect student fees in advance?

If you do not collect student fees in advance, you do not need to comply with the options for protecting student fees set out in Condition 5. However, you will need to demonstrate that you do not collect fees in advance. The following may demonstrate that you do not collect fees in advance:

  • a documented fees, charges and refunds policy that is clear and transparent and which clearly indicates that fees are only accepted in arrears;
  • invoices or receipts for clients showing the dates payable are in arrears; and
  • bank account details and student enrolment records clearly showing that student fee payments are made in arrears.

Data compliance

13. What is AVETMISS and what does it mean to me? (Condition 6)


The Australian Vocational Education Training Management Information Statistical Standard (AVETMISS) for VET Providers is a national data standard that ensures the consistent and accurate capture of VET information about students, their courses, units of activity, and qualifications completed. It provides the mechanism for national reporting of the VET system.


Broadly speaking, it provides answers to the following questions about students in the VET system:

  • who they are: basic demographics like age, sex, indigenous and disability information, geographic location;
  • where they study: type of provider (e.g. Government or Private), location of training delivery; and
  • what they study: enrolments in units of competency, as part of a qualification, the result obtained for unit (outcome), how it was studied (e.g. classroom, workplace or online) and how it was funded.

RTO/applicants must have a student records management system in place that has the capacity to provide the registering body with AVETMISS compliant data.


An example enrolment form which contains suggested questions in AVETMISS format to include on your student enrolment forms (to be used in conjunction with your own local needs) is available from www.ncver.edu.au.

14. Do I now have to buy AVETMISS compliant software? Is there a list of recommended software? (Condition 6)


No you may not need to buy AVETMISS compliant software.


You may adopt one or more of these options for a student record management system to collect information in regard to training activity:

  • Commercial software;
  • In-house developed software; and
  • State and territory provided software

The option you choose will be based upon your own local needs and the reporting requirements of the state/territory training authorities where relevant. Some jurisdictions have additional publicly funded reporting requirements and their own arrangements regarding validation and acceptance of data if you receive government funding.


A list of known commercial software providers that Registered Training Organisations use to provide AVETMISS compliant data to states and territories is available from www.ncver.edu.au by selecting Statistical Standards - AVETMISS Support.


When selecting software, it is important to consider on-going maintenance and upgrade arrangements as changes are made to AVETMISS from time to time.

15. How often do I have to submit data and who will see my organisation’s information and what will it be used for? Who do I contact from my registering body to find this out? (Condition 6)

 

There have been no changes to the existing data reporting requirements, required of RTOs.

 


The current requirement is to have a system that collects AVETMISS compliant data in place and to provide returns of its client records of attainment of units of competency and qualifications to its registering body on a regular basis, as determined by the registering body.

16. If I have to submit AVETMISS data, why do I have to submit CCOS data as well?


RTOs will have the ability to view and edit data already supplied by them through national data collections, can elect to enter data directly, or can choose to import their data electronically. By supplying their data to the Competency Completion Quality Indicator Online System, RTOs will be able to create reports. This data can be provided to the Competency Completion Quality Indicator Online System by:

  • including all their activity in their current AVETMISS submission; or
  • importing or directly enter their data into the Competency Completion Online Quality Indicator System.

RTOs need to enter data annually for training activity that occurred in the previous year.


The system will be pre-populated on 1 May each year for those RTOs who submit data via their state or territory using AVETMISS.

17. What is a national unique student identifier and what do I have to do about it? (Condition 6)


A national unique VET student identifier is a unique national VET student number for all nationally recognised training. This is an important initiative aimed at better capturing information on student pathways, student entitlements, and qualifications completed.


The system and details for a national unique student identifier are currently being developed. You will not be required to capture this information until a national system is in place.


However, some jurisdictions have or are implementing a unique VET student number at the state level. If you are required to submit data as part of your funding arrangement this will be part their reporting requirements. You will need to contact the appropriate jurisdiction which will advise on collection requirements.


Essential Standards

18. I seek client feedback through the two quality indicator survey tools, so have I collected sufficient data for Elements 1.1 and 2.2?


Yes, if the RTO can demonstrate that the client feedback it collects through quality indicator survey tools is used to continuously improve client services and to act on relevant data for continuous improvement of training and assessment. However, collection of survey data alone without documenting or demonstrating how that data is used to improve service is not sufficient to meet the requirements.


19. How should I demonstrate that my assessment processes and tools are 'systematically validated'? (Element 1.5)


Validation involves focussing on assessment processes and tools to review and make recommendations for future improvements. Validation will be systematic if the RTO implements a comprehensive, documented plan for assessment validation and/or moderation. This plan should include:


  • when assessment validation and/or moderation will occur;
  • which units of competency/modules will be the focus of the activity in proportion to associated risk;
  • who will lead and participate in validation and/or moderation activities;
  • how the outcomes of these activities will be documented; and
  • how lessons learnt from assessment validation and/or moderation will be acted upon.
Assessment validation should be integrated with the RTO’s continuous improvement cycle. Detailed guidance on this requirement is provided in the User Guides.

20. How do my obligations under Element 2.1 differ to Element 2.5?


Element 2.1 requires RTOs to have a strategy in place to establish and meet the needs of all of their clients. Element 2.5 is specific only to learners, and requires RTOs to have a defined system in place to meet their individual needs.


The difference is that Element 2.1 is a broader requirement applying to all clients, not just learners. It is possible that an RTO could satisfy the requirements of both elements in a single client strategy/system, so long as it clearly deals with both requirements.

21. What is an ‘agreement’?

‘Agreement’ refers to the contract between the client and the RTO regarding the training, assessment and client services to be provided, and it includes information provided to clients before their enrolment or signing of a contract because this information defines the commitments made by the RTO.

Further guidance is provided in the User Guides.

Risk Management

22. How are applications risk rated?


Risk rating for existing RTOs is determined by assessing the likelihood and impact of non-compliance against three areas of risk: performance risk (history of audit compliance, data from quality indicators, history of complaints), financial viability risk and governance risk (including quality of business planning, and transparency of entity ownership and management structures).


Applicants for initial registration commonly do not have any performance history and therefore cannot be risk rated against performance indicators. However, applicants can still be assessed for financial viability and governance risks, based on the assumptions underlying their financial projections, their proposed organisational model and business plans.


These risk indicators are assessed to determine an initial risk rating which will determine the level of future monitoring including audits that the RTO will be subject to by the registering body.


Risk ratings will be reviewed over time, as new information is made available to the registering body. RTOs can provide new information affecting their risk rating to the registering body at any time.


An RTO's risk rating will be provided to the RTO on request. It will not be made publicly available.


Further information is provided in the audit consistency and risk management section of the National Guideline for Registering Bodies.

Appendix A: Registering body contact details

State and Territory Registering Bodies

Australian Capital Territory
ACT Accreditation and Registration Council
Tel: (02) 6205 7091
www.arc.act.gov.au

 

New South Wales
Vocational Education Training and Accreditation Board (VETAB)
Tel: (02) 9244 5335
www.vetab.nsw.gov.au

 

Northern Territory
Department of Education and Training
Tel: (08) 8901 1340
www.deet.nt.gov.au

 

Queensland
Department of Employment and Training
Tel: (07) 3247 5102
www.training.qld.gov.au/audit

 

South Australia
Department of Further Education, Employment, Science and Technology
Tel: (08) 8226 3065
www.training.sa.gov.au

 

Tasmania
Tasmanian Qualifications Authority
Tel: (03) 6233 6364
www.tqa.tas.gov.au

 

Victoria
Victorian Registration and Qualifications Authority
Tel: (03) 9637 2806
www.vrqa.vic.gov.au

 

Western Australia
Training Accreditation Council WA
Tel: (08) 9441 1910
www.tac.wa.gov.au

 

NARA
National Audit and Registration Authority
Ph 1300 00 6272
http://www.nara.tvetaustralia.com.au