Recent amendments to the NVR Act introduce automatic lapse of registration for RTOs with 12 consecutive months of nil delivery. Here’s what you need to know.
On 29 March 2024, significant changes were made to the National Vocational Education and Training Regulator Act 2011 (NVR Act) through the National Vocational Education and Training Regulator Amendment (Strengthening Quality and Integrity in Vocational Education and Training No.1) Act 2024. One of the key amendments introduces the automatic lapse of registration for registered training organisations (RTOs) that do not deliver any training and/or assessment for a consecutive period of 12 months or more from any date on or after 1 January 2023. This 12-month period is referred to as the “measurement period.”
ASQA has already sent notices of lapse of registration to RTOs, informing them of this decision.
Automatic Lapse of Registration:
Under the new provisions, an RTO’s registration will automatically lapse if it does not deliver any training and/or assessment to VET students for 12 consecutive months from any date on or after 1 January 2023. ASQA will notify affected RTOs of the lapse and require them to return their certificate of registration within 10 days of notification.
Requesting an Extension to the Measurement Period:
RTOs can request an extension to the measurement period for non-delivery. The request must be made at least 90 days prior to the RTO’s lapse date. ASQA has no power to unilaterally extend the measurement period; the RTO must make an application.
To be considered for an extension, an RTO must provide details of the circumstances outside its control that caused the non-delivery, along with supporting evidence. ASQA intends to grant extensions sparingly and only in select and specific circumstances where compelling reasons beyond the provider’s control can be demonstrated, such as:
- Exceptional personal circumstances (e.g., death or prolonged illness of an Executive Officer in a small RTO)
- Exceptional external circumstances (e.g., major fire, flood, or pandemic events)
- Critical VET workforce shortages (e.g., a regional RTO unable to deliver due to an ongoing shortage of trainers and assessors)
The extension request must be supported by evidence of the extenuating circumstances, identify the length of the requested extension (up to a maximum of 12 months), and include a detailed plan for resuming delivery.
Reasons unlikely to warrant an extension include:
- A protracted sale or intention to sell the RTO
- Dormancy while awaiting CRICOS registration or state funding contracts
- Deliberate “hibernation” of an RTO by avoiding training and/or assessment in its first registration period
- Lengthy overseas travel or voluntary absence by an Executive Officer
RTOs can request an extension via the “Request to extend measurement period” webform. ASQA will notify providers of the outcome before the lapse date. If an RTO disagrees with ASQA’s decision, it may apply for reconsideration.
Transition Period for Lapsed Providers:
Transition provisions are in place for RTOs whose registration would have lapsed prior to 1 July 2024 due to 12 continuous months of nil delivery. These RTOs will not lapse until 1 July 2024. They can still request an extension to the measurement period, but the request must be received by 1 May 2024 (60 days prior to the lapse date).
Conclusion:
The introduction of automatic lapse of registration for RTOs with 12 consecutive months of nil delivery is a significant change aimed at addressing integrity risks in the VET sector. RTOs must be aware of these new requirements and take necessary actions to maintain their registration, such as requesting an extension to the measurement period if they face compelling circumstances beyond their control that prevent them from delivering training and/or assessment.
