Third-Party Arrangements – What does this mean for your RTO?

ASQA has published an updated guide 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.

If you have an existing third-party arrangement, you should have already received an email from ASQA with information about the new requirements and the transition period.

What do you need to know?

ASQA has provided a fact sheet – third party arrangements, which available by clicking on this link. It discusses the changes and what RTO’s need to know.

What you can do:

An RTO can engage another RTO under a third party arrangement to deliver training and/or conduct assessment on their behalf, as long as:
- the third party RTO has the relevant course on scope.
An RTO can engage a non-RTO (either a natural person or legal entity) under a third party arrangement to deliver training and/or conduct assessment on their behalf, as long as:
- this is done entirely in the RTO’s name and on the RTO’s behalf.
Trainers and/or assessors engaged by an RTO as an employee or contractor can deliver training and assessment for the RTO without being subject to the requirements in the Standards for RTOs that govern third party arrangements.
Services other than the delivery of training and conduct of assessment can be delivered using third party arrangements, providing these comply with the requirements of the NVR Act and the Standards for RTOs.

What you cannot do:

An RTO cannot engage a non-RTO third party to provide training and/or assessment for ‘VET courses of concern’ without prior written approval from ASQA.
An RTO cannot use a third party arrangement to avoid responsibility for compliance with the NVR Act or the Standards for RTOs and is wholly responsible for all services provided on its behalf.
An RTO cannot engage another RTO to deliver a VET course on its behalf, unless the third party RTO has that course on scope.
A non-RTO third party cannot offer to provide or provide a VET course under its own name. That is, a third party cannot:
- advertise, offer to provide or provide a VET course in its own name
- issue qualifications or statements of attainment in its own name or with its logo included.

In addition, ASQA have also provided a new General Direction – third-party arrangements for training and or assessment of VET courses, which you can find by clicking on the link.

This General Direction provides clarity and guidance on third-party arrangements permitted under the National Vocational Education and Training Regulator Act 2011 (the NVR Act). It is a condition of registration that an ASQA registered RTO must comply with any such General Direction.

ASQA requires all RTO’s entering into a third-party arrangement to have a written agreement. The Standards for RTOs require you to notify ASQA within 30 days of your RTO entering into, or cancelling, a written agreement with a third party.

If you have any concerns or questions, please contact ASQA at; enquiries@asqa.gov.au

Sukh Sandhu

Executive Director

Sukh has been working in the VET and Higher Education Industry for over 25 years. In this time, he has held several roles with RTO's and Higher Education Providers (HEP) including CEO roles for International Colleges and National Compliance and Quality Assurance Manager roles for several RTO's, TAFE's and Universities. Sukh has also worked for the Australian Skills Quality Authority (ASQA) as a Business Systems Project Official. Sukh is a Canadian permanent resident and Australian citizen.

Sukh has had extensive project management experience in risk management, compliance, administration and as a training consultant. He has extensive knowledge in government compliance standards and has participated in nearly one hundred audits across Australia and provided consultancy advice regarding ASQA/VRQA, TEQSA, ACPET, DET-HESG, VQF/Higher Education, ELICOS, NEAS, ANMAC, AHPRA, CRICOS, ESOS and ISO.

Sukh is a member of several independent professional organisations and government bodies including, ACPET, VELG, ACS, AITD, MARA, MIA, ISANA, APEX, IEEE, The Internet Society (Global Member), AISIP, IAMOT, ACM, OISV, APACALL, IWA, Eta Kappa Nu, EDSIG and several others.

Sukh's qualifications include two MBAs, three masters in IT and systems, a Graduate diploma of management learning, Diploma in training design and development, Diploma in vocational education training, Diploma of work, health and safety, Diploma of Quality Auditing, Advanced diploma of management, Advanced diploma in marketing, human resources, information technology, and a number of other courses and qualifications. He has been working as a lecturer and as a trainer and assessor since 1998, Sukh has been a vocal advocate of audit reforms and system centred auditing practices rather than auditor centred auditing practices for many years.