ASQA grants initial registration only when it is satisfied of two things: that the individuals managing the organisation are suitable, and that the organisation has the commitment and capability to deliver quality vocational education and training (Guide to initial RTO registration). An application is checked for completeness first, then assessed, and information that is non-compliant or inaccurate will cause the application to fail. This article focuses on the fit and proper person and financial viability requirements.
Who is assessed?
The Fit and Proper Person Requirements (FPPRs) sit in the 2025 Compliance Standards instrument, so they are part of the legislation you are measured against, not just a form. They apply to every governing person: an executive officer, a high managerial agent, or anyone responsible for overseeing, directing or exercising a degree of control or influence over the management or operation of the RTO (ASQA: fit and proper person declaration). Each governing person must submit a declaration when the RTO applies for initial registration, applies for renewal or appoints a new governing person, and ASQA may require a declaration from any individual at any time (ASQA: regulatory expectations). The obligation is continuing, not a one-off step at lodgment.
It is important to note that all shareholders, holding 15% or more must complete a Fit and Proper Person form, even if they are not actively involved in the RTO. This includes spouses, family members and silent investors.
What the declarations ask about
The declaration asks governing persons about their history. ASQA's Practice Guide groups the matters it may consider under six headings: compliance with law, management history, financial record, provision of information, previous conduct and involvements, and additional considerations. Expect to disclose, and to evidence:
- any criminal convictions, in Australia or overseas, and any proceedings currently before a court or tribunal
- any disqualification from managing corporations
- any cancellation, revocation, suspension or rejection of a registration as an RTO, and any breach of a registration condition
- any bankruptcy or insolvency history
- any Immigration Minister's suspension certificate
- any associations of self or family members, past and current, with RTOs
- any association with an organisation that breached an Australian, state or territory government training contract
The FPPRs depend on timely and accurate disclosure, and ASQA expects an RTO to be able to show robust due-diligence arrangements that give assurance its governing persons are suitable (ASQA: regulatory expectations). Giving false or misleading information to a government agency is itself one of the matters the declaration covers, so an inaccurate or misleading answer creates a new problem rather than concealing an old one. Read the form slowly and make sure you disclose all relevant information. If in doubt you are better off disclosing information for ASQA to determine if it is relevant.
When is the Fit and Proper Person Form to be complete?
The form is to be completed by all relevant personnel at initial registration, when adding new investors (over the 15% shareholding) or new team members who fit the description of a managerial agent, at RTO renewal and whenever requested by the regulator. Each person completes and signs their own form, and the RTO should keep a copy of every declaration it submits.
Financial viability
Every initial RTO application must include the financial viability risk assessment tool and supporting documentation created by ASQA and available on their website (ASQA: submit your application). ASQA's guide also expects applicants to have an accountant review their financial position before they submit (Guide to initial RTO registration). Practical steps:
- Prepare cash-flow projections that run from lodgment until delivery generates enough revenue to cover your costs, and state your assumptions.
- Show how you will fund staff, systems, premises or platforms, and the regulator's fees.
- Make the figures consistent with your business plan, enrolment assumptions, intended growth and proposed scope.
Financial Viability checklist
- Use ASQA’s template, don’t try creating your own or amending the template as it will be rejected
- Make sure that the Financial Risk Viability Assessment is completed in conjunction with a suitably qualified accountant
- Submit a current bank statement that is no more than 5 days old
- Make sure the accountants sign off on the Financial Viability Risk Assessment is completed no more than 30 days before submission
- Ensure all sections are complete and only submit if the ratios result in a green indicator
Before submission
- Every governing person has completed a declaration, and each answer is accurate, complete and supported by evidence.
- The CEO's statutory declaration is signed and consistent with the rest of the file.
- The financial viability risk assessment tool is complete, an accountant has reviewed it, and it reconciles with the business plan.
- Supporting evidence is attached, not promised.
Planning to apply for RTO registration? RTO Consulting can help you prepare an application that is complete and compliant the first time.
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