Yes, an RTO can use a third party to deliver training and assessment on its behalf, but only under a written agreement that meets specific requirements, and the RTO stays fully responsible for compliance. From 1 July 2025, the rules sit in section 17 of the compliance standards for NVR registered training organisations. The agreement must be in place before the third party delivers anything, it must contain particular terms, and the RTO must notify the Regulator within 30 calendar days. Outsourcing delivery does not outsource your obligations.
This guide explains what the rules require, how a third party arrangement is meant to work, the risks that catch RTOs out, and a practical checklist. It is general information, not legal advice. For your own arrangements, speak to a compliance specialist or lawyer.
Disclaimer: This article does not address Third Party Agreements, RTO to RTO or school Third Party Agreements.
What the rules say
The Compliance Standards instrument, which commenced on 1 July 2025, covers third party arrangements in Part 2, Division 3 (Accountability). You can read the text in the National VET Regulator compliance standards instrument. ASQA explains how to apply it in its Accountability Practice Guide.
In short, where a third party delivers services for your RTO, you must have a written agreement that:
- Is signed early. It must be entered into "as soon as reasonably practicable prior to the third party delivering any of the services" in the agreement.
- Requires cooperation with the Regulator. The third party must cooperate if the National VET Regulator audits your RTO.
- Requires accurate information. The third party must respond accurately to Regulator requests for information about the services.
- Stops the third party using your credentials. It must prohibit the third party from using the NRT logo, using your branding, or issuing AQF certification documentation.
- Includes the basics. That means the business or trading names of both parties, the start and end dates, each party's obligations for delivering the services, and your entitlement to regularly monitor service quality.
Then there is the notification rule. You must tell the Regulator about each agreement within 30 calendar days of entering into it, or before its obligations take effect, whichever comes first. You must also notify the Regulator within 30 calendar days of an agreement ending.
The practice guide adds that agreements should set out each party's roles and responsibilities, and how you will monitor the third party's performance, service quality and compliance with the Standards. ASQA also publishes the same guidance on its Accountability Practice Guide web page. Treat the guide as ASQA's expectations for how to meet the requirements, and treat section 17 as the legal baseline.
What "on your behalf" means in practice
A third party arrangement is where another organisation delivers some of your services, such as training or assessment, under your registration. The student's qualification is issued by you, and you are accountable for the quality of the service they receive.
Common examples include:
- An employer or industry partner that delivers training to its own staff using its own trainers, while you assess and certify.
- A specialist provider that delivers a unit or a workplace component you do not have the capacity to run.
- A venue or workshop partner that provides facilities and trainers in a region where you are not based.
Each of these needs a written agreement, a notification to the Regulator and active monitoring. The details depend on the services involved, so it is worth getting your agreement checked by someone who knows the Standards.
What the third party cannot do
The rules draw a clear line around identity and certification. Under the agreement, the third party must not:
- Use the NRT logo.
- Use your branding.
- Issue AQF certification documentation.
The practice guide adds that students should be told their AQF certification will be issued by the RTO, not the third party. That has a marketing consequence: a third party advertising its own "nationally recognised training" with your logo or its own certificates is a compliance problem for you.
The main risks
ASQA's practice guide lists the risks it sees. The ones that trip RTOs up most often are:
| Risk | Why it matters | What to do |
|---|---|---|
| Believing outsourcing removes your obligations | Your compliance responsibility does not transfer to the third party | Keep delivery quality, assessment and student support inside your monitoring system |
| Delivery starts before the agreement is signed | The agreement must be in place before services begin | Make signing a gate before any delivery or enrolment |
| Not notifying ASQA | The 30-day deadlines apply to new and ending agreements | Diarise both dates when the agreement is signed |
| Weak due diligence | The guide flags commitment, capability and capacity, including staff fitness and propriety | Check trainer and assessor credentials, facilities, finances and track record before signing |
| Not resourcing monitoring | Quality problems stay hidden until an audit | Assign named staff and a schedule, especially with several arrangements |
| Students not told who does what | Students must know when a third party is involved and how to complain | Put the division of roles in enrolment information and complaint pathways |
| Offshore third parties | They may not know Australian laws or the VET Quality Framework | Brief them on the Standards, and check they can meet them |
| Third party branding and certificates | The agreement must prohibit NRT logo, your branding and AQF certificates | Include the prohibition and check marketing material |
Two further points are easy to miss:
- Annual declaration. Where you have third party arrangements, the practice guide says the CEO must verify the third party's compliance before completing the Annual Declaration on Compliance. Ask to see evidence that the third party is meeting its obligations.
- Prepaid fees. The guide says prepaid fees received by a third party count towards the $1,500 threshold, so your fee protection obligations apply to those fees too.
A practical due diligence checklist
Before you sign, work through these questions:
- Does the third party have the commitment, capability and capacity to deliver?
- Have you verified the qualifications and currency of its trainers and assessors?
- Does it have suitable facilities, equipment and student support?
- Are its key people fit and proper, and is its financial position sound?
- Does it understand the Standards and its duty to cooperate with the Regulator?
- Will it follow your policies for assessment, complaints and student wellbeing?
- Have you agreed how and how often you will monitor its delivery?
- Do you have a plan for what happens if it fails to meet the agreement?
Keep the evidence. The guide lists evidence that a written agreement was in place before services began as an example of what an RTO should be able to show.
What to put in the agreement
Beyond the minimum terms above, a well-built agreement usually also covers:
- The specific units, qualifications or services being delivered.
- Who handles enrolment, assessment, recognition of prior learning and student records.
- Trainer and assessor requirements and how changes in staff are communicated.
- Reporting, review meetings and audit access, including how you will monitor quality.
- Complaints and appeals, and how students are told about them.
- Marketing approvals so the third party's advertising matches your obligations.
- Termination, handover of student records and what happens to students mid-course.
This is not a template or a substitute for advice, and the right terms depend on your arrangement.
How RTO Consultant can help
RTO Consultant offers audit and compliance support for registered training organisations, including site, desk and hotspot audits against the 2025 Standards and ready-to-use policies and templates for the 2025 Standards. If you are considering a third party arrangement, an independent review of your agreement and monitoring plan before you sign is cheaper than fixing a problem after an audit.
You may also find these resources useful:
- Our post on the advantages and disadvantages of third party agreements for a non-RTO, which looks at the arrangement from the other side.
- Our guide to CEO obligations in an NVR registered training organisation, which is relevant to the Annual Declaration on Compliance.
- Our post on whether you are ready to become an RTO, which is tagged with third party agreements and compliance and audits.
- Our list of 10 things about RTOs that may surprise you.
- Our RTO frequently asked questions.
- Our post on empowering RTO staff through skill development, useful for building monitoring capability, and RTO Consultant's professional development page.
Frequently Asked Questions
Can an RTO use a third party to deliver training?
Yes. The services must be governed by a written agreement that meets the requirements in section 17 of the compliance standards, and the RTO must notify the Regulator within 30 calendar days.
Does the RTO stay responsible for compliance?
Yes. ASQA's practice guide says outsourcing does not transfer your compliance obligations to the third party.
When must the written agreement be signed?
As soon as reasonably practicable before the third party delivers any of the services in the agreement. Do not let delivery start first.
Do I have to tell ASQA about a third party agreement?
Yes. You must notify the Regulator within 30 calendar days of entering into the agreement, or before its obligations take effect, whichever is earlier. You must also notify within 30 calendar days of it ending.
Can a third party issue certificates?
No. The agreement must prohibit the third party from issuing AQF certification documentation. Your RTO issues the certification.
Can a third party use my RTO's logo or the NRT logo?
No. The agreement must prohibit use of the NRT logo and your branding.
What do I have to tell students?
Students should be told when a third party is involved in their training and assessment, who is responsible for what, how to give feedback or complain, and that the RTO will issue their certification.
What are the biggest risks?
Starting delivery before the agreement is signed, not notifying ASQA, weak due diligence, not resourcing monitoring and assuming outsourcing removes your obligations.
Talk to a compliance specialist
If you're planning or reviewing a third party arrangement, book a consultation with RTO Consultant or call 1800RTO101. You can also explore the RTO Consultant blog for more on the 2025 Standards.
Book a ConsultationThis article is general information, not legal advice. Requirements may change and differ between arrangements, so check the current instrument and ASQA guidance and seek independent advice before entering a third party agreement.