Start-up costs to become an RTO

RTO Start Up Costs

RTO Start Up Costs

Start up costs to become an RTO – One of the foremost issues for those planning to set up an RTO is cost. How much will it cost for a consultant to assist me, how much for my resources, staff, operations, application, insurances and on-going fees. So lets provide you with a few insights into the key cost factors to consider:

Initial Considerations:

  • Consulting fees – start from $5,000 which can cover everything from attending registration audit, policy development, procedures, forms, course information, training and assessment strategies and development of all course-ware for delivery and assessment of your courses and programs.
  • Student management system – approximately $2,000
  • Learning management system – approximately $1,000 – only required if you are planning to deliver online courses
  • Venues for training – Varies depending on location and size of premises
  • Staff & Trainers – Can vary depending on the requirements and needs
  • Materials and equipment – Can vary depending on the course or training package
  • Application Lodgement Fee – $800 (Paid to the governing body eg ASQA)
  • Application Risk Assessment – $8,000 (Paid to the governing body eg ASQA)
  • Public liability insurance – from $1,000
  • Website development – from $800
  • Accounting fees – from $2,000
  • Marketing & Advertising – Can vary dependent on medium used

Annual Charges:

  • Annual registration fee – $1,130 (for up to 4 qualifications on scope, paid to the governing body eg ASQA)

The above are indicative costs only and may vary significantly so its a good idea to have an initial consult with a specialist RTO consultancy firm first.  Most consultancy forms will offer you free consultation to at least steer you in the right direction and answer any initial questions you may have.   RTO consultants used to be a rare find, and those who went down the consultancy road had in fact owned and operated their own RTOs, were all auditors themselves, experienced learning and development specialists, with many many years in vocational education and training, now there seems to be many to choose from, including the scam artists, so our recommendations are buyer beware……………we ask you to choose wisely!  Make contact; see what feels right for you and dig deep about their experience, skills and background.

Whilst the above list of fees and charges can seem a little overwhelming, the benefits of becoming an RTO can far outweigh the costs, but we understand why you may be hesitant to take this step. Contact our expert team today to find out more about how we can help you register your RTO – you can reach us on 1300 933 037 or visit our website now.


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