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Costs to start an RTO Archives - Impact Workforce Training Group

Apr 16
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Start Up Costs To Become An RTO

By | Become an RTO, Fees to start an RTO, Register an RTO, RTO Info | No Comments

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.

Apr 09
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RTO Compliance Risks

By | Assessment validation, RTO assessments, RTO Compliance | No Comments

RTO Audits - RTO consultants are fully qualified auditorsRTO Compliance Risks

Based on ASQA figures, the majority of non-compliance issues are related to the practice of assessment and assessment instruments/tools. After undergoing many audits for RTOs nationally  we have also found the same trend. This is a shocking representation of our industry, especially as this is part of an RTO’s core product.

We have worked with hundreds of RTOs and I believe that when it comes to problems with assessment tools, the key issues generally relate to these areas.

  1. Purchase off the shelf resources 

When RTOs purchase assessment tools, they do so believing the assessment tools are audit ready. Unfortunately, this is most often not the case. We find serious compliance issues with the majority of tools that are on the market today, most are deficient and require serious modifications and amendments, as well contextualisation to meet the RTOs learner cohort, in order to pass audit.

Purchasing assessment tools off the shelf is a risky business unless the RTO uses due diligence, with a process in place to review, amend and validate the instrument.

  1. Poor understanding by Assessors

Most people would consider, those trainers and assessors who hold a current Certificate IV in Training and Assessment, know all there is to know about assessment, unfortunately this is not the case.

Working with or writing assessment tools is not an easy process. It’s a skill that requires in depth knowledge of industry, rules of evidence, principles of assessment, the context and application of assessment, the specific training package, resource development processes, the learner cohort, target market etc etc. So throwing an assessor into the assessment process without thorough screening, involvement in the assessment tool and review of its content is not conducive to effective due diligence by an RTO.

  1. Lack of Moderation

During the assessment process it is crucial to conduct moderation. Feedback, from students, trainers and assessors on their thoughts on the tool should be considered on a constant basis.  This will allow for modification and amendment during the process.

  1. Lack of Validation

Whilst most RTOs, by now, have met their 50%  and over, validation quota. We are still finding that the validation of assessment instruments has not been actioned and evidenced sufficiently by RTOs. We are all extremely time poor and the requirement to validate assessment instruments is a very lengthy process, but: maintaining a comprehensive validation process (both internal and external) will diminish risk, improve outcomes, assist with continuous improvement and maintain quality assurance.

Happy assessing!