Establishing a Registered Training Organisation (RTO) can be a rewarding venture. You’re providing the training that will shape Australia’s future workforce! However, it can also be a challenging undertaking, with various steps that need to be followed and regulations to be met. That’s why we’ve put together this guide to help you understand how to start your own RTO.
In this article, we explore:
- What an RTO is
- Requirements for starting your own registered training organisation
- First steps for becoming an RTO
- The RTO registration process
- Costs involved and potential revenue streams
- Alternatives to starting your own RTO that you may want to consider
- Answers to frequently asked questions
What is an RTO?
A Registered Training Organisation (RTO) is an accredited provider of Vocational Education and Training (VET) in Australia. RTOs deliver nationally recognised qualifications that focus on practical, work-ready skills to meet industry needs.
As an RTO, you’ll provide skill-based training and competency-based assessments, often in partnership with businesses and industries that require tailored workforce development.
To operate as an RTO, you must comply with strict regulatory standards set out by the Department of Employment and Workplace Relations (DWER) and enforced by the Australian Skills Quality Authority (ASQA) and the relevant state regulator. These standards ensure consistent and high-quality training and assessment services.
How to Start an RTO Quiz – Free Interactive Test
Resourcing Requirements for Setting Up an RTO
When researching how to start your own RTO, you’ve likely come across ASQA’s list of requirements. These regularly updated guidelines are extensive and can be confusing. To simplify the process, we’ve provided a simple breakdown of the basic resources you need for your RTO setup. However, we still suggest downloading and checking ASQA’s Guide to Initial RTO Registration for any updates.
- Trainers and Assessors. Ensure you have sufficient human resources to deliver and evaluate training. You’ll need to submit a breakdown of your staff along with their contracts, resumes and qualifications.
- Educational and Student Support Services. RTOs must identify the basic requirements that learners will need to complete each course. This could include factors like language, literacy, numeracy, and physical capabilities. These form part of the pre-training assessments that RTOs are required to conduct. You’ll also need to outline clear strategies to support students who may have gaps in these areas, ensuring equitable access to training and assessment.
- Learning Resources. You’ll need to provide all training materials that students will use for at least three training packages. These training and assessment resources could include, but aren’t limited to, printouts, workbooks, presentations, videos, online courses and lesson plans.
- Facilities for Training. If your RTO will deliver in-person training, you will need to provide ASQA with evidence that you have the space available for classroom training. This could include photographs of the building and classrooms, floor plans and lease agreements. If you are delivering digital training, you’ll need to provide the contract for your learning management system (LMS) and the other software solutions you intend to use.
- Equipment for Training. You must demonstrate that your RTO has access to the equipment required to deliver and assess the practical components of each training package. This includes industry-relevant tools and machinery that reflect real or simulated workplace conditions. For example, a construction course may require access to power tools and safety gear, while an aged care course may need hospital beds and patient lifting equipment.
- Assessment Systems. Whether you’re planning formative or summative assessments, you need to prove that you have the tools to evaluate learning effectively. This could include digital solutions like Cloud Assess or physical assessment tools like observation checklists and written test materials aligned with the training package requirements.
- AVETMISS-Compliant Student Management System (SMS). You will need access to key SMS features like Unique Student Identifier (USI) validation, certificate issuance and revocation, and, most importantly, AVETMISS-compliant reporting. A compliant student management system not only helps manage student data efficiently but also ensures your RTO meets national reporting obligations set by ASQA.
What is essential to know as you set up an RTO is this: When you submit an application to ASQA, you must be ready to start enroling students and training them immediately. You can’t start the registration process without meeting these requirements—if you do, your application will almost certainly be rejected.
How to Start an RTO Business: First Steps
Any RTO startup needs to be well prepared for the industry they’re about to enter. To become an RTO in Australia, you need to focus on more than just delivering training. It’s about supporting current and future skill requirements for relevant industries across Australia. This takes careful planning and research.
1. Research Your Market
Delve into both the structure and history of the VET sector, and the specific needs that industries across Australia face. Understanding national skill shortages and emerging industry needs will help you identify where your RTO can make the most impact. Your market research should also include analysing the demand for specific qualifications, reviewing local competitors, and identifying potential learner demographics.
2. Research Common Problems
If you’re going to set up an RTO, having a detailed understanding of the common problems that RTO managers face will help you avoid them. This step will also provide insight into the latest VET trends, including the going paperless movement and tips for improving learner experience.
3. Understand Regulatory Requirements
As a VET provider, it’s essential to understand and comply with the regulatory frameworks that govern RTOs. These include the Standards for RTOs 2025 and the National Vocational Education and Training Regulator Act 2011.
Staying current with updates from regulators like ASQA will help keep your organisation compliant and audit-ready. Tools like Cloud Assess also make maintaining RTO compliance easier by helping you manage tasks efficiently and streamline your operations.
Top Tip: There are plenty of articles out there to help you standardise compliance. For example, we’ve put together these guidelines for conducting compliant and effective assessments. This will help you maintain compliance, boost student engagement, and offer learners the support they need.
4. Develop Your Business Plan
A solid business plan is the backbone of your RTO. This should outline your strategic direction, RTO-compliant market positioning, growth plans, financial projections and risk management strategies. The Australian government offers a free Business Plan template to get you started.
5. Design Training and Assessment Strategies
It’s not enough to just decide on subjects and qualifications that you’ll offer. A detailed training and assessment strategy (TAS) is an ASQA requirement. It needs to cover your course structure, delivery methods, training and assessment resources, facilities and the assessment methods you’ll use.
Not Sure Where To Start With Your Training & Assessment Strategy?
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RTO Registration Process: A Step-by-Step Guide
1. Prepare Your Documentation
Download and complete the appropriate initial registration application forms. ASQA provides three different forms for RTOs that want to cater to domestic students, international learners, and a mix of both. Some applications will require multiple form submissions.
Full details of the registration form requirements can be found on ASQA’s website.
2. Compile Evidence of Compliance
Once you’ve paid the application fee, you’ll have 90 days to submit your evidence of compliance to ASQA. This should include:
- Chief Executive Officer (CEO) Statutory Declaration: A standard form that can be downloaded from ASQA.
- Fit and Proper Person Declaration Forms: These need to be submitted by the CEO, executive officers, high managerial staff, and any other person who would be involved in the management of your RTO.
Note: Details of the requirements for a fit and proper person can be found in Schedule 1 of the Compliance Standards for RTOs.
- Financial Viability Risk Assessment Report: Demonstrates an RTO applicant’s financial sustainability. Various financial documents and statements will need to be supplied throughout the process, including forecasts for revenue and expenses.
- Comprehensive Additional Evidence: The types of evidence required will vary according to the type of application being submitted. However, common evidence requirements include policies, procedures and strategies for recognition of prior learning, identifying and supporting individual learning needs, and TAS submissions for each training program.
Top Tip: Reviewing these common RTO compliance concerns before submitting your evidence will help you ensure all aspects of your training are covered.
3. Upload Documentation
Create an account for the ASQAnet portal and upload relevant forms and documentation for your application.
Note: You won’t be able to resubmit the application form, so make sure your responses are complete and accurate.
4. Pay the Lodgement Fee and Submit Evidence
Once you’ve submitted the application, you’ll get an invoice for a non-refundable lodgement fee of $600 AUD and a link to submit supporting evidence.
5. Await Initial Assessment
It can take up to 30 days for ASQA to review your application and conduct pre-assessment checks to ensure it’s valid and complete. If anything is missing or needs clarification, you will be given 5 calendar days to provide further information or evidence.
6. Pay the Assessment Fee
Once ASQA has confirmed that your application is complete, you’ll receive an assessment fee invoice for $8000 AUD. This will need to be paid before your RTO can be assessed.
7. Meet Your Assessor
As soon as your assessment fee has been paid in full, you’ll be assigned an assessor to review your documentation and evidence. This will be your main point of contact. They’ll explain the process and book key dates for conducting interviews and site visits. You’ll need to ensure key stakeholders are available and able to participate in the requested interviews on the dates provided.
Top Tip: Your LMS may include an RTO calendar feature to help you keep track of these dates! This will ensure you stay on top of meetings, site visits and deadlines.
8. Assessment Interviews
Your assessor will conduct interviews with all applicants listed on your application, either in person or online. This is part of an overall risk assessment to ensure your RTO is able to deliver high-quality training in line with the VET Quality Framework. All interviewees will need to indicate that they understand the latest Standards for RTOs.
9. Site Visits
It may not always be necessary for ASQA to conduct a site visit, especially for RTOs that intend to conduct online training. However, where necessary, the assessor will arrange a site visit either in person or over a video conference.
10. Opportunity to Address Concerns
If your assessor identifies any risks during the interviews and site visits, you will be given an opportunity to address them within a specified timeframe. Evidence of actions that have been taken should be submitted before the closing meeting with your assessor.
Note: While actions can be taken to address some areas of risk, significant or complex areas of non-compliance are unlikely to be addressed in this timeframe.
11. Final Decision
Your assessor will organise a closing meeting to discuss the assessment outcomes and their recommendations. These will then be submitted to the decision maker, who will decide whether your application should be granted. A copy of the assessment report will be made available to you as well.
You may receive an approved application for some or all training products, which may have specific conditions that need to be applied. If this is the case, you’ll receive a registration certificate, a letter explaining obligations and details of any special conditions that may apply.
New RTOs are approved for an initial 2-year period, giving ASQA an opportunity to conduct further assessments and RTO audits to ensure continued compliance.
If your application is not approved, details will be provided within the assessment report. You will have an opportunity to request a review of the decision.
12. Prepare For Regular Audits
Maintaining compliance is an ongoing process, not a one-time event. ASQA conducts regular audits to ensure that RTOs maintain compliance with the VET Quality Framework. Maintaining certification, documentation and training records will help you stay prepared for these audits.
Understand Your Annual Commitments!
Our free checklist will keep you prepared for audits and compliance requirements.How Much Does It Cost to Start an RTO?
The costs involved in setting up and maintaining an RTO aren’t one-size-fits-all. While some fees are standardised, others are dependent on the number of qualifications you offer and the processes you have in place. Some costs to consider include:
- Initial Lodgement Fee of $600 AUD when submitting an RTO application. This amount is non-refundable.
- Initial Assessment Fee of $8000 AUD once pre-assessment checks have been completed. This amount is refundable in part if the application doesn’t proceed to full assessment.
- Annual Registration Charge calculated based on the number of qualifications you offer and the number of unique student enrolments.
- Additional ASQA fees and charges may apply when changing the scope of training or applying for course accreditation.
- Administrative costs may include maintaining and upgrading training resources, investing in continuous professional development for your staff, and conducting regular compliance audits.
- RTO Software costs need to be included in any RTO’s budget. These could include your LMS, SMS, assessment software, employee management software and HR systems. There are also flexible all-in-one solutions like Cloud Assess that can help you meet multiple needs.
Potential Revenue Streams
With a better understanding of how much it costs to set up an RTO, let’s look at where your main sources of income will come from. While student fees are likely to make up a substantial portion of your ongoing revenue, additional income can come from:
- Government Funding Programs: Different states and territories in Australia offer unique funding schemes. Understanding the available funding programs that you can participate in can significantly enhance your RTO’s revenue streams and contribute to its sustainability.
- Corporate Partnerships: Partnering with local businesses can be a valuable revenue stream for RTOs. Many organisations collaborate with RTOs to deliver customised training for their workforce. RTOs also work with local partners to equip students with the skills needed for future roles through work-based learning opportunities like apprenticeships and traineeships.. These partnerships not only provide steady income but also help businesses build a reliable pipeline of job-ready talent.
- Consulting Services: In addition to delivering training, many RTOs offer consulting services to businesses. This can include advising on strategic workforce planning, identifying skill gaps, and recommending targeted training solutions to improve staff performance and productivity. These training and assessment services position RTOs as valuable partners in long-term business growth.
- Online Courses and International Students: With the right infrastructure, you can offer eLearning courses to students all over the world, dramatically expanding your RTO’s market reach. Just make sure that you are complying with CRICOS requirements.
- Short Courses and Workshops: In addition to standard qualifications, your RTO could offer short courses or workshops to individuals and businesses, supporting specific skill development.
- Sale of Training Materials and Resources: If your RTO develops its own training materials or resources, these could potentially be sold to other organisations or learners. Some LMS platforms will include eCommerce features to streamline this process.
Remember, your primary goal as an RTO is to provide quality training and assessment that meets the needs of your learners and the industry. While exploring these revenue streams, it’s crucial to maintain this focus to ensure your RTO’s long-term success.
Alternatives to Starting an RTO
While starting an RTO may be an attractive option for some, it’s important to consider alternative pathways that can still provide opportunities in the vocational education and training sector. Each option comes with its own considerations, such as contractual agreements, legal obligations, and alignment with the VET regulatory framework.
Consulting with a Suitably Qualified Experienced Person or relevant organisations can provide valuable insights and guidance on the best option for your specific goals and circumstances.
1. Partnerships with Existing RTOs
Consider forming strategic partnerships with established registered training organisations to share training resources, facilities, or delivery expertise. These collaborations can help you expand your offerings while benefiting from an experienced provider’s infrastructure and reputation.
2. Subcontracting
Subcontracting allows you to deliver training and assessment on behalf of a registered RTO. This pathway lets you operate under their registration, focusing on delivery while they handle the administrative and compliance responsibilities. A formal written agreement is required, and the lead RTO remains accountable for ensuring quality training and maintaining compliance.
3. Course Accreditation
If you have expertise in a specific field, you could develop a nationally recognised course that addresses specific training needs. However, you would need to partner with a registered training organisation that can deliver accredited courses and issue qualifications.
4. Consultancy and Training Services
You could offer customised training solutions, assessment services, workforce development programs, or consultancy services to businesses and organisations without the need for RTO registration.
5. Employment in Existing RTOs
If you are passionate about high-quality education and training in the VET sector, you can also explore employment opportunities within existing RTOs. This allows you to contribute to the sector while working in a supportive and established organisation.
FAQs About Becoming a Registered Training Organisation (RTO)
How Long Does RTO Registration Take?
The initial registration process takes between 4 to 6 months. This includes application submissions, pre-assessment checks, assessment interviews and site visits. Additional time may be required based on the complexity and completeness of your application, and if any concerns need to be addressed during the process. Thorough preparation and prompt responses to ASQA requests can ensure the registration proceeds as quickly as possible.
How To Become An RTO Trainer?
To become a trainer at a Registered Training Organisation, you need to hold relevant certificates. These are outlined in DEWR’s Credential Policy, and include the TAE40122 Certificate IV in Training and Assessment (or its successor). You’ll also need vocational competencies and current industry skills relevant to the subject area you intend to teach.
Do You Need to Be an RTO to Deliver Training?
No. However, only RTOs can deliver nationally recognised training and issue accredited qualifications. If you’re not an RTO, you can only deliver non-accredited training or subcontract under a registered provider.
How Can I List My Training Organisation on an RTO Register?
To list your organisation on the national RTO register, you must apply to the Australian Skills Quality Authority (ASQA), meet all requirements under the Standards for RTOs 2025, and successfully complete the initial registration process. Approved providers are then added to the National Register at training.gov.au.
