Standards Explanatory Statement

[EXPLANATORY STATEMENT]{.underline}

Issued by the authority of Minister Giles, Minister for Skills and Training

National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025

AUTHORITY

The National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025 (the Instrument) is made under subsection 185(1) of the National Vocational Education and Training Regulator Act 2011 (the Act).

Subsection 185(1) of the Act empowers the Minister for Skills and Training, by legislative instrument (with the agreement of the Ministerial Council), to make standards for NVR registered training organisations. Section 22(1) of the Act provides that an NVR registered training organisation must comply with the Standards for NVR Registered Training Organisations.

Section 191 of the Act specifies that the Ministerial Council is to give its agreement by resolution of the Ministerial Council and passed in accordance with the procedures determined by the Ministerial Council. Currently the Ministerial Council is constituted by the Skills and Workforce Ministerial Council.

PARLIAMENTARY SCRUTINY

Exemption from disallowance:

Instruments made under subsection 185(1) of the Act are prescribed by regulation as exempt from disallowance and sunsetting for the purposes of paragraph 44(2)(b) and 54(2)(b) of the Legislation Act 2003 (see Item 23A, paragraph (d) of the table in section 10 of the Legislation (Exemptions and Other Matters) Regulation 2015, and Item 44A, paragraph (d) of the table in section 12 of the Legislation (Exemptions and Other Matters) Regulation 2015)).

This is consistent with subsection 44(1) of the Legislation Act 2003 which provides that an instrument will not be subject to disallowance where the instrument facilitates the establishment or operation of an intergovernmental body or scheme involving the Commonwealth and one or more States or Territories; and authorises the instrument to be made by the body or for the purposes of the body or scheme.

It is appropriate for the Instrument to be exempt from sunsetting and disallowance because of the nature of the intergovernmental scheme (known as the National VET Scheme) that the Instrument and the Act facilitates. The National VET scheme is underpinned by referrals of constitutional power from states and territories (with the exception of Western Australia and Victoria) to allow for the Commonwealth to regulate the VET sector. The Act's commencement followed the then Council of Australian Governments' decision to establish a new approach to national regulation for the VET sector. The Act was enacted consistent with the Intergovernmental Agreement for Regulatory Reform in VET, thereby facilitating the establishment and operation of an intergovernmental scheme involving the Commonwealth and referring States for the purposes of VET regulation.

Legislative instruments made under the Act, including the Instrument, are governed by the consultation requirements at section 191 of the Act. These requirements mean that, for the purposes of making various legislative instruments under the Act, including the Instrument, the Commonwealth must obtain the agreement of the Ministerial Council by resolution of the Council passed in accordance with the procedures determined by the Council under section 191 of the Act.

To comply with these requirements, the Department obtained the agreement of the Ministerial Council on 24 May 2024 to the final policy drafts of the revised Standards for NVR Registered Training Organisations, and consulted with states and territories on the Instrument through the Skills Senior Officials' Network (SSON), which is comprised of senior officials from each state and territory government department responsible for VET. Feedback from the SSON VET Reforms Working Group was incorporated into the revised instrument prior to the Ministerial Council, (currently the Skills and Workforce Ministerial Council), agreeing to the Instrument. The Western Australian Training Accreditation Council (TAC) was also consulted, recognising that while TAC regulated Western Australian RTOs are not covered by the Act, TAC plans to adopt the Instrument to regulate these RTOs consistent with the agreement by States, Territories and the Commonwealth in the Intergovernmental Agreement for Regulatory Reform in VET to take a nationally-consistent approach to regulating the VET sector.

On this basis, any potential disallowance of legislative instruments made under subsection 185(1) of the Act may discourage state and territory support for the VET regulatory framework, given that substantial and robust consultation is required to be undertaken with states and territories. A disallowance might be perceived as the Commonwealth Parliament unilaterally disallowing instruments that facilitate the National VET Scheme and are part of a multilateral outcome.

Further justification for this disallowance exemption is provided under the Explanatory Memorandum for the Legislation (Exemptions and Other Matters) Amendment (Sunsetting and Disallowance Exemptions) Regulation 2016 (refer to commentary for Item 3).

**

PURPOSE AND OPERATION

Skills Ministers' Statement

High quality vocational education and training (VET) is vital to Australia's future, producing the knowledge and skills to position Australia as an economically prosperous, socially equitable and environmentally sustainable nation.

All Australian governments have agreed to build a high-performing and world-class VET sector with TAFE at the heart, a system in which training is accessible to Australians from all walks of life, supporting students to succeed and all Australians to train, upskill and retrain.

Public providers form a key pillar of a diverse VET sector, one in which a wide variety of high-quality providers are needed to deliver training across different contexts. This includes a diverse range of private providers, community and adult education providers, enterprise RTOs and VET delivered in secondary schools. RTOs deliver to learners of all ages in wide ranging contexts, meeting skills needs across the entire economy and this diversity is a strength of the VET sector.

The Standards for RTOs have been revised to strengthen the focus on quality outcomes for learners and employers, provide greater clarity for RTOs and regulators, allow for more flexibility and innovation in training delivery and support. The changes are designed to better reflect the diversity of the VET sector and ensure the Standards are fit-for-purpose across different RTO settings and delivery contexts. This will help to embed quality aspirations and ensure the Standards clearly articulate characteristics required of RTOs to foster a shared understanding of high-quality delivery for all users of the VET system.

Skills Ministers agreed the following wording as a preamble to the revised Standards for RTOs at the 20 September 2024 meeting of the Skills and Workforce Ministerial Council. The preamble has been included in this Explanatory Statement to assist with interpreting this instrument. **

General Purpose and Operation

The National VET Regulator must consider, under subsection 17(2) of the Act, whether an organisation applying to become an NVR registered training organisations (NVR RTO) is complying or will comply with (amongst other things) the Standards for NVR Registered Training Organisations (part of the VET Quality Framework, defined in section 3 of the Act): s 17(2)(a) of the Act. Compliance is also an ongoing condition of registration as an NVR RTO: see s 21 of the Act.

The Instrument applies to NVR RTOs, who are defined in section 3 of the Act as a training organisation registered by the National VET Regulator (i.e. the Australian Skills Quality Authority (ASQA)) as a registered training organisation under the Act. Where RTOs are regulated by state-based regulators (i.e. TAC and VRQA), as is the case for some RTOs in Victoria and Western Australia, those RTOs' regulatory obligations are set out in state legislation. Victoria and Western Australia may, for the RTOs that TAC and VRQA are responsible for regulating, adopt and impose the same regulatory requirements outlined in the Instrument by amending their own primary legislation and legislative instruments to reflect or incorporate these regulatory requirements. This is consistent with the agreement by States, Territories and the Commonwealth in the Intergovernmental Agreement for Regulatory Reform in VET to take a nationally-consistent approach to regulating the VET sector.

For the purposes of the Act, the Standards for NVR Registered Training Organisations (the revised Standards) comprise of two separate instruments:

1. The Outcome Standards -- which are set out in this Instrument and describe the outcomes NVR RTOs must achieve to deliver quality VET and incorporates the Credential Policy. This policy sets out the credentials required for people delivering training and assessment and for people undertaking validation of assessment practices and tools and is listed on the National Register. The operation and a detailed explanation of each provision of the Outcome Standards is set out below.

2. The Compliance Standards -- which comprise of administrative, binary or process-oriented requirements which NVR RTOs must comply with, and which are set out in a separate instrument -- see: the National Vocational Education and Training Regulator (Compliance Standards for NVR Registered Training Organisations and Fit and Proper Person Requirements) Instrument 2025.

The requirements in the Compliance Standards are essential to upholding the integrity of the VET sector by ensuring NVR RTOs are complying with the fundamental administrative requirements central to their operation as a registered training organisation. The Compliance Standards also specify Fit and Proper Person Requirements at Schedule 1 (for the purposes of subsection 186(1) of the Act) and the Nationally Recognised Training Logo Conditions of Use Policy (NRT Logo Conditions of Use policy) at Schedule 2, which specifies the circumstances in which NVR RTOs may use the Nationally Recognised Training Logo.

The Compliance Standards (at Schedule 3) repeal the Standards for Registered Training Organisation (RTOs) 2015 (the 2015 Standards).

The intent of the revised Standards is to replace the 2015 Standards which are complex, difficult to navigate, do not reflect contemporary practice, and tend to drive a focus on prescriptive compliance at the expense of good organisational practices designed to deliver quality outcomes. Both instruments are of equal importance, and NVR RTOs must comply with this Instrument and the Compliance Standards as part of their obligations under subsection 22(1) of the Act.

ASQA will consider whether an applicant seeking registration as an NVR RTO is able to demonstrate that it will comply with these instruments for the purposes of registration as an NVR RTO under section 17 of the Act. Under section 35 of the Act, ASQA will also conduct compliance audits at various intervals throughout the NVR RTO's registration period to assess whether the NVR RTO continues to comply with the Instrument and Compliance Standards.

The development of the Outcome Standards in this instrument has been based on a program of extensive consultation, piloting and refinement to ensure they are fit-for-purpose and meet the needs of the VET sector. The Outcome Standards describe the outcomes NVR RTOs must achieve to deliver quality VET by clarifying and setting clear expectations for NVR RTOs (including their third-parties), whilst recognising that the VET sector is diverse and the way each NVR RTO operates, and delivers on particular outcomes, will differ depending on their context and student cohort. Public providers form a key pillar of a diverse VET sector, one in which a wide variety of high-quality providers are needed to deliver training across different contexts.

Central to achieving a high-performing VET sector is the move to an outcomes-focused approach detailed in the Instrument. The policy rationale for using 'effectively' and similar adverbs throughout the Instrument is to give effect to a less binary approach which focuses on lifting quality outcomes within the VET sector. The intent is to require NVR RTOs to do more than meet binary and prescriptive \"tick and flick\" obligations, and instead demonstrate genuine commitment and capability to the provision of quality VET. This will assist and incentivise NVR RTOs, especially higher performing organisations, to demonstrate they are performing beyond the bare legislative obligations set out in the Compliance Standards.

The intent of the Outcome Standards is therefore to shift the focus of the VET sector from baseline compliance to continuous improvement in VET quality and integrity.

Schedule 1 of this instrument introduces Outcome Standards in four key Quality Areas -- training and assessment, VET student support, workforce, and governance. The overarching outcome to be achieved by NVR RTOs in each Quality Area is clearly articulated and is supported by focus areas which detail specific expectations.

Part 1: Training and Assessment

This Part of the instrument requires NVR RTOs to provide quality training and assessment that engages VET students and enables them to attain nationally recognised, industry-relevant competencies. This part of the instrument contains the following Divisions:

Division 1 - Training

• This Division introduces requirements to ensure that training is well-structured and engaging, recognises the diversity of students' needs and learning styles, and enables VET students to build practical skills and competencies. Training is required to be structured and paced to support VET students to progress, providing sufficient time for instruction, practice, feedback and assessment.

• This Division also introduces requirements to engage with industry, employer and community representatives to ensure training reflects workplace requirements and meets the expectations of industry.

Division 2 -- Assessment

• This Division introduces requirements to ensure VET students can demonstrate competency in a consistent, reliable and verifiable way, and that NVR RTOs have robust and regularly validated assessment systems in place to enable assessment in line with the principles of assessment and rules of evidence.

• This Division also introduces requirements that assessors make individual assessment judgements based on the principles of assessment (fairness, flexibility, validity and reliability), and the rules of evidence (validity, sufficiency, authenticity and currency).

Division 3 - Recognition of prior learning and credit transfer

• This Division introduces requirements to ensure recognition of prior learning is supported for VET students with genuine prior skills, knowledge and competencies.

• This Division also introduces requirements to ensure credit transfer is supported for VET students who have previously completed an equivalent training product.

• These requirements support a key pillar of the national VET system, which is that nationally endorsed training products are recognised and portable regardless of where they were issued.

• NVR RTOs are required to act fairly, consistently, honestly and transparently when making decisions about recognition of prior learning, and credit transfer, and document all decisions.

Division 4 - Facilities, resources and equipment

• This Division introduces requirements to ensure facilities, resources and equipment are fit-for-purpose and safe to use, and that resourcing is sufficient and appropriate to ensure VET students can effectively complete their training and assessment.

Part 2: VET Student Support

This Part of the instrument requires NVR RTOs to provide supports to VET students to enable them to succeed in their training, ensuring VET students are treated fairly and are properly informed, protected, and supported. This part of the instrument contains the following Divisions:

Division 1 -- Information

• This Division introduces requirements to ensure information provided to VET students, including information provided by a third-party, is up-to-date, accurate, clear and easy to understand, and that VET students receive relevant and timely information that enables them to make informed decisions, including about whether a training product is right for them, prior to enrolment.

Division 2 - Training support

• This Division introduces requirements that recognise that people learn in different ways and may need varying levels and types of support to enable them to successfully participate in training.

• This Division also introduces requirements for NVR RTOs to foster a culture where VET students from all backgrounds and of all abilities are encouraged and supported to participate in training and assessment, including through reasonable adjustments.

Division 3 - Diversity and inclusion

• This Division introduces requirements to ensure diversity and inclusion are supported with NVR RTOs expected to create a safe and inclusive learning environment free from racism, discrimination or any other form of harassment.

• Further, NVR RTOs need to actively consider how their recruitment policies, training environment, activities and materials, assessment processes and wellbeing support services are accessible and inclusive.

• This Division introduces requirements to ensure NVR RTOs take steps towards fostering a culturally safe environment, including creating an environment that is safe for First Nations people where there is no challenge or denial of their identity and experience.

• This Division does not alter, impair or detract from the operation of sections 37 and 38 of the Sex Discrimination Act 1984.

Division 4 - Student wellbeing

• This Division introduces requirements to ensure NVR RTOs (including their third-parties) have appropriate strategies in place to support VET student wellbeing, enhance VET student engagement and satisfaction, support training progression and completion and create a safe learning environment.

Division 5 - Feedback, complaints and appeals

• This Division introduces requirements for the management of feedback and complaints, to ensure NVR RTOs are open to receiving feedback and complaints and use these to inform continuous improvement.

• This Division also requires NVR RTOs to have a system (supported by policies and procedures) for managing appeals to decisions at no or low cost to the VET student.

Part 3: VET Workforce

This Part of the instrument requires NVR RTOs to ensure VET students are trained, assessed and supported by people who are qualified, skilled and committed to their own professional development. This part of the instrument contains the following Divisions:

Division 1 -- VET workforce management

• This Division introduces requirements to ensure NVR RTOs have people with the right skills, in the right positions, at the right time to deliver quality training and assessment.

Division 2 - Trainer and assessor competencies

• This Division introduces requirements to ensure training and assessment is only delivered by people with relevant credentials as specified in the Credential Policy.

• The Credential Policy is incorporated by reference in Standard 3.2 and Standard 3.3, as outlined above.

• Standard 3.3 requires that all trainers and assessors must have industry competencies, skills and knowledge that are relevant to, and at least to the level of, the training product being delivered and assessed. 'At least to the level of' refers to the level of skills and knowledge required for each training product, rather than equivalence of the AQF level. The Instrument does not specify that trainers and assessors must hold the training product they are delivering or assessing. While this is the most direct way of evidencing the relevant industry competencies, skills and knowledge, this could also be demonstrated through a combination of formal and informal learning and skills and knowledge gained through paid or volunteer work.

• This Division introduces requirements that recognise the importance of trainers and assessors having a real, current and comprehensive understanding of industry practice and understanding how skills and competencies will be applied in practice.

• This Division also introduces requirements around where there is a specific need for the engagement of an expert. The scope of 'experts' is outlined in Standard 3.3, as NVR RTOs must have a system in place for ensuring experts have industry competencies, skills, knowledge and specialised industry or subject matter expertise that is directly relevant to the training product they are delivering. Experts are only authorised to work under the direction of a person who meets the requirements of the Credential Policy.

Part 4: Governance

This Part of the instrument requires NVR RTOs to have effective governance systems, policies and practices that ensure accountability, transparency and integrity, and a commitment to continuous improvement, recognising the importance of this in supporting the quality and integrity of VET delivery. This part of the instrument contains the following Divisions:

Division 1 - Leadership and accountability

• This Division introduces requirements to ensure the organisation, and its governing persons lead with integrity, act diligently and set the benchmark for the NVR RTO, particularly with respect to a culture of integrity. NVR RTOs are expected to have effective systems for defining roles and responsibilities, within the organisation (including those of any third parties engaged) communicating these within the organisation and assigning accountabilities.

Division 2 - Risk management

• This Division introduces requirements to ensure NVR RTOs have a system in place to focus on identifying, managing and reviewing risks to VET students, staff and the NVR RTO. Management of the following risks is specifically called out: financial risks to the organisation, conflicts of interest, and risks to the safety and wellbeing of VET students, particularly those aged under 18.

Division 3 - Continuous improvement

• This Division introduces requirements to ensure NVR RTOs self-assure by testing whether they are meeting the standards and identifying any required adjustments and continuously improving the quality of their services.

The outcomes focused standards and performance indicators for each Quality Area are explained in the 'Explanation of Provisions' section below. The performance indicators set out the requirements an NVR RTO must demonstrate to meet each standard. The National VET Regulator will consider NVR RTO compliance against each standard.

A Policy Guidance document has been developed and publicly released to assist users with the policy interpretation of the provisions in Schedule 1 of the Instrument and is available on the Department of Employment and Workplace Relations website at www.dewr.gov.au/standards-for-rtos. ASQA has developed resources to assist RTOs to prepare for the revised Standards, including Practice Guides. These are available on ASQA's website at www.asqa.gov.au.

REGULATORY IMPACT

The Office of Impact Analysis (OIA) has advised that an Impact Analysis is not required. OIA reference ID: OIA23-05991.

COMMENCEMENT

The Instrument commences on 1 July 2025.

CONSULTATION

The National VET Regulator, Western Australia Training Accreditation Council, and all state and territory governments have been consulted regarding the making of the Instrument. Feedback was considered and incorporated into the Instrument where appropriate.

In addition, over the course of the past four years there has been an extensive program of sector consultation on revisions to the 2015 Standards. Engagement with states and territories, VET regulators, and sector peak bodies was undertaken to strengthen the focus on quality outcomes for learners and employers, provide greater clarity, and allow for more flexibility and innovation in training delivery.

A public consultation process on an earlier draft of the revised Standards was held from November 2022 to January 2023. This included opportunities for the sector to provide written feedback and participate in a range of online and face-to-face forums across all states and territories. Considering feedback received, the draft revised Standards were refined in preparation for piloting.

In late 2023, piloting of the draft revised Standards was undertaken in collaboration with VET regulators. Piloting sought to test the practical application of the revised Standards, ensure they support effective regulation, and ensure that RTO performance against the draft revised Standards is measurable and can be effectively evidenced across different RTO settings.

Following the pilot process refinements were made to the draft revised Standards to ensure the clarity and consistency of language, streamlining of requirements to locate related concepts together, and that the Outcome Standards meet the needs of the sector.

Feedback was also sought from the sector on the draft Credential Policy and Compliance Standards to ensure they are clear, that their purpose is understood, and to identify any concerns with how RTOs might meet requirements. More than 100 stakeholders responded to the survey with feedback informing final wording of the legislative instruments to enact the Outcome Standards, Compliance Standards and Credential Policy prior to the revised Standards taking full regulatory effect.

Feedback and examples from stakeholders also informed drafting of policy guidance which will support clear and consistent understanding of the policy intent underlying the revised Standards, noting the diverse operating contexts of RTOs.

The Commonwealth and state and territory Skills Ministers have had oversight of the development of the revised Standards contained in this instrument. At the Skills and Workforce Ministerial Council (SWMC) meeting in May 2024, Skills Ministers endorsed policy drafts of the revised Standards package comprising of the Outcome Standards, Compliance Standards and Credential Policy. Following minor refinements, and as agreed by Skills Ministers in September 2024, the policy drafts were publicly released to the sector in October 2024.

The Instrument reflects the Outcomes Standards policy guidance released for public consultation in October 2024 with minor wording adjustments in response to stakeholder feedback and minor wording updates where required to give legal effect to the policy intent.

In December 2024, the Commonwealth Minister for Skills and Training wrote to state and territory Skills Ministers seeking their agreement to the Instrument. All Skills Ministers have responded, supporting the Instrument and the Ministerial Council has given its agreement for the purposes of the Instrument, in accordance with section 191 of the Act.

[EXPLANATION OF PROVISIONS]{.underline}

National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025

[Clause 1: Name of legislative instrument]{.underline}

1. This clause provides that the name of the Instrument is the National Vocational Education and Training Regulator (Outcome Standards for NVR Registered Training Organisations) Instrument 2025 (the Instrument).

[Clause 2: Commencement]{.underline}

1. This clause provides that the whole of the Instrument commences on 1 July 2025.

2. Enacting the Instrument early in 2025 will provide certainty to the VET sector and ensure the Instrument is registered and publicly available in advance of its commencement. This will help prepare the sector to transition to the revised requirements set out in the Instrument in time for the 1 July 2025 commencement date.

[Clause 3: Authority]{.underline}

1. This clause provides that the Instrument is made under subsection 185(1) of the Act.

[Clause 4: Definitions]{.underline}

1. This clause sets out the definitions of terms used in the Instrument where they are not otherwise defined in the Act. A note to item 4 provides that a number of expressions used in the Instrument are defined in section 3 of the Act.

2. The definition of 'services' refers to 'training and assessment'. This should be taken to mean training, assessment or both training and assessment, noting the various uses of this term throughout the Instrument as well as the Compliance Standards.

3. 'Industry expert' is not a defined term as the permitted scope of NVR RTO use of industry experts is outlined in Standard 3.3.

[Clause 5: Effect of this instrument]{.underline}

1. This clause explains the legal effect of the Instrument. Subclause 5(1) provides that the purpose of Schedule 1 is to set out Outcome Standards for NVR Registered Training Organisations (NVR RTOs) in accordance with subsection 185(1) of the Act. Subsection 185(1) of the Act provides that the "Minister may, by legislative instrument, make standards for NVR registered training organisations, as agreed by the Ministerial Council."

2. Subclause 5(2) of the Instrument provides that the National VET Regulator (the Regulator) is required to consider whether an applicant is complying, or will comply, with Schedule 1 when deciding an application for registration as an NVR RTO. This is consistent with subsection 17(2) of the Act which requires the Regulator to consider the applicant's compliance with the VET Quality Framework.

3. NVR RTOs must also continue to comply with Schedule 1 as a condition of their ongoing registration under the Act: see subsection 22(1) of the Act.

[Clause 6: Schedule]{.underline}

1. This clause provides that each instrument specified in a Schedule to the Instrument is amended or repealed and any other item in a Schedule to the Instrument has effect according to the terms of the Schedule. The Instrument consists of one Schedule which sets out items comprising the Outcome Standards for NVR registered training organisations.

Schedule 1 -- Outcome Standards

[Overview of the Outcome Standards]{.underline}

1. An overview of the Instrument and the four 'Quality Areas' the Instrument is designed to promote amongst NVR RTOs is provided in a text box at the beginning of Schedule 1. For each quality area there is a corresponding 'Outcome'. These Outcomes (1 to 4) are set out in the text box.

2. These Outcomes impose requirements relating to service delivery that NVR RTOs must meet when registered under the Act. Rather than imposing strictly prescriptive requirements, these Outcomes represent areas in which the Regulator can assess NVR RTOs to identify any areas in which they can improve. This aligns with the Commonwealth's commitment to ensuring the continuous and ongoing improvement of the VET sector.

3. Consistent with the objective of supporting continuous improvement, the Instrument specifies an 'Outcome Standard' and 'performance indicators' for each Standard specified in Schedule 1. The Outcome Standard specifies the outcome or result that NVR RTOs should be demonstrating -- e.g. the delivery of engaging and well-structured training for VET students. The performance indicators specify the actions that NVR RTOs must demonstrate to be assessed by the Regulator as meeting the corresponding Outcome Standard.

4. For example, to demonstrate the delivery of engaging and well-structured training, a corresponding performance indicator requires the NVR RTO to demonstrate that training is structured and paced to support VET students to progress.

[Part 1 -- Training and assessment (Quality Area 1)]{.underline}

1. This Part gives effect to the first Quality Area and associated Outcome: Quality training and assessment engages VET students and enables them to attain nationally recognised, industry relevant competencies. A text box below Part 1 refers to this Outcome.

[Division 1 -- Training]{.underline}

1. This Division gives effect to the first component of Quality Area 1 -- i.e. ensuring NVR RTOs provide quality training.

[Standard 1.1]{.underline}

1. The purpose of Standard 1.1 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Training is engaging and well-structured and enables VET students to attain skills and knowledge consistent with the training product.

1. Each performance indicator at Standard 1.1(2) specifies an element that is considered critical to the achievement of the Outcome Standard at Standard 1.1(1). The listed performance indicators are intended to ensure that NVR RTOs deliver quality training that engages VET students and supports their understanding.

2. Appropriate design and mode of delivery of training is critical to ensure VET students are engaged, recognising the diversity of VET student needs and learning styles, and enables VET students to build practical skills and competencies. Designing well-structured and engaging training is key to supporting VET students to progress through the training product. This includes the requirement at Standard 1.1(2)(c) that training be structured in such a way that sufficient time is afforded for VET students to receive instruction, and undertake practice, feedback and assessment. In this context, the term 'sufficient time' is intended to require NVR RTOs to consider a range of relevant factors including the VET student cohort; the mode of delivery and the resources, technology platforms and facilities available; the expectations of industry, employers and/or the community; and the breadth and complexity of the skills and knowledge to be acquired.

[Standard 1.2]{.underline}

1. The purpose of Standard 1.2 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Engagement with industry, employer and community representatives effectively informs the industry relevance of training offered by the NVR registered training organisation.

1. The corresponding performance indicators at Standard 1.2(2) require NVR RTOs to engage with industry, employer and community representatives to seek advice and feedback concerning VET training and assessment practices. These performance indicators are designed to ensure that NVR RTOs engage with important stakeholders who are responsible for employing or training VET graduates. Advice and feedback from these stakeholders will help NVR RTOs remain attuned to industry/employer needs and inform updates to their training so that it reflects current industry practice.

2. Further, it is intended that this Standard will ensure NVR RTOs have mechanisms for ongoing industry engagement, thereby ensuring training remains relevant, fit-for-purpose and reflective of current industry practice. This will help to:

3. ensure training aligns with current industry need, practice and expectations;

4. enable VET graduates to enter the workplace 'job ready', with the skills and knowledge required to succeed;

5. maximise VET students' opportunities for employment, advancement or further education; and

6. instil confidence (from employers, industry and VET students) in the integrity, currency and value of the qualifications issued by NVR RTOs.

[Division 2 -- Assessment]{.underline}

1. This Division gives effect to the second component of Quality Area 1 -- i.e. ensuring NVR RTOs undertake quality, evidence-based assessment.

[Standard 1.3]{.underline}

1. The purpose of Standard 1.3 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

The assessment system is fit-for-purpose and consistent with the training product.

1. This standard requires NVR RTOs to have appropriate assessment systems (consistent with the requirements of the training product) to enable accurate and robust assessment judgement of VET student competency.

2. The corresponding performance indicators at Standard 1.3(2) require NVR RTOs to demonstrate that its assessment systems adequately assess the requirements of the relevant training product, that assessment tools are reviewed before use to ensure they are consistent with the 'rules of evidence' (see Standard1.4(2)(b)) and that the outcomes of any such review are implemented.

3. The terms 'assessment system' and 'assessment judgement' are defined in clause 4 of the Instrument. They are intended to cover the practical means and methods by which NVR RTOs conduct assessments of VET students in accordance with the relevant training product. Standard 1.3(2) is intended to ensure that these means and methods of assessment maintain the integrity of the VET system by requiring NVR RTOs to consistently undertake assessments that are evidence-based, fair, and adequately correspond to the requirements of the training product.

[Standard 1.4]{.underline}

1. The purpose of Standard 1.4 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

The assessment system ensures assessment is conducted in a way that is fair and appropriate and enables accurate assessment judgement of VET student competency.

1. The intent of this standard is to require NVR RTOs to ensure VET students' skills and knowledge are assessed in a way that is fair and appropriate, and assessment outcomes are reliable. Instituting these robust assessment systems are critical to upholding and defending the integrity of an NVR RTO's assessment decisions, thereby facilitating the integrity of VET.

2. The performance indicators at Standard 1.4(2)(a) require NVR RTOs to have assessment systems in place which conform with the principles of: fairness, flexibility, validity, and reliability. These principles are central principles that NVR RTOs must demonstrate when designing and using their assessment systems. The principles require the assessment system to accommodate the individual needs of the VET student (i.e. to make reasonable adjustments and ensure the assessment is appropriate to the individual VET student), but also require that the assessment system include practical components and produce reliable results.

3. The performance indicators at Standard 1.4(2)(b) set out four general rules of evidence that assessors must have regard to when making individual assessment judgments. These rules require that assessors -- when determining whether competency has been achieved by a VET student -- can justify their assessments as: valid, sufficient, authentic and current.

4. The purpose of these obligations is to ensure the integrity and consistency of the assessment process by imposing a set of requirements that NVR RTOs must ensure assessors are meeting when making assessment judgements.

[Standard 1.5]{.underline}

1. The purpose of Standard 1.5 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Assessment system is quality assured by appropriately skilled and credentialled persons through a regular process of validating assessment practices and judgements.

1. An NVR RTO's assessment practices and judgements need to be regularly reviewed to allow the NVR RTO to make changes to improve the accuracy and strength of its assessment system. The intent of this standard is to require NVR RTOs to regularly validate their assessment systems to ensure VET students have been accurately assessed against the skills and knowledge required by the relevant training product.

2. The performance indicators at Standards 1.5(2)(a) and (b) concern the validation of assessment practices, assessment judgements and training products on the NVR RTO's scope of registration. 'Validation' is defined in clause 4 to refer to the process of reviewing assessment systems to ensure consistency with the training product and the Instrument, and that assessment judgements are producing consistent results. The purpose of these performance indicators is to require NVR RTOs to undertake a regular process of reviewing the means and methods by which they deliver training and assessment to ensure they remain fit-for-purpose.

3. These requirements also aim to strike a balance between establishing a regular validation cycle and allowing flexibility for NVR RTOs to self-determine validation frequency and focus. For example, Standard 1.5(2)(b) requires NVR RTOs to validate all training products on the organisation's scope of registration on a 5-year basis, or more frequently where the training product changes, risks to training outcomes are identified, or the NVR RTO receives relevant feedback that is informed by risk, feedback, and changes to training products. This is consistent with consultation findings.

4. Standard 1.5(2)(c) also requires NVR RTOs to use a risk-based approach to determine the components of the assessment system and the sample size of assessments that are to be validated in respect of a training product. In the context of Standards 1.5(2)(b) and (c), factors for consideration of risks could include, but are not limited to, any instances where the NVR RTO identifies that training outcomes may not be meeting the requirements of the Instrument, the training product or expectations of VET students/relevant stakeholders. This Standard is similarly intended to afford NVR RTOs flexibility to validate those assessments which require validation, based on any risks identified or feedback received.

5. Standard 1.5(2)(d) provides direction about validating AQF qualifications or skill sets from the Training and Education (TAE) Training Package, as specified in the Credential Policy (on the National Register). This Standard requires that, where an assessment system from such qualifications or skill sets is being validated, that assessment system must be independently validated after the first cohort of VET students with the relevant NVR RTO have completed their training and assessment in that particular training package. The purpose of this performance indicator is to permit, consistent with Standard 1.5(2)(e)(iii), assessors who hold a relevant TAE credential to undertake assessment, but to ensure the relevant assessment systems are appropriately and independently reviewed at the first available opportunity. This is because qualifications and skill sets from the TAE Training Package impact the quality of training and assessment throughout the VET sector.

6. Standards 1.5(2)(e)-(f) concern the types of persons who are permitted to undertake validation. In particular, Standard 1.5(2)(e) requires that assessment validation outcomes are not solely determined by persons involved in designing or delivering a particular training product. The purpose of these performance indicators is to ensure that appropriately skilled persons are undertaking validation, but also clarify that trainers and assessors involved in delivering a particular training product can still participate in validation of that training product provided they are not solely responsible for determining the validation outcome.

7. Finally, Standard 1.5(2)(g) requires that these validation outcomes are used by the NVR RTO to inform changes to the organisation's assessment system, ensuring the NVR RTO continues to improve its assessment system on a regular basis.

[Division 3 -- Recognition of prior learning and credit transfer]{.underline}

1. This Division gives effect to the third component of Quality Area 1 -- i.e. ensuring NVR RTOs, in offering quality training and assessment, provide VET students with adequate opportunity to seek recognition of prior learning or a credit transfer in respect of training and assessment previously undertaken.

[Standard 1.6]{.underline}

1. The purpose of Standard 1.6 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

VET students with prior skills, knowledge and competencies are supported to seek recognition of prior learning to progress through the relevant training product.

1. This standard aims to ensure that, consistent with a competency-based VET system, VET students who can demonstrate certain competencies described in a training product (to the level of rigour required by these Standards) can have such competencies recognised without undertaking unnecessary additional training.

2. The term 'recognition of prior learning' is defined in clause 4. The corresponding performance indicators at Standard 1.6(2) require NVR RTOs to: establish appropriate policies and opportunities for VET students to seek recognition of prior learning; to make such decisions based on evidence, in accordance with the organisation's assessment system in a fair, honest, transparent and consistent manner; and to document such decisions.

3. The purpose of these performance indicators is to ensure NVR RTOs establish systems that allow VET students to efficiently and fairly progress through the training product by applying for recognition of prior learning where they can genuinely demonstrate that they have relevant existing skills, knowledge and competencies to support that application.

[Standard 1.7]{.underline}

1. The purpose of Standard 1.7 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

VET students who have completed an equivalent training product are supported to obtain a credit transfer.

1. This standard aims to ensure VET students who have already been assessed as competent while undertaking an equivalent training product have those competencies transferred and recognised for the purposes of undertaking training with an NVR RTO (unless a regulatory requirement or condition prevents this). This will ensure VET students do not spend unnecessary time, nor accumulate unnecessary expense whilst undertaking VET.

2. The term 'credit transfer' is defined in clause 4. The corresponding performance indicators at Standard 1.7(2) impose similar requirements on NVR RTOs to the requirements imposed by Standard 1.6(2) in respect of recognition of prior learning.

3. The purpose of these performance indicators is to ensure NVR RTOs establish systems, including with their third-party providers, that allow VET students to efficiently and fairly progress through the training product by seeking a credit transfer where appropriate. Where a VET student provides suitable evidence that they have successfully completed an equivalent training product through another organisation, the relevant NVR RTO must support the VET student to seek and attain appropriate credit in respect of the training product.

4. Standard 1.7(2) requires VET students to be informed about their opportunity to seek credit transfer and be given access to an NVR RTO's policies about how credit can be obtained. NVR RTOs are required to act fairly, consistently and transparently as part of the credit transfer process, and document all decisions concerning credit transfers.

[Division 4 -- Facilities, resources, and equipment]{.underline}

1. This Division gives effect to the fourth component of Quality Area 1 -- i.e. ensuring NVR RTOs have appropriate facilities, resources, and equipment in place to deliver quality training and assessment.

[Standard 1.8]{.underline}

1. The purpose of Standard 1.8 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Facilities, resources and equipment for each training product are fit-for-purpose, safe, accessible and sufficient.

1. This standard aims to ensure that facilities, resources, and equipment are fit-for-purpose, and that resourcing is sufficient and appropriate to ensure VET students can effectively complete their training.

2. The corresponding performance indicators at Standard 1.8(2) require NVR RTOs to have various procedures and processes in place relating to the identification and provision of facilities, resources and equipment. This includes the NVR RTO demonstrating to the Regulator:

3. how it identifies which facilities, resources and equipment it will use to deliver the training product, including those provided by third parties;

4. how it ensures the facilities will be suitable and safe for VET students; and

5. that it has documented strategies and procedures in place to identify risks to VET students regarding the use of facilities, resources and equipment in practical settings (i.e. work placements etc.).

6. The purpose of these performance indicators is to ensure that NVR RTO facilities, resources, and equipment are fit-for-purpose, safe to use, accessible for VET students, and that there is sufficient supply to ensure VET students can effectively complete their training. These requirements apply to the NVR RTO regardless of whether the organisation, a third party, or another party (in the context of work placements etc.) are responsible for providing the facilities, resources, and equipment.

[Part 2 -- VET student support (Quality Area 2)]{.underline}

1. This Part gives effect to the second Quality Area and associated Outcome: VET students are treated fairly and properly informed, supported and protected. A text box below Part 2 refers to this Outcome.

[Division 1 -- Information]{.underline}

1. This Division gives effect to the first component of Quality Area 2 -- i.e. ensuring NVR RTOs provide clear and accurate information that is relevant to current and prospective VET students.

[Standard 2.1]{.underline}

1. The purpose of Standard 2.1 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

VET students have access to clear and accurate information concerning the organisation, the relevant training product, and students are made aware of any changes that may affect them.

1. The intent of this standard is to ensure information provided to students is up to date, accurate, clear and easy to understand, and that students receive relevant and timely information that enables them to make informed decisions regarding the training product.

2. The corresponding performance indicators at Standard 2.1(2) require that NVR RTOs:

   • provide clear, accurate and adequate information to VET students (including from third parties);

   • demonstrate how the organisation identifies and communicates required information to VET students prior to enrolment;

   • make prescribed types of information (concerning the relevant training product, support services, fees/costs/charges and any applicable obligations or liabilities) available to VET students;

   • provide, prior to enrolment or the payment of fees, documentation which sets out the training to be provided by the organisation or third parties to the individual VET student, fees/costs/charges the VET student will incur, and any applicable obligations or liabilities which may be imposed on the VET student; and

   • adequately inform VET students of any changes to training products or operations that may affect VET students.

3. The purpose of these provisions is to impose requirements on NVR RTOs to demonstrate that they have a complete set of practices in place which ensure that VET students (or prospective VET students) are provided with adequate information throughout their training and assessment to make informed decisions. It is intended that these provisions will ensure that VET students receive accurate information and advice about the relevant training product and the NVR RTO, including whether the training product is suitable for the VET student's needs and training goals.

4. These provisions are aimed at ensuring information provided to VET students by NVR RTOs does not misrepresent training or mislead VET students by leaving out relevant information or providing inaccurate information (for example, by understating the amount of hours involved in training, overstating the support services available to VET students or guaranteeing job outcomes, not disclosing all fees involved etc.).

[Standard 2.2]{.underline}

1. The purpose of Standard 2.2 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

VET students are advised, prior to enrolment, about the suitability of the training product for them, taking into account the student's skills and competencies.

1. The intent of this standard is to ensure that VET students are able to make informed decisions about whether a training product is appropriate for their skills/competencies and their learning needs. It is intended that this standard will minimise the risk of VET students unknowingly participating in training that is unsuitable for them, recognising the challenges faced by VET students who do not have the necessary foundation or skills to successfully complete the relevant training product.

2. The corresponding performance indicators at Standard 2.2(2) require that NVR RTOs have appropriate procedures in place to review the skills and competencies (including language, literacy and numeracy proficiency and digital literacy) of prospective VET students prior to their enrolment. The NVR RTO is then required, taking into account the review and requirements of the training product, to provide advice to VET students about whether the training product is suitable for them.

3. The purpose of this requirement is to ensure that prospective VET students do not enrol, or are not encouraged to enrol, in training products where they do not have the necessary foundation skills to successfully complete the training and assessment. This will ensure that prospective VET students do not waste money or time enrolling in a training product which they are unlikely to complete and can instead use the NVR RTO's advice (based on the outcome of the NVR RTO's review) to determine a more appropriate training pathway.

4. The procedures an NVR RTO must have in place to review skills and competencies (and provide necessary advice to prospective VET students) will depend on the nature of the training product, the NVR RTO's circumstances and the student cohort. For example, different procedures will be required where an NVR RTO is seeking to enrol a student in a one-year, full-time program compared to an NVR RTO seeking to enrol a VET student in a low cost, short duration, online course. In each case, the strategies for reviewing skills and competencies (and providing relevant advice) should be adapted and proportionate to the context.

[Division 2 -- Training support]{.underline}

1. This Division gives effect to the second component of Quality Area 2 -- i.e. ensuring NVR RTOs provide appropriate training support services to VET students.

[Standard 2.3]{.underline}

1. The purpose of Standard 2.3 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

VET students have access to support services, trainers and assessors and other staff to support their progress throughout the training product.

1. The intent of this standard is to require NVR RTOs to identify the training support services required by students to enable them to meet the requirements of the training product in which they are enrolled.

2. The corresponding performance indicators at Standard 2.3(2) require that NVR RTOs demonstrate how the training support services to be provided and made available to VET students are determined, and how VET students are provided sufficient access and information on how to access staff responsible for providing training support. NVR RTOs must also demonstrate that queries from VET students are responded to in a timely manner.

3. The purpose of these performance indicators is to require NVR RTOs to have adequate training support services to address the training support needs of VET students. The requirement that VET students be able to access these services and that their queries concerning these services are adequately responded to is intended to ensure that all VET students can receive appropriate training support from the NVR RTO, where appropriate.

[Standard 2.4]{.underline}

1. The purpose of Standard 2.4 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Reasonable adjustments are made to support VET students with disability to access and participate in training and assessment on an equal basis.

1. The intent of this standard is to require NVR RTOs to create an accessible learning environment for VET students with disabilities, ensuring VET students with disability are supported to participate in VET and complete the relevant training product.

2. The term 'reasonable adjustments' is defined in clause 4 to incorporate adjustments made in accordance with the Disability Standards for Education 2005 (the Disability Standards). The performance indicators at Standard 2.4(2) require that: NVR RTOs support VET students to disclose their disability, if the VET student wishes to do so; make reasonable adjustments for VET students with a disability; and, where such adjustments are not appropriate or possible, inform the VET student of the reasons for such a decision as soon as reasonably practicable.

3. The purpose of these requirements is to explicitly align the requirements on NVR RTOs with those requirements in the Disability Standards to make reasonable adjustments for VET students with disability (see Part 3 of that instrument). This will ensure that NVR RTOs, by reference to the Disability Standards, understand their obligations to provide adjustments for VET students with a disability and put in place mechanisms to allow VET students to disclose their disability and seek any reasonable adjustments they may require.

[Division 3 -- Diversity and inclusion]{.underline}

1. This Division gives effect to the third component of Quality Area 2 -- i.e. ensuring NVR RTOs foster an environment that promotes diversity and inclusion for VET students.

[Standard 2.5]{.underline}

1. The purpose of Standard 2.5 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

The learning environment promotes and supports the diversity of VET students.

1. The intent of this standard is to ensure NVR RTOs actively create a safe and inclusive learning environment for VET students that is free from racism, discrimination or any other form of harassment. This Division does not alter, impair or detract from the operation of sections 37 and 38 of the Sex Discrimination Act 1984.

2. The performance indicators at Standard 2.5(2) require that NVR RTOs foster a safe and inclusive learning environment for VET students and also foster a culturally safe learning environment for First Nations people. The purpose of these requirements is to ensure NVR RTOs create inclusive learning environments where student diversity is valued and accommodated.

3. It is expected that particular attention be given to ensuring that the learning environment is culturally safe for First Nations people. This recognises the need for affirmative measures to support First Nations people to enrol, participate in and complete training and is about:

4. acknowledging the unique experience of First Nations people in Australia;

5. recognising that First Nations peoples do not always have the same level of access to VET as non-Indigenous Australians, nor the same positive experiences; and

6. actively addressing unconscious bias, racism and discrimination, and supporting self-determination for First Nations people.

7. Standard 2.5(2)(b) applies to all NVR RTOs, even if there are no students who have identified as First Nations.

[Division 4 -- Wellbeing]{.underline}

1. This Division gives effect to the fourth component of Quality Area 2 -- i.e. ensuring NVR RTOs provide adequate wellbeing support services for VET students.

[Standard 2.6]{.underline}

1. The purpose of Standard 2.6 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

The wellbeing needs of the VET student cohort are identified and strategies are put in place to support these needs.

1. The intent of this standard is to ensure NVR RTOs support the physical, mental and emotional wellbeing of the VET student cohort, by requiring NVR RTOs to be aware of risks to student wellbeing and to put strategies in place to protect and uphold the safety and wellbeing of the student cohort.

2. The performance indicators at Standard 2.6(2) require that the NVR RTO:

3. identifies appropriate wellbeing support services for the VET student cohort by reference to the content of the training product; and

4. advises the student cohort of the availability of the services, relevant contacts for the services and any additional actions VET students can take to support their wellbeing.

5. The term 'wellbeing support services' is defined in clause 4 to mean personal support services and resources to assist with VET students' physical, mental, and emotional wellbeing. The purpose of these requirements is to ensure NVR RTOs appropriately identify and advise VET students of wellbeing support services relevant to the needs of the VET student cohort and the training product, ensuring that VET students' physical, mental, and emotional wellbeing is protected by the NVR RTO.

6. While NVR RTOs are not required to deliver all wellbeing support services directly, they must advise VET students of available supports and help them to access these supports as appropriate. For example, depending on the wellbeing needs of the cohort of VET students, the NVR RTO may organise or advertise the availability of:

   • external counselling services; or

   • services to assist in accessing financial support for VET students at risk of discontinuing their training due to financial hardship or stress.

7. Standard 2.6 does not limit the range of wellbeing support services that an NVR RTO can provide or refer VET students to, and it is a matter for the NVR RTO to consider the wellbeing needs of its student cohort.

[Division 5 -- Feedback, complaints and appeals]{.underline}

1. This Division gives effect to the fifth component of Quality Area 2 -- i.e. ensuring NVR RTOs provide anyone dealing with the organisation in relation to its delivery of services adequate means to make complaints, give feedback, or lodge appeals and that the organisation takes appropriate action regarding complaints, feedback and appeals.

[Standard 2.7]{.underline}

1. The purpose of Standard 2.7 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Feedback and complaints management addresses concerns and informs continuous improvement of the NVR registered training organisation.

1. The intent of this standard is to require NVR RTOs to implement and maintain effective feedback and complaints management systems to address any systemic issues and enhance the overall quality of VET services offered by NVR RTOs.

2. The performance indicators at Standard 2.7(2) require the NVR RTO to:

   • operate a complaints management system for VET student feedback and complaints that affords procedural fairness, responds and resolves complaints in a reasonable time, and provides additional avenues to facilitate complaint resolution;

   • support VET students to make complaints and provide information on how VET students can make complaints through the management system;

   • document outcomes of all complaints and communicate those outcomes to all parties to the complaint; and

   • use feedback and complaints to improve the organisation.

3. The purpose of these requirements is to require NVR RTOs to establish an outcomes-focused complaints and feedback management process which makes it easy for VET students and stakeholders to provide feedback or make complaints, works to resolve those complaints, and then actively uses those complaints and feedback to continuously improve the organisation's service offerings.

[Standard 2.8]{.underline}

1. The purpose of Standard 2.8 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Effective appeal processes are available to VET students where decisions of the NVR registered training organisation or a third party adversely affect the VET student.

1. The intent of this standard is to ensure NVR RTOs have effective appeal processes in place to facilitate VET students to seek a review or appeal of a decision which affects them -- for example, but not limited to, decisions relating to enrolment, recognition of prior learning, credit transfer, assessment and other matters that affect a VET student's progression through a training product.

2. The performance indicators at Standard 2.8(2) require the NVR RTO to:

   • operate a student appeals management system that allows VET students to appeal adverse decisions made by the organisation, third parties, and any person employed or contracted by the organisation;

   • ensure the appeals management system affords procedural fairness, actions appeals within a reasonable timeframe and allows for any party to the appeal to review the organisation's appeal decisions;

   • provide publicly-available and accessible information on how VET students can appeal;

   • document outcomes of all appeals and communicate those outcomes to all parties to the appeal; and

   • use outcomes of appeals to improve the organisation.

3. The purpose of these requirements is to require NVR RTOs to establish an outcomes-focused appeals management process which makes it easy for VET students to appeal adverse decisions, works to resolve those appeals in a timely manner, and then actively uses the outcomes of appeals to continuously improve the organisation's service offerings.

Part 3 -- VET workforce (Quality Area 3)

1. This Part gives effect to the third Quality Area and associated Outcome: VET students are trained, assessed and supported by people who are qualified, skilled and committed to professional development. A text box below Part 3 refers to this Outcome.

[Division 1 -- VET workforce management]{.underline}

1. This Division gives effect to the first component of Quality Area 3 -- i.e. ensuring NVR RTOs appropriately manage their VET workforce.

[Standard 3.1]{.underline}

1. The purpose of Standard 3.1 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

The workforce is effectively managed to ensure appropriate staffing to deliver services.

1. The intent of this standard is to require an NVR RTO to plan and manage its workforce so it has the right people, with the right skills, and in the right positions to deliver quality training and assessment.

2. The corresponding performance indicators at Standard 3.1(2) require that NVR RTOs demonstrate how they ensure there are an appropriate number of trainers, assessors and other staff to deliver the organisation's services, and that these staff members are able to access continuing professional development opportunities.

3. The purpose of these requirements is to ensure that NVR RTOs allocate and employ an adequate number of staff to ensure the delivery of quality services to VET students, and that these staff are afforded opportunities to continue to develop and update their professional skills, further improving the quality of the training they offer VET students.

[Division 2 -- Trainer and assessor competencies]{.underline}

1. This Division gives effect to the second component of Quality Area 3 -- i.e. ensuring NVR RTOs' trainers and assessors have, and continue to maintain, adequate skills and knowledge to deliver training and assessment.

[Standard 3.2]{.underline}

1. The purpose of Standard 3.2 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Training and assessment is delivered to VET students by credentialled people with current skills and knowledge in training and assessment.

1. The intent of this standard is to ensure that only appropriately credentialled people with current relevant skills and knowledge deliver training and assessment for NVR RTOs.

2. The corresponding performance indicators at Standard 3.2(2) require that NVR RTOs ensure:

   • training and assessment is delivered by appropriately credentialed persons as specified in the Credential Policy;

   • a person authorised under the Credential Policy to deliver training or assessment under direction is delivering high-quality training and assessment and is not permitted to make assessment judgements; and

   • all trainers and assessors undertake relevant continuing professional development opportunities.

3. The Credential Policy is defined in clause 4 to mean the document titled "Credential Policy", listed on the National Register (i.e. the training.gov.au website), as in force from time to time. The purpose of these provisions is therefore to ensure that only appropriate qualified persons can deliver training and assessment to VET students, as specified in the Credential Policy. This includes allowing for certain persons to provide training and assessment under direction -- an important safeguard to ensure the quality of the training and assessment is maintained.

4. The requirement that trainers and assessors undertake continuing professional development additionally ensures quality service delivery by requiring trainers and assessors to learn further relevant skills and ensure their understanding of training and assessment techniques are up to date.

[Standard 3.3]{.underline}

1. The purpose of Standard 3.3 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Training and assessment is delivered by persons with current industry skills and knowledge relevant to the training product.

1. The intent of this standard is to ensure that trainers and assessors have real, current and comprehensive understanding of industry practice and understand how skills and competencies will be applied in practice. This may occur through continuing professional development, ongoing industry engagement, industry work placements, etc.

2. The corresponding performance indicators at Standard 3.3(2) require that NVR RTOs ensure:

3. persons delivering training and assessment maintain an understanding of relevant industry practices and have skills, knowledge and competencies relevant to, and at least to the level of, the training product being delivered: Standard 3.3(2)(a);

4. where it engages experts for training purposes, those experts are engaged by reference to specific training or cohort requirements and where there is a specific need for them to be engaged: Standard 3.2(2)(b); and

5. systems are in place to ensure that experts who are engaged have appropriate skills etc. relevant to the training product, can only work under direction of an appropriately credentialed person, can only conduct assessment alongside the relevant trainer or assessor for the training product, and the NVR RTO has a reasonable degree of oversight over the training or assessment the expert is delivering: Standard 3.2(2)(c).

6. The intent of Standard 3.3(2)(a) is to ensure that all persons delivering training and assessment are adequately qualified to do so and continue to update their understanding of the industry skills required for VET students to succeed in their chosen field. This will ensure that NVR RTOs continue to deliver high-quality training, but also that the content of the training continues to adapt to provide VET students with the most up to date and industry-relevant skills. All people delivering training and assessment must have industry competencies, skills and knowledge that are relevant to, and at least to the level of, the training product being delivered and assessed. 'At least to the level of' refers to the level of skills and knowledge required for each training product, rather than equivalence of the AQF level. The instrument does not specify that trainers and assessors must hold the training product they are training or assessing. While this is the most direct way of evidencing the relevant industry competencies, skills and knowledge, this could also be demonstrated through a combination of formal and informal learning and skills and knowledge gained through paid or volunteer work.

7. The intent of Standards 3.3(2)(b) and (c) is to ensure that experts (i.e. individuals who have specialised industry or subject matter expertise relevant to the training product) are only engaged where there is a genuine need for them to be engaged, and the NVR RTO has an established system in place to ensure the expert will deliver high-quality training under appropriate supervision and/or guidance. This ensures that NVR RTOs are not prohibited from engaging experts where appropriate, but that engaging experts enhances (rather than diminishes) the quality of training being offered to VET students. It is important to note that NVR RTOs may engage industry experts for a range of reasons; this provision relates specifically to their engagement for the delivery of training and assessment.

Part 4 -- Governance (Quality Area 4)

1. This Part gives effect to the fourth Quality Area and associated Outcome: VET students are trained, assessed and supported by people who are qualified, skilled and committed to professional development. A text box below Part 4 refers to this Outcome.

[Division 1 -- Leadership and accountability]{.underline}

1. This Division gives effect to the first component of Quality Area 4 -- i.e. ensuring NVR RTOs put processes and structures in place to maintain accountable decision-making and to establish clear roles and responsibilities amongst staff and third parties.

[Standard 4.1]{.underline}

1. The purpose of Standard 4.1 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

An NVR registered training organisation operates with integrity and maintains accountability for the delivery of quality services.

1. The intent of this standard is to ensure that NVR RTOs operate in a manner, and cultivate a culture, that recognises the importance of complying with their legal obligations and delivering services ethically. As governing persons are key to driving culture in an organisation, it is essential that the persons given responsibility to govern the organisation have the necessary attributes to help the organisation achieve these objectives.

2. The corresponding performance indicators at Standard 4.1(2) require NVR RTOs and their 'governing persons' (defined in clause 4 of this Instrument) to demonstrate compliance with the Fit and Proper Person Requirements (made under s 186 of the Act). Standard 4.1(2) additionally requires that an NVR RTO's governing persons perform their roles in an appropriate manner, consistent with the requirements of the Instrument and any other instrument made under section 185 of the Act, and that they remain suitable to oversee the operation of the NVR RTO.

3. The term 'governing person' (defined in clause 4) includes 'executive officers' and 'high managerial agents'. These terms are defined in section 3 of the Act. The terms cover those individuals who have a controlling interest or managerial responsibilities over the NVR RTO. The purpose of these requirements is therefore to ensure that individuals who exercise such responsibilities over an NVR RTO act in a manner which is conducive to establishing a culture of good governance and clear lines of accountability within the organisation.

[Standard 4.2]{.underline}

1. The purpose of Standard 4.2 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Roles and responsibilities of NVR registered training organisation staff and third parties are clearly defined and understood.

1. The intent of this standard is to ensure NVR RTOs establish effective systems for defining roles and responsibilities within the NVR RTO (and with third parties), and that these responsibilities are clearly communicated.

2. The corresponding performance indicators at Standard 4.2(2) require NVR RTOs to inform staff members, third parties, and other persons engaged by the organisation of their relevant obligations under the Instrument and any other instrument made under section 185 of the Act, as in force from time to time. Standard 4.2(2)(b) requires staff-members to be informed of any legislative or regulatory changes concerning the organisation's delivery of services. Standard 4.2(2)(d) also requires the NVR RTO to document the roles and responsibilities of persons engaged by the organisation (including third parties).

3. The purpose of these requirements is to ensure that the NVR RTO creates an understanding amongst all staff and third parties engaged by the organisation of their respective roles and responsibilities. This is intended to ensure that all individuals are aware of what is expected of them, in accordance with the requirements under this Instrument (and any other instrument made under section 185 of the Act).

4. Additionally, the requirement that NVR RTOs document the roles and responsibilities of persons engaged by the organisation is intended to promote a culture of good governance and accountable decision making. This ensures that all parties are aware of (and do not exceed) the remit and scope of their responsibilities when delivering services and that persons responsible for key aspects of service delivery can be held accountable for their actions.

[Division 2 -- Risk management]{.underline}

1. This Division gives effect to the second component of Quality Area 4 -- i.e. ensuring NVR RTOs put processes in place to identify any risks to VET students, staff and the organisation itself.

[Standard 4.3]{.underline}

1. The purpose of Standard 4.3 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

Any risks to VET students, staff and the organisation itself are identified and managed.

1. The intent of this standard is to require NVR RTOs to have a risk management system that is focused on identifying, managing and reviewing risks to students, staff and the NVR RTO.

2. The corresponding performance indicators at Standard 4.3(2) require NVR RTOs to identify, manage and review specific risks to VET students, staff and the organisation itself (see Standard 4.3(2)(a)). This includes demonstrating:

   • how governing persons monitor and manage the financial performance of the NVR RTO -- mitigating the risk that an NVR RTO will not be able to sustain its operations, which can disrupt the provision of training and assessment to VET students (Standard 4.3(2)(b));

   • it has a system for identifying, recording and managing actual and perceived conflicts of interest -- preserving the integrity of NVR RTO decisions and reducing the risk of fraudulent activities and corruption by ensuring accountability for the NVR RTO's operations (Standard 4.3(2)(c)); and

   • where VET students are aged under 18, it identifies and manages any risks to those VET students by reference to the training content and modes of delivery, and having regard to the National Principles for Child Safe Organisations (Standard 4.3(2)(d)).

3. A note to Standard 4.3(2)(b) is included as a reminder that specific requirements in relation to financial viability of NVR RTOs are imposed via the Financial Viability Risk Assessment Requirements made under section 158 of the Act.

4. The purpose of the requirement imposed by Standard 4.3(2)(a) is to ensure that risks are appropriately identified and dealt with by NVR RTOs. It is intended that identifying and addressing these risks will ensure that VET students are able to undertake training in a safe environment.

5. Further, the Standards 4.3(2)(b) to (d) recognise that additional risks may arise in the course of the ongoing operation of the NVR RTO, and for VET students of the NVR RTO (including those aged under 18). In particular, Standard 4.3(2)(d) recognises that unique risks may arise for VET students under 18 and requires the NVR RTO to specifically consider any risks that may present for VET students in this age group, including by having regard to the National Principles for Child Safe Organisations, available on the Australian Human Rights Commission website.

[Division 3 -- Continuous improvement]{.underline}

1. This Division gives effect to the third component of Quality Area 4 -- i.e. ensuring NVR RTOs establish systems to ensure they monitor and evaluate the organisation's performance to establish a process of continuous improvement.

[Standard 4.4]{.underline}

1. The purpose of Standard 4.4 is to impose performance indicators that ensure NVR RTOs achieve the following Outcome Standard:

An NVR registered training organisation undertakes systematic monitoring and evaluation of the organisation to support quality delivery and the continuous improvement of services.

1. The intent of this standard is to require NVR RTOs to undertake systematic monitoring and evaluation, the nature of which will vary based on context, including the size of the NVR RTO, the complexity and scope of its operations and the relevant student cohort.

2. The corresponding performance indicators at Standard 4.4(2) require NVR RTOs to:

3. put in place systems which monitor and evaluate the organisation's performance with the requirements in the Instrument and any other instrument in force under section 185 of the Act (i.e. the Compliance Standards);

4. use outcomes derived from that process of monitoring and evaluation to continuously improve the organisation\'s performance; and

5. lawfully collect and analyse relevant data to inform continuous improvement.

6. These indicators are aimed at ensuring that NVR RTOs establish systems that compel them to evaluate their performance, including where third-parties deliver services on their behalf, with the requirements in the Instrument and any other instruments in force under section 185 of the Act and also allow them to collect data and feedback from VET students, staff, industry, State and Territory training authorities, VET regulators and employers of current or former VET students. It is intended that establishing these systems will ensure that NVR RTOs can continuously improve outcomes for VET students by monitoring feedback and the organisation's performance. Ensuring there is a mechanism in place to lawfully collect feedback links in with Standard 2.7, which requires feedback to be actioned appropriately.