When you apply to become an RTO, and under certain conditions, ASQA requires you to demonstrate financial viability by submitting the Financial viability risk assessment tool. This tool requires you to provide information on your organisation’s financial viability, including your financial history and projections.
This existing obligation under the NVR Act is enacted through a legislative instrument known as the Financial Viability Risk Assessment requirements (FVRAR). With the existing 2011 FVRAR instrument due to expire on 1 October 2021, an instrument with no change in terms, has been made, The National Vocational Education and Training Regulator (Financial Viability Risk Assessment Requirements) Instrument 2021.
In July ASQA engaged with the Provider Round Table and Stakeholder Liaison Group to discuss a planned review of the FVRAR later this year. We will consult the sector as part of this review to ensure the instrument is fit for purpose for the evolving VET sector, allowing providers to be self-assured around the requirements to manage ongoing financial viability as well as to take account of changes to accounting and financial standards.