New regulations target ‘Outlaw’ RTOs, back students and legitimate providers

RTOs give people like me, people who didn't go to university, an opportunity to fit into the workforce. When we talk about vocational education, we don't talk enough about the value RTOs hold in the sector.

I join most industry stakeholders in being supportive of these changes. These changes will benefit not only students but also employers and industries.

I know that it's only a minority of outlaw RTOs that are ruining it for a compliant majority. The bill backs students by calling out the false and misleading conduct of RTOs, providing a safeguard from being subjected to unscrupulous behaviour.

It addresses the long overdue need for increased penalties. It weeds out RTOs that have been dormant for 12 months and presents providers from expanding course offerings where they have been operating for less than two years.

It also gives the minister the power to determine a class of RTOs that should not be registered because of an unsustainable influx into the VET sector that may result in exploitative behaviour. This change is one I approach with caution.

If abused, a blank ticket to suspend a class of RTOs has the potential to disadvantage some providers. However, I also see the need for this power, which is why I will support Senator Cash's amendment to limit the application of that power to 12 months.

RTOs are essential to ensuring that people have opportunities to get trained, find a job and stay competitive within their industry. We're struggling with massive skill shortages right now.

A strong RTO sector is key to plugging these gaps. The RTO sector brought up a senator for Australia and Tasmania—plus staffers here in Parliament House—and they are very, very good at what they do.

RTOs are the backbone of the new way to study. Truckers, farmers, admin people, doctors—through COVID, RTO-trained people were administering COVID tests and helping us get through that dark time.

My experience with RTOs is good, but I know not everyone has such positive things to say, and that does make me sad. This bill won't affect RTO providers doing the right thing.

But for RTOs that do shonky things, this will pull them into line, benefiting industry, employers, students and maybe some more here in Parliament House.