Message from the CEO

The VET Sector is an online magazine and newsletter that is dedicated to providing information, resources, and articles for all stakeholders of Registered Training Organisations (RTOs). In each edition, we cover topics that are relevant and important to RTOs, such as compliance, resources, and best practices. Our goal is to provide valuable information that will help RTOs improve their operations and better serve their students. 

In this edition of The VET Sector, we have covered a number of compliance and resources-related articles. We have included as always invaluable information and articles for all our RTO stakeholders, from trainers, marketing team, operations, governance, and administration to compliance, there is something for everyone in these articles. You will also find a privacy policy template that our team has created for you to use and customise your privacy policy for your training organisation. 

If you participate, share your ideas, feedback, and thoughts, and discuss how we can improve The VET Sector, we would love to hear from you!

Sukh Sandhu

CEO

As a training organisation in Australia, it is important to stay up-to-date with the latest changes in regulatory legislation. This is because the regulatory environment in Australia is constantly changing, and new legislative requirements are introduced on a regular basis.

The rapidly changing regulatory landscape for training organisations in Australia can be attributed to a number of factors.

The Australian skills and vocational education sector is highly dynamic, with new courses, training providers and delivery models constantly emerging. This means that the legislation governing the sector must be regularly updated to reflect these changes.

The sector is highly competitive, which means that training providers must continually adapt their offerings to meet the needs of students and employers.

The ever-changing nature of the global economy means that new technologies and approaches to training are constantly being developed, which necessitates changes to the existing regulatory framework.

As the needs of businesses and industries change, so too do their training requirements, necessitating further changes to the legislation.

Finally, the sector is also subject to regular review by government bodies, which often results in changes to the legislation. The Australian government is constantly reviewing and updating its policies and regulations in order to ensure that the country’s training organisations are providing quality education and training services.

All of these factors contribute to the need for training organisations to keep up-to-date with the latest regulatory changes.

In order to ensure that training organisations are able to provide quality training and development services, they must comply with the latest legislative requirements.

These include requirements relating to the provision of quality training, the development and delivery of training programs, the assessment of students’ progress, and the reporting of results. In addition, training organisations are also required to meet a number of financial and operational requirements, such as those relating to the payment of fees, the maintenance of financial records, and the provision of insurance. While complying with all of these obligations can be challenging, it is important for training organisations to remember that they play an important role in ensuring that the country’s workforce is properly educated and trained.

However, compliance with regulatory legislation can be a challenge for training organisations. This is because the legislation is often complex and ever-changing. As a result, training organisations need to be constantly adaptable and flexible in order to meet the needs of their clients.

In order to stay up-to-date with the latest changes in regulatory legislation, training organisations should regularly consult with industry experts and keep abreast of the latest news and developments. Additionally, they should also consider utilising online resources, such as the Australian Training Directory, which provides information on the latest changes in regulatory legislation.

By staying up-to-date with the latest changes in regulatory legislation, training organisations can ensure that they are able to provide quality training and development services to their clients. This, in turn, will help to improve the productivity and competitiveness of businesses in Australia.

If you are a training organisation that is looking to stay up-to-date with the latest changes in regulatory legislation, it is important to consult with industry experts and utilise online resources.

Additionally, you should also keep abreast of the latest news and developments. By doing so, you can ensure that you are able to provide quality training and development services to your clients.

When it comes to compliance, it’s always better to be proactive than reactive. That’s why training organisations need to conduct regular internal audits in order to ensure that their practices are up to par. By doing so, they can avoid the potential consequences of non-compliance, which can include hefty fines and damage to their reputation. Internal audits also help to ensure that the organisation is providing quality training services.

Internal audits give training organisations a chance to identify any areas where they may be falling short and make necessary corrections. They also provide an opportunity to assess whether new procedures or processes are working as intended. Ultimately, internal audits help training organisations stay compliant with the relevant regulations and standards.

It’s important for training organisations to regularly audit their practices to ensure compliance with standards. By conducting these audits, organisations can identify potential areas of non-compliance before they cause problems.

While conducting regular internal audits may seem like extra work, it’s really a necessity in today’s highly regulated environment. By taking the time to audit their own practices, training organisations can avoid the costly and time-consuming process of dealing with compliance issues down the road.

Regular auditing also helps organisations to improve their overall performance by identifying areas where improvements can be made. By conducting audits on a regular basis, training organisations can ensure that they are providing the best possible service to their clients and customers.

As it’s critical that you maintain control over your training organisation and its operations. One way to do this is through regular internal audits. Internal audits help ensure that your employees are adhering to internal policies and procedures, and external regulatory guidelines and help identify any areas where improvements can be made.

While you can certainly conduct your own internal audits, it may be beneficial to hire an independent, ISO-qualified auditor like CAQA. As experts in the field of auditing, CAQA can provide an objective perspective on your organisation’s operations and make recommendations for improvement.

There are many benefits to working with CAQA, including:

1. Expertise: As experts in auditing, CAQA has the knowledge and experience to identify any areas of concern within your organisation. Most of CAQA auditors have over 25 years of experience of auditing experience in vocational education and training and higher education industries.

2. Independence: As an independent auditor, CAQA is not biased towards your organisation or its operations. This allows us to provide an objective perspective on your organisation’s strengths and weaknesses.

3. Recommendations: After conducting an audit, CAQA will provide you with a report detailing our findings and recommendations for improvement. This report can be used to make changes within your organisation to help improve efficiency and compliance.

4. Cost-effective: Hiring CAQA to conduct your internal audits can save you time and money in the long run. By identifying areas of concern early on, you can avoid costly mistakes down the road.

If you’re looking for an expert, independent auditor to conduct internal audits at your organisation, look no further than CAQA. Contact us today to learn more about our services and how we can help you improve your organisation’s operations.

It is no secret that the cost of living in Australia is high. This is especially true for students, who often have to take on part-time jobs in addition to their studies just to make ends meet. Unfortunately, this means that they are often treated as nothing more than a revenue stream by both the government and training organisations.

The high cost of tuition fees is one of the biggest financial burdens facing students today. In some cases, these fees can be so high that it takes students years to pay them off – if they ever do. This puts a huge amount of financial pressure on students, which can impact their studies.

This situation is compounded by the fact that many students in vocational education and training are from low-income backgrounds and do not have the same access to resources as their wealthier counterparts. This means that they are at a distinct disadvantage when it comes to finding jobs and supporting themselves financially.

What’s more, the quality of education in Australia has been declining in recent years. This is due to the fact that training organisations are underfunded, which has led to large class sizes and a decline in the quality of teaching. This is yet another way in which students are being treated as nothing more than a source of revenue. From exorbitant fee hikes to cuts in essential services, it’s clear that the needs of students are often being neglected in favour of financial gain.

It’s time for the government and training organisations to start treating students fairly. They deserve to be given access to affordable education and be treated with respect. Only then will they be able to reach their full potential.

We need to see a shift in priorities, with an emphasis on providing quality education that meets the needs of students and prepares them for the workforce. This means investing in experienced and qualified staff, supporting them to deliver high-quality teaching, and ensuring adequate resources are available to students.

It is also critical that we move away from the one-size-fits-all approach to education, which does not meet the needs of all learners. We need to create programs that are tailored to the individual needs of each student, and that provide the flexibility to allow them to progress at their own pace.

It is vital that the government takes action to address this issue and ensure that all students in vocational education and training are treated fairly and given the opportunity to succeed. This includes providing adequate funding to providers, ensuring that courses are of a high quality, and making sure that students from all backgrounds have access to the resources they need.

Only by taking these steps will the vocational education and training sector be able to provide students with the skills and qualifications they need to find good jobs and build prosperous futures.

According to a new analysis, businesses in Australia are in the midst of a skills crisis, and the country ranks second-worst among industrialised and developed nations for its lack of trained skilled workers. This places Australia in the middle of a skills crisis.

As of the end of the March quarter, roughly three per cent of all jobs in Australia were unfilled, making it the developed world’s second-most severe labour shortage. This is a problem for Australian firms, which are suffering through the second-most severe labour shortage in the developed world.

According to the most recent economic forecast published by the Organisation for Economic Co-operation and Development (OECD), which stated that we are only second to Canada in the labour crisis, we have reached this conclusion.

The current skills shortage is costing Australian companies billions of dollars.

Australian businesses are losing out on billions of dollars each year due to a skills crisis that is leaving them short-staffed and unable to find qualified workers.

The Australian Bureau of Statistics (ABS) disclosed on Wednesday, August 6, 2022, that out of more than 15 million total positions in Australia, there are approximately 420,000 jobs that are currently vacant. This represents a vacancy rate of 2.8 per cent of the labour market, which is equivalent to one job out of every 35.

According to the ABS, the number of job openings climbed by 4.6 per cent between the beginning of January and the end of March. This increase significantly surpassed both the growth rate (which was up 0.6 per cent) and the number of jobs filled (up 0.4 per cent).

Mining, banking and insurance services, administrative assistance, and wholesale commerce are the industries that are suffering the most severely as a result of the shortages.

Yesterday, the Minister of Agriculture, Murray Watt, acknowledged the dilemma and made a commitment that addressing the labour and skills shortfall will be a high priority for his new portfolio. He also stated that he was “open to any ideas” about how to address the problem.

The Australian Bureau of Statistics (ABS) showed that 1.3 million people, or one in ten employed people, changed occupations in 2021-22. This has generated an additional difficulty for businesses. Perhaps a more fair term would be “the Great Resignation.”

The rate of employment mobility is at its greatest level in ten years.

According to Kris Grant, CEO of the management consulting firm ASPL Group, staff retention should be one of the top concerns for businesses right now, and there are five things that companies should act on right away.

First, Grant says, management must create a work environment where there can be an open dialogue with staff. This allows grievances to be aired (and solutions to be sought), but it also ensures a staff member feels valued in the business.

“When employees feel like their bosses are listening to them and value their opinion, everyone benefits,” he said.

“If employees feel valued, they are likely to work harder for the bosses and contribute to an organisation.

“But if managers don’t listen to them or value their opinion, the risk is they will start looking elsewhere for better employment conditions.”

Grant continues that fostering an inclusive workplace culture where activities, awards, and events cater to all staff — including the remote or hybrid ones — will make a happier, more productive environment nearly inevitable.

“If your workplace only rewards a person of a particular type, and excludes others, then those who aren’t included will soon walk away from their jobs, leaving the top dog without key support.”

To that end, Grant continues, to offer flexible working arrangements works, and it should be on offer at least part of the time.

“Workers who feel their employers offer enough flexible options are 2.6 times more likely to be happy in their jobs, according to LinkedIn,” he said.

“Allowing flexibility encourages goodwill, which works both ways, encouraging your employees to stay in your organisation.”

Significantly, Grant says businesses should give a lot of thought to their onboarding experience to wow new recruits to make them feel ingratiated — fast.

“The battle to retain staff begins on day one with effective onboarding,” he said.

“Integrating workers into their positions, their team and the company’s culture is critical [so] make new hires feel welcome and understand why they are there. Done well, onboarding enhances retention.”

And finally, investing in the learning and development of existing staff not only makes them more valuable to the business but helps foster loyalty and goodwill.

“LinkedIn research shows that 94% of employees said they would stay at a company longer if they were offered more learning opportunities,” Grant said.

“Investing in your staff has real payback for your organisation, and is another key strategy to retaining your staff.”

So what can be done to solve the skills crisis?

Investing in education and training is essential to solving the skills crisis. We need to ensure that our schools, training providers and universities are producing graduates with the skills that businesses need and that workers have the opportunity to upskill and reskill throughout their careers.

The government also needs to do more to attract skilled workers from overseas. Australia has long been a destination for highly-skilled migrants, but our current visa system is preventing many of them from coming here.

Reforming our visa system to make it easier for skilled workers to come to Australia would help alleviate the skills shortage, while also boosting our economy.

The skills crisis is a major problem for businesses across Australia, but it is one that can be solved. By investing in education and training, and reforming our visa system, we can ensure that businesses have the skilled workers they need to thrive.

It’s no secret that working in a toxic work environment can have serious consequences for your health. From anxiety and depression to physical health problems, the effects of a toxic workplace can be far-reaching and devastating.

When talking about a “toxic work environment”, what comes to mind for most people are things like office politics, backstabbing colleagues, and maybe even a tyrannical boss.

If you’re currently working in a toxic environment, it’s important to take steps to protect your health. Here are some critical health issues to be aware of:

Stress, anxiety and depression

Working in a toxic environment can cause or exacerbate anxiety and depression. If you’re already struggling with mental health issues, a toxic workplace can make them worse. Symptoms of anxiety and depression include:

• Feeling overwhelmed or hopeless
• Loss of interest in activities you used to enjoy
• Difficulty concentrating or making decisions
• Changes in sleep patterns
• Increased use of alcohol or drugs

Cardiovascular disease. Exposure to workplace stress has been linked with an increased risk of cardiovascular disease. This includes conditions such as heart attacks, strokes, and high blood pressure.

Respiratory problems. Stress can also lead to or worsen respiratory problems such as asthma or bronchitis.

Gastrointestinal issues. Stress can cause or contribute to gastrointestinal problems such as ulcers, irritable bowel syndrome (IBS), and acid reflux.

Skin problems. Stress can also cause skin problems such as acne, psoriasis, and eczema. One study found that people who experience high levels of job stress are more likely to have skin problems than those with low levels of stress.

Headaches and migraines. Stress can trigger headaches and migraines in some people.

Immunity problems. Prolonged exposure to stress can weaken your immune system, making you more susceptible to illness and infection. Stress can weaken your immune system, making you more susceptible to illness. One study found that people who experience high levels of job stress are more likely to get colds and other upper respiratory infections.

Sleep problems: A toxic work environment can make it difficult to get a good night’s sleep. One study found that people who had high levels of job stress were more likely to experience insomnia and other sleep problems.

Memory problems: Stress can lead to memory problems and difficulty concentrating. One study found that people who experience high levels of job stress are more likely to have trouble with short-term memory and executive functioning (the ability to plan and organise).

Weight gain: Stress can lead to weight gain by triggering the release of cortisol, a hormone that leads to increased appetite and cravings for high-calorie foods.

Career damage: A toxic work environment can damage your career in many ways. For example, you may be passed over for promotions or not receive the recognition you deserve. You may also find it difficult to build positive relationships with colleagues. This can all lead to job dissatisfaction and eventually, job loss.

Relationship problems: The stress of a toxic work environment can spill over into your personal life, causing problems in your relationships. You may find yourself withdrawn and irritable with loved ones. You may also have difficulty sleeping, which can lead to arguments and further strain on your relationships.

Toxic work environments can have serious consequences for your health. If you’re struggling to cope, it’s important to seek help. Talk to your doctor about the effects of stress on your health and develop a plan to manage the stress of your job. You may also want to consider talking to a therapist or counsellor who can help you deal with the emotional toll of a toxic workplace.

There is no organisation that isn’t subject to complaints from time to time. In the case of Registered Training Organisations (RTOs), complaints are governed by the Standards for RTOs 2015. Standard 6 requires RTOs to have a system in place for managing complaints.

While it’s obviously important to deal with complaints in a timely and effective manner, it’s also important to see them as an opportunity for continuous improvement. After all, if someone has taken the time to make a complaint, they obviously feel strongly about something that your RTO is doing (or not doing). By taking a proactive approach to complaints management, you can turn a negative experience into a positive one for both your organisation and your clients.

By working to resolve complaints quickly and effectively, you can not only improve the learner experience but also use complaints as a way to identify systemic issues and areas for improvement within your organisation.

So what can you do to turn a complaint into an opportunity for positive change?

Here are three suggestions:

1. Use complaints as a trigger for review

Complaints can be a valuable source of information about where your RTO’s processes or procedures may be falling short. They can also highlight areas where staff may need more training or support.

Whenever a complaint is received, take the time to review the situation and see if there are any changes that could be made to prevent similar problems from happening in the future.

2. Communicate with complainants

It’s important to keep complainants updated on the progress of their complaints and what actions are being taken as a result. This will help to build trust and confidence in your RTO’s complaint-handling process.

3. Use feedback to improve your processes

Once a complaint has been resolved, take the time to follow up with the complainant to get their feedback on how the process was handled. This feedback can be used to improve your procedures for dealing with complaints in the future.

There are a few key things to keep in mind when managing complaints:

• Complaints should be managed in a confidential and respectful manner.
• All complaints should be investigated thoroughly and promptly.
• Corrective action should be taken where necessary.
• Feedback should be provided to the complainant on the outcome of their complaint.

Here are some tips on how to use complaints for continuous improvement:

• Make sure you have a clear and accessible complaints policy and procedure. This will help ensure that all complaints are dealt with in a consistent and fair manner.
• Encourage clients to give feedback, both positive and negative. Feedback is essential for continuous improvement, but it can be hard to get if you don’t ask for it.

Use complaints as an opportunity to review your policies and procedures. Are they working as intended? Do they need to be updated or improved?

Be open to suggestions from clients on how you could improve your services. They are the ones who use your services on a day-to-day basis, so their feedback is invaluable.

Take action on the feedback you receive. This shows clients that you are serious about making improvements based on their input.

By taking a proactive approach to complaints management, you can turn a negative experience into a positive one for both your organisation and your clients. By using complaints as an opportunity for continuous improvement, you can ensure that your organisation is providing the best possible service to its clients.

An effective complaints management system will help you to resolve issues quickly and efficiently, while also providing valuable insights into areas of improvement within your organisation. By using complaints as a way to drive continuous improvement, you can ensure that your organisation is providing the best possible experience for all learners.

Profile:

With 14+ years of experience, specialising in providing accounting and taxation services to RTOs and VET industry, we can help you with RTO’s financial reporting and tax compliance to eliminate the stress and confusion of meeting your ATO compliance. We can help you with the cash flow budgets and forecasts to avoid nasty surprises. We can also assist you with the completion of FVRA Tool for your initial registration, change of scope/ownership and monitoring review. We provide easy-to-access and understand real-time reports using cloud technology like Xero, ensuring that your RTO is always financially healthy, protected and ready for growth.

Q: What inspired you to become an accountant and help training organisations?

A: I love watching my clients grow and helping them during all stages of their business life cycle. Deciding to specialise in only one industry RTOs, allow us not to recreate the wheel. We have a deeper understanding of tools like the FVRA, which most accountants have never completed. We attend RTO conferences to ensure we are always kept abreast of the challenges and opportunities RTOs are facing.

Q: What challenges have you encountered while working with training organisations?

A: Development of our back-end systems like work papers to ensure we can get RTOs submissions of their FVRA Tool on a timely basis with supporting calculations if requested by ASQA.

Q: What do you think are the key financial considerations for training organisations?

A: Cash Flow Management is very important. Training Organisations are facing the rising payroll costs and overheads. More recently, securing finance is getting harder. You need to have a good understanding of the required working capital and the possible sources of funding to ensure adequate working capital.

Q: What advice would you give to new or existing training organisations about financial management?

A: Maintain a Budget to quantify the business strategy for your training organisation. The start of the financial year is a perfect time to prepare the budget by estimating the income and expenses for the next 12 months. Then review the Budget vs Actuals monthly to manage your progress against the goals and decide on strategies for the next month. Xero has great features to upload your budget and track your performance. The key is to stay disciplined in the process.

Q: What do you think are the biggest financial mistakes that training organisations make?

A: Not looking at the bigger picture, concentrating more on the short-term Profits rather than building a solid Balance Sheet for the RTO that includes the tangible and intangible assets like goodwill.

Q: Do you have any other advice or tips that you would like to share with training organisations when it comes to financial management?

A: The golden tip is always to run your RTO as if you are going to sell it. Always keep your books accurate and up to date. Then you will get the most value for yourself and show this value to a potential buyer at any time.