If you’re planning on starting a new RTO, or adding additional training products to your current offer, it may be tempting to simply add the new course to your menu and wait for the first enrolments to come in before you finalise all the details. However, hidden within ASQA’s Standards for RTOs is a requirement that RTOs must, at all times, have all the resources available to deliver every training product on the RTO’s scope of registration—whether you are currently delivering it or not.
This means that before you lodge your RTO registration, or add a new training product to your offer, you need to identify the financial impact of each and every course on your bottom line.
Here are the primary cost elements associated with the delivery of training courses that you will need to factor into your budget:
1. Trainers and assessors
Staffing is usually the largest expense for any business, which is why you should start here when creating your resource budget. For RTOs, the cost of training and assessment staff can vary greatly depending on their level of experience, the number of hours they are expected to teach and even the number of students enrolled. Even if you plan on offering your training online or in a ‘virtual classroom’, chances are you will still need someone to create the course and to assess your students’ skills and knowledge.
2. Educational and support services
The kind of educational and support services you provide will depend on the learner cohorts you take on. For example, students who require flexibility in their training schedule, people with a disability or those for whom English is not a first language may require very specific supports. You should also consider what IT support and/or access to counselling services you will provide. Complaints mediation services are also a factor (and a separate Standard applies to this provision).
ASQA does not specify how it evaluates whether sufficient support is being provided to students, however, there is an assumption that the purpose of the support is to maximise the outcomes for the learner. The regulator notes that successful RTOs are those that tailor support and other services to students’ needs.
3. Accessible learning resources
Training packages and VET accredited courses often specify resources that must be used in assessment at a unit of competency level. Your RTO must provide students with access to all necessary resources that enable learners to meet the requirements of each unit of training. This can be achieved through owning, leasing, or renting, or by arranging for resources to be accessible to the students in another way.
If you are delivering your course in partnership with a specific workplace, you must ensure the required resources are available in that workplace.
4. Facilities and equipment to accommodate enrolled learners
The location where you will deliver the training is another large expense which you should carefully consider. For example, physical locations, such as classrooms or replica workplaces, require utilities such as electricity and an internet connection; virtual training needs to be hosted or provided via USB. And don’t forget to account for the assessment process.
You will need to determine how many students you can safely and effectively accommodate and, if need be, place a cap on your enrolments in order to meet with ASQAs requirements.
The above are just some of the budget considerations you will need to factor into your financials. We are experts in helping RTOs to calculate and lodge their financial requirements with ASQA. If you would like assistance setting-up or growing your training business, call us for an appointment today.