If you’re running an RTO in Australia, ignoring compliance rules could expose you to hefty RTO fines, with even a single form submission error or marketing oversight costing tens of thousands of dollars.
In 2025, we’re seeing ASQA take a stronger stance on compliance breaches — and that includes financial penalties that hit hard.
So here’s the truth:
Even if your training delivery is solid, one missed TVA submission, a misleading course ad, or a forgotten scope update could cost your RTO $19,800… or even $198,000.
Let’s make sure that doesn’t happen to you.
Why This Is Urgent
Under the National Vocational Education and Training Regulator Act 2011 (NVR Act), ASQA has the authority to issue:
- 💸 Infringement notices (on-the-spot fines)
- 📄 Written directions (mandatory rectification)
- ⚖️ Federal Court civil penalties (up to $198,000 per breach)
- 🚫 Registration suspension or cancellation
These penalties are legally enforceable — and they apply even if the breach was accidental or overlooked.
Who’s Most at Risk?
We’ve found this happens most often with new or lean RTOs who don’t yet have a full-time compliance person. Some warning signs:
- No one’s tracking NCVER/TVA reporting windows
- Marketing updates are done ad hoc
- Student handbooks haven’t been reviewed in 12 months
- Scope of registration hasn’t been checked since approval
If that sounds familiar, this blog is your safety net.
The Real Cost of Non-Compliance
Here’s exactly what ASQA can fine you — based on penalty units, which are currently valued at $330 (as of 1 Jan 2023):
RTO Breaches vs. Penalties (Using $330 Penalty Unit Rate)
| Breach Type | NVR Act Section | Penalty Units | Fine (Unit × $330) | Description |
|---|---|---|---|---|
| TVA or NIL return not submitted | s.111(2) | 60 units | $19,800 | Missed annual data provision requirement |
| Delivering training outside scope | s.94 | 120 units | $39,600 | Offering a qualification not on your scope |
| Issuing certificate without assessment evidence | s.97 | 600 units | $198,000 | No records of enrolment or completed competency |
| Misleading advertising/marketing | s.111(1)(e) | 60 units | $19,800 | Fees, outcomes or funding misrepresented |
| Missing RTO code in public info | s.96 | 20 units | $6,600 | Must appear in all marketing material |
| Ongoing, unresolved breach (Federal Court) | Civil Proceedings | Up to 600+ units | Up to $198,000+ | Repeated or serious breaches not rectified |
What Triggers a Fine?
Based on our work with RTOs, here are the most common trigger points:
- ❌ Failure to submit Total VET Activity (TVA) or a NIL return
- ❌ Outdated course listed on your website (even in an old PDF)
- ❌ Fee structures that don’t match the student agreement
- ❌ Third-party agents promoting unapproved content
- ❌ Scope of registration not updated after internal course change
- ❌ Certificates issued without recorded training/assessment evidence
You don’t have to do anything malicious to be fined — just something incomplete.
The Simple System That Keeps You Safe
Here’s how you can protect your RTO — no matter your size.
Step 1: Appoint a Compliance Lead (or Hire One)
Every RTO needs a designated compliance officer or external consultant. Their job is to:
- Track all mandatory ASQA deadlines
- Keep the scope of registration aligned with delivery
- Audit marketing and enrolment material monthly
- Submit TVA/NIL returns and annual declarations on time
Even part-time support can save you thousands.
Step 2: Use a Live Compliance Calendar
Create reminders and alerts for:
- ✅ TVA submission deadline (usually Feb)
- ✅ Annual declaration (due March)
- ✅ Course scope audits (quarterly)
- ✅ Marketing review (monthly)
- ✅ AVETMISS validation and NCVER updates
Your calendar should be shared across your operations and compliance team.
Step 3: Run a Monthly Compliance Marketing Audit
Check every platform your RTO uses:
- Website course codes and durations (vs. TGA)
- Fees and entry requirements
- Student handbook (especially LLND and fee info)
- CRICOS data if applicable
- Third-party agent content
- Google Search results and PDFs
🔒 Keep proof: screenshots, update logs, version history.
The Simple System That Keeps You Safe
Here’s how you can protect your RTO — no matter your size.
Step 1: Appoint a Compliance Lead (or Hire One)
Every RTO needs a designated compliance officer or external consultant. Their job is to:
- Track all mandatory ASQA deadlines
- Keep the scope of registration aligned with delivery
- Audit marketing and enrolment material monthly
- Submit TVA/NIL returns and annual declarations on time
Even part-time support can save you thousands.
Step 2: Use a Live Compliance Calendar
Create reminders and alerts for:
- ✅ TVA submission deadline (usually Feb)
- ✅ Annual declaration (due March)
- ✅ Course scope audits (quarterly)
- ✅ Marketing review (monthly)
- ✅ AVETMISS validation and NCVER updates
Your calendar should be shared across your operations and compliance team.
Step 3: Run a Monthly Compliance Marketing Audit
Check every platform your RTO uses:
- Website course codes and durations (vs. TGA)
- Fees and entry requirements
- Student handbook (especially LLND and fee info)
- CRICOS data if applicable
- Third-party agent content
- Google Search results and PDFs
🔒 Keep proof: screenshots, update logs, version history.
Frequently Asked Questions (FAQs)
1. What is a penalty unit?
It’s a legal measurement used to calculate fines. As of Jan 2023, 1 penalty unit = $330.00.
2. Can ASQA issue a fine without an audit?
Yes. They can issue an infringement notice based on failure to submit data (like TVA), or from detecting marketing non-compliance.
3. What if I pay the fine — am I in the clear?
Paying resolves the notice, but ASQA may still monitor or escalate depending on the risk level and history.
4. Can I challenge the infringement?
Yes. You can request:
- A payment plan
- Withdrawal of the notice
- A reconsideration by ASQA (within 30 days)
5. Does ASQA need to notify me before issuing the fine?
No advance notice is required for issuing a written direction or infringement if the breach is evident.
6. Is a superseded course still visible on Google a breach?
Yes. Even archived or old PDFs accessible online are considered marketing breaches if they promote superseded content.
7. Are we liable for what our third-party agents say?
Yes. You’re responsible for all marketing and enrolment activities done on your behalf — even by agents.
8. Can ASQA cancel my RTO registration over one mistake?
Usually not immediately. But repeated or unrectified breaches can lead to suspension or cancellation.
Final Word: Protect Your RTO Like It’s Your Business Asset
It’s not enough to train well. You have to market correctly, report on time, and keep every policy aligned.
The easiest way to do that?
- 🧑💼 Appoint a compliance manager or consultant
- 🗂️ Build a living compliance calendar
- 🧾 Run a monthly audit (and keep evidence)
Disclaimer:
The information presented on the VET Resources blog is for general guidance only. While we strive for accuracy, we cannot guarantee the completeness or timeliness of the information. VET Resources is not responsible for any errors or omissions, or for the results obtained from the use of this information. Always consult a professional for advice tailored to your circumstances.
