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Revised regulation of ‘scope of registration’ applications in VET sector – Regulation Impact Statement – Department of Industry

On 11 September 2014, the Minister for Industry announced that the Australian Skills Quality Authority (ASQA) will expand the delegation for registered training providers (RTOs) to make decisions about changing the scope of their registration. The new approach will reduce red tape for highly compliant RTOs, by addressing the need for training providers to seek approval from ASQA before they offer new courses or make changes to the courses they are already delivering. This will be achieved through ASQA inviting the most highly compliant RTOs to receive a delegation, under section 226 of the National Vocational Education and Training Regulator Act 2011, which will enable them to manage their own scope without the need to apply to ASQA for changes. There will be no legislative changes to the NVETR Act or associated standards. The change is expected to reduce the compliance costs for those RTOs who no longer need to prepare change of scope applications, reduces their delay costs from waiting for approvals, and avoids the need for them to pay application fees. However, higher risk providers, including new market entrants, will continue to face these costs. There is also likely to be a saving to the ASQA through no longer processing applications from low risk providers. The revised regulation has been assessed as likely to have a measurable but contained impact on a sector of the economy with minor impacts on competition. The RIS prepared and certified by the Department of Industry, wasassessed as compliant by the Office of Best Practice Regulation, with the RIS also being consistent with best practice. The RIS estimated the average annual regulatory cost saving at $3.32 million per annum. The OBPR has agreed to the regulatory cost saving.