General information, not legal advice. The official places to check are ASQA’s pages for providers and the law itself on the Federal Register of Legislation.
Who counts as a third party
A third party “means any person who has an arrangement with an NVR registered training organisation to deliver services, but does not include:”
- “employees of the organisation;”
- “experts engaged by the organisation; or”
- “government agencies and government funded agencies that refer VET students to the organisation and do not receive any payment from the organisation for doing so.”
The word “services” reaches further than teaching. It covers “training and assessment”; “training support services (but excludes counselling, mediation, and information and communication technology services)”; and “any activities related to the recruitment of VET students including marketing, enrolment, induction, or the collection of fees”. On those words, an arrangement for someone to market courses or enrol students for the RTO is an arrangement to deliver services.
What the agreement must do
Section 17(1), printed complete
“An NVR registered training organisation must ensure that where services are delivered by a third party on the organisation’s behalf, the provision of the services is governed by a written agreement that:”
- “is entered into by the organisation and third party as soon as reasonably practicable prior to the third party delivering any of the services set out in the agreement;”
- “requires the third party to cooperate with the National VET Regulator where the Regulator conducts any audit of the NVR registered training organisation’s operations;”
- “requires the third party to provide accurate responses to requests for information from the Regulator relevant to the third party’s delivery of the services;”
- “prohibits the third party from:” “using the NRT logo;” “using the organisation’s branding;” “issuing any AQF certification documentation; and”
- “contains the following particulars:” “the business or trading names of the parties to the agreement;” “the dates on which the agreement will commence and end;” “all the parties’ obligations concerning the delivery of the services; and” “an entitlement for the organisation to regularly monitor the quality of the services being delivered by the third party.”
The two notices to ASQA
Section 17(2): an RTO “must notify the National VET Regulator of any written agreement made pursuant to subsection (1) within: 30 calendar days of the agreement being entered into or prior to the obligations under the agreement taking effect, whichever occurs first; and 30 calendar days of the agreement ending.”
The certificate stays with the RTO
A third party may train and assess, but the agreement must bar it from issuing any AQF certification documentation. ASQA’s guide puts the duty to the RTO this way: “You ensure that VET students are made aware of any third party involvement in their training and assessment, including that their AQF certification documentation will be issued by your RTO (not the third party).” What a certificate must show, and the 30-day rule for issuing it, are in file 03.
What ASQA expects to see
ASQA’s practice guide lists example activities that show the rule working. Among them: “You have evidence that a written agreement was in place with each of your third parties before they commenced delivery of any services.” “You can demonstrate how you authenticate the credentials and practices of trainers and assessors engaged by your third party providers.” And: “You ensure that your third parties are aware of their ongoing requirement to cooperate with ASQA.”
Third parties elsewhere in the rules
Section 17 is the centre, but third parties appear across both instruments. Among them:
| Provision | What it requires |
|---|---|
| s 7, marketing | Advertising for services a third party or expert has been engaged to deliver must say which services they will deliver, including recruiting students or delivering training and assessment for the RTO. |
| s 10, records | Assessments a student submits to the RTO or a third party are kept for 2 years after the student completes the training product. |
| s 18, prepaid fees | Protection measures apply where the RTO or a third party receives prepaid fees from or for one person in excess of $1500 for the same VET course (the figure in the instrument since 1 July 2025). |
| Standard 2.1 | Details of any third-party arrangements that apply to the training are easily accessible to students. |
| Standards 2.7, 2.8 | Complaints about, and appeals against decisions of, any third parties are open to students. |
| Standard 4.2 | A system for ensuring third parties meet the requirements and know their obligations. |
The full list is in the two instruments, F2025L00355 and F2025L00354.
Why outsourcing does not move the duty
ASQA lists the known risks it sees with third parties. The first lesson is in its own words: “Assuming that outsourcing services to third parties will release your RTO of its compliance obligations.” Others on its list include failing to notify ASQA of new and ending agreements, letting a third party start before both parties have signed, and not checking the fitness and propriety of the third party’s relevant staff.
The Act’s side of it
The National Vocational Education and Training Regulator Act 2011 makes unregistered training an offence, but section 116(1A) carves out a person who provides all or part of a VET course “on behalf of an NVR registered training organisation in accordance with a written agreement” with it. Western Australia’s Act has its own version of that carve-out, set out in file 05.