As of 1 July 2011, RTOs must comply with the requirement for the protection of student fees as set out in the Standards for NVR Registered Training Organisations.

The section of the Standards for NVR Registered Training Organisations relating to 'Financial management for initial registration' sets out the following options:

11.3 Where the applicant intends collecting student fees in advance it must ensure it will comply with one of the following acceptable options for continuing registration:

• (a) (Option 1) the RTO is administered by a state, territory or Commonwealth government agency
• (b) (Option 2) the RTO holds current membership of an approved Tuition Assurance Scheme
• (c) (Option 3) the RTO may accept payment of no more than $1000 from each individual student prior to the commencement of the course. Following course commencement, the RTO may require payment of additional fees in advance from the student but only such that at any given time, the total amount required to be paid which is attributable to tuition or other services yet to be delivered to the student does not exceed $1,500
• (d) (Option 4) the RTO holds an unconditional financial guarantee from a bank operating in Australia for no less than the full amount of funds held by the RTO which are prepayments from students (or future students) for tuition to be provided by the RTO to those students, or
• (e) (Option 5) the RTO has alternative fee protection measures of equal rigour approved by the National VET Regulator.

The following options are currently available for NVR Registered Training Organisations:

• Option 1—protecting a student enrolled at a RTO on the strength of it being administered by a state, territory or Commonwealth government agency
• Option 3—limiting the amount of fees collected in advance, and
• Option 4—unconditional financial guarantee from a bank operating in Australia.
• The NQC has advised that Option 2—approved Tuition Assurance Scheme (TAS) is unlikely to be approved before October 2011. As such, Option 2 is not currently available as an option for ASQA RTOs.
• In regard to Option 5—alternative fee protection measure of equal rigour, ASQA will consider the 'principles underpinning the approval of alternative fee protection measure of equal rigour', which have been endorsed by the NQC. RTOs may use the form on the Forms page of this site to apply for approval of an alternative fee protection measure.

This and other key points of the NVR Standards will be explained and discussed with government representatives during ASTDI workshop next 17th and 18th August