S. 4.3.21(1) amended by No. 71/2010 ss 27(1), 30(4).
(1) An object of this section is to ensure that, of all registering bodies, the registering body that registers an RTO has the primary responsibility to take action against the RTO if a ground mentioned in subsection (3), (3A) or (3B) arises.
S. 4.3.21(2) amended by No. 71/2010 ss 27(1), 30(4).
(2) On one or more of the grounds mentioned in subsection (3), (3A) or (3B), the Authority may on its own initiative—
S. 4.3.21(2)(a) amended by No. 70/2008 s. 22.
(a) amend the scope of registration or registered conditions, or impose a new condition on the registration, of an RTO that was registered by another registering body, but only to impose a restriction applying in this jurisdiction; or
S. 4.3.21(2)(b) amended by No. 70/2008 s. 22.
(b) amend the scope of registration or registered conditions, or impose a new condition on the registration, of an RTO that was registered by it, including by imposing a restriction applying in this or another jurisdiction; or
(c) suspend the registration, or part of the scope of registration, of an RTO that was registered by it, by imposing a prohibition applying in this or another jurisdiction while the suspension is in force; or
(d) cancel the registration of an RTO that was registered by it.
S. 4.3.21(3) substituted by No. 71/2010 s. 18.
(3) The grounds are as follows—
(a) the registration, or part of the scope of registration, was obtained because of incorrect or misleading information;
(b) the RTO has contravened a condition of registration;
(c) the RTO or a high managerial agent of the RTO has not complied with or does not have a record of compliance with RTO standards;
(d) the RTO or a high managerial agent of the RTO—
(i) has become bankrupt or taken the benefit of a law for the relief of bankrupt debtors, or compounded with their creditors or made an assignment of their property for their benefit; or
(ii) is a director of a company or body that has been wound up; or
(iii) has been disqualified from managing corporations under Part 2D.6 of the Corporations Act; or
(e) the RTO or a high managerial agent of the RTO has been convicted of—
(3)(e)(i) amended by Nos 31/2018 s. 35, 33/2020 s. 18(11).
(i) a category A offence; or
(ii) an offence that involves fraud or dishonesty; or
(3)(e)(iii) amended by No. 4/2017 s. 17(1)(b).
(iii) an offence against a Consumer Act within the meaning of the Australian Consumer Law and Fair Trading Act 2012 or a law relating to company administration, including financial administration; or
(iv) an offence equivalent to an offence described in subparagraph (i), (ii) or (iii) in another jurisdiction;
S. 4.3.21(3)(f) amended by No. 73/2012 s. 15(1).
(f) the RTO has not paid the required registration fees;
S. 4.3.21(3)(g) inserted by No. 73/2012 s. 15(2).
(g) the RTO has breached a government training contract.
S. 4.3.21(3A) inserted by No. 71/2010 s. 27(2).
(3A) A further ground is that the RTO has ceased to have the provision of education and training as its principal purpose, unless an exemption under section 4.3.16(4A) applies.
See section 4.3.16(4C) which allows applicants to provide certain prescribed ancillary services and not fall outside of having the principal purpose of providing education and training.
S. 4.3.21(3B) inserted by No. 71/2010 s. 30(5).
(3B) A further ground is that the RTO does not have an effective complaint handling process to handle complaints by past, current or prospective students, which the applicant is required to have under Part 4.6A.
See Part 4.6A for what constitutes an effective complaint handling process.
(4) The Authority may not impose a restriction under subsection (2)(a) unless the registering body that registered the RTO—
(a) fails to take any step to deal with the matter to which the grounds relate within 30 days after the matter comes to its attention; or
(b) fails, after taking any step to deal with the matter to which the grounds relate, to take another step within 30 days.
(5) Subsection (4) does not apply if the Authority is relying on a ground established by a compliance audit under section 4.3.26.
(6) Subsection (4) does not stop the Authority, before the end of a 30 day period mentioned in the subsection, taking all steps necessary to impose a restriction at any time after the period has ended.
(7) A restriction imposed under subsection (2)(a), (b) or (c) may, but need not, relate to a particular place or jurisdiction, but if it does so, it may only be imposed because of a particular fact situation that has arisen in the place or jurisdiction.
(8) A restriction imposed under subsection (2)(a), (b) or (c) must be consistent with this Chapter and the RTO standards.
(9) In exceptional circumstances, the Authority may exercise its powers under subsection (2)(c) to direct the RTO to immediately stop conducting operations continued under section 4.3.23(3).
(10) Before cancelling the registration of an RTO under subsection (2)(d), the Authority must consult the registering bodies of each of the other jurisdictions where the RTO is operating.
(11) Failure to comply with subsection (10) does not affect a cancellation of the registration of an RTO.
S. 4.3.21A inserted by No. 71/2010 s. 19.