Merc Training Pty Ltd and Australian Skills Quality Authority

This matter concerned an application by Merc Training Pty Ltd for initial registration as a Registered Training Organisation (RTO). The Australian Skills Quality Authority (ASQA) had initially rejected the application and subsequently affirmed that decision upon reconsideration. Merc Training sought review of ASQA's decision to affirm the rejection. The Administrative Appeals Tribunal (AAT) was tasked with conducting a merits review of ASQA's decision.

The primary legal issues before the Tribunal were whether Merc Training complied with the Standards for NVR Registered Training Organisations, specifically the Fit and Proper Person Requirements for its chief executive officer, and whether ASQA had adequately discharged its obligations as a model litigant by providing all relevant documents to the Tribunal. The Tribunal was required to determine if Merc Training met the criteria for registration under the National Vocational Education and Training Regulator Act 2011 (NVR Act) and associated legislative instruments.

The Tribunal noted significant difficulties in assessing the evidence due to ASQA's failure to lodge all relevant documents in its possession or control, as required by section 37 of the Administrative Appeals Tribunal Act 1975. ASQA's reliance on its own internal analyses rather than presenting the full evidentiary material was found to be unhelpful and contrary to its role as a model litigant, which includes assisting the Tribunal to reach the correct or preferable decision. The Tribunal emphasised that it must conduct a fresh merits review and could not simply defer to ASQA's prior findings without independent consideration of all evidence.

Consequently, the hearing was adjourned to allow ASQA to file the necessary documents. The Tribunal indicated that it would undertake a full review of the evidence in light of the Standards and Fit and Proper Person Requirements, with the onus on Merc Training to demonstrate its compliance.