Western Institute of Technology Pty Ltd and Australian Skills Quality Authority

The Administrative Appeals Tribunal (the Tribunal) considered the application by Western Institute of Technology Pty Ltd (the applicant) for review of a decision by the Australian Skills Quality Authority (ASQA) to refuse to register the applicant as a registered training organisation (RTO). The applicant sought to offer vocational education and training (VET) courses, including a Diploma of Project Management and a Diploma of Leadership and Management. ASQA's refusal was based on concerns that the applicant did not meet the financial viability requirements stipulated in the VET Quality Framework, specifically clause 1.3 of the Standards for Registered Training Organisations (RTOs) 2015.

The primary legal issue before the Tribunal was whether the applicant had demonstrated that it met the financial viability requirements under the VET Quality Framework. This involved assessing whether the applicant had provided sufficient evidence to satisfy ASQA that it had the financial capacity to operate as an RTO, including meeting its financial obligations and ensuring the continuity of its training and assessment services. The Tribunal was required to determine if ASQA's decision to refuse registration on these grounds was the correct or preferable decision.

In its reasoning, the Tribunal applied the principles of administrative review, focusing on the evidence presented by the applicant to demonstrate financial viability. The Tribunal noted that the applicant had provided financial statements, projections, and details of its funding sources. However, the Tribunal found that the applicant had not adequately addressed ASQA's concerns regarding the sustainability of its business model and its ability to meet ongoing financial commitments, particularly in light of projected revenue and expenditure. The Tribunal considered the applicant's proposed revenue streams and the associated risks, concluding that the evidence did not sufficiently demonstrate a robust and sustainable financial position.

The Tribunal affirmed ASQA's decision to refuse the applicant's registration as an RTO.