2025 Standards for RTOs - Skills Education’s Standards Hub 4.1

Navigate the Standards

Quality Area 4 - Governance

Effective governance and a commitment to continuous improvement supports the quality and integrity of VET delivery.

Division 1 - Leadership and accountability

Requirements

Standard 4.1

Outcome Standard

(1) An NVR registered training organisation operates with integrity and maintains accountability for the delivery of quality services.

Performance Indicators

(2) An NVR registered training organisation demonstrates:

(a) the organisation and its governing persons are fit and proper persons, having regard to the Fit and Proper Person Requirements made under section 186 of the Act, as in force from time to time;

(b) its governing persons are suitable persons to oversee the operation of the organisation;

(c) its governing persons act diligently and make informed decisions which facilitate compliance with this instrument and any other instrument made under section 185 of the Act, as in force from time to time; and

(d) its governing persons lead a culture of integrity, fairness and transparency in the organisation’s delivery of services.

Risks

Failing to adopt governance structures, processes and procedures that ensure your RTO staff are, and remain, fit and proper in respect of their particular roles in VET delivery. For example, failing to undertake due diligence checks as part of your general recruitment or selection practices, and intermittently throughout their engagement/ employment.
Inadequate governance to manage risks and safeguard against improper or illegal conduct and prevent the RTO from being vulnerable to insider exploitation or criminal activities.
Insufficient processes in place to ensure governing persons continue to meet the Fit and Proper Person Requirements.
Shadow-directorship in an organisation that leads to a failure to recognise all governing persons with influence.
Failing to detect and respond to behaviours or individuals in the organisation that are undertaking concerning or suspicious activity.
Not requiring staff or governing persons to properly disclose their interests in other corporations or organisations.
Not acting on feedback received from students, industry or the community related to the quality and integrity of RTO operations.