A new law that will ring a bell for RTOs

Once upon a time, the only thing that rang after hours was the landline, usually your mum checking if you’d eaten. Fast-forward to 2025 and the average RTO owner’s phone buzzes at 6am with a compliance query, pings at 10pm with a CRICOS student panicking over an assignment and vibrates again at midnight when your trainer uploads assessments to the LMS.

Welcome to the modern workplace, where the lines between work and life have blurred more than the ASQA audit matrix.

Enter Australia’s new “right to disconnect” law. From August 2025 (for both large employers and small businesses), employees now have the legal right to refuse “unreasonable” work contact outside their normal hours and employers can face serious penalties if they don’t respect those boundaries.

For RTOs, this matters more than most industries. Trainers, compliance staff and managers are notorious for late-night work and student contact across time zones. What once seemed like “commitment” could now look like “contravention.”

As Infinity Business Brokers, we’re here to break it down: what the law says, how it applies to RTOs, the positives and negatives and — importantly — how compliance in this area doesn’t just keep Fair Work off your back, it can add (or subtract) value when it comes time to sell your RTO.

What the law actually says

The “right to disconnect” is part of amendments to the Fair Work Act 2009, effective in stages:

The law applies from 26 August 2025 and states that employees can legally refuse unreasonable contact outside working hours.

Key points:

• Employees have the right to ignore or refuse unreasonable work calls, emails, texts or messages outside their ordinary working hours.
• It does not mean staff can never be contacted; the test is whether the contact is reasonable given the circumstances.
• If a dispute arises, the Fair Work Commission can make binding orders.

Penalties for non-compliance:

• Breach of Fair Work Act = civil penalty of up to $18,780 for individuals and $93,900 for companies.
• “Serious contraventions” (deliberate or systemic breaches) can be fined up to $187,800 (individual) and $939,000 (company).
• Large employers also risk unfair dismissal or adverse action claims tied to right-to-disconnect breaches.

Importantly, contractors are not covered by this law and it applies to employees only.

How it applies in an RTO setting

On paper, the law sounds straightforward. In practice, RTOs live in the grey zones. Here’s what it looks like in real life:

Case study 1: Trainer Jo (CRICOS RTO)
Jo trains CRICOS students. Many of her learners can only contact her after hours. Students often WhatsApp her at 11pm Sydney time. Under the new law, Jo can refuse to respond until work hours, unless responding late is “reasonable.”

Reasonable? If the student has an urgent welfare issue (e.g. safety concern), yes.
Unreasonable? If it’s just a question about assessment formatting, absolutely.

Case study 2: Compliance Officer Chris
Chris gets an email from management at 10pm asking for last-minute evidence for an ASQA audit scheduled next week but the CEO is going away for a few days in between. Chris has every right to ignore the email until the next morning unless the RTO is facing an immediate compliance deadline that would genuinely collapse without his action.

Reasonable? Possibly, if the deadline is the next day and no other option exists.
Unreasonable? If the audit is two weeks away and management simply left prep too late.

Case study 3: The RTO CEO
The CEO texts trainers on Saturday morning about low enrolment numbers. Trainers can now decline to engage until Monday. The CEO could be breaching the law if repeated contact like this is deemed unreasonable.

The positives for RTOs

While some employers groan about “red tape,” there are silver linings for RTOs:

• Healthier, happier staff – Trainers already burn out from marking and student support. Reduced after-hours demands mean better work-life balance, which lowers turnover. In an industry plagued by trainer shortages, that’s a big win.
• Clearer boundaries improve culture: Policies that respect downtime send a strong message: “We value you as people, not just trainers.” That makes your RTO more attractive to both staff and future buyers.
• Professionalisation of management: It forces owners and managers to sharpen operations: better planning, clearer delegation and improved LMS use.
• Compliance as a value driver: Buyers pay more for RTOs that show governance maturity. A clean record with Fair Work is another tick in due diligence.

The negatives and challenges for RTOs

But it’s not all positive. Challenges loom:

• Loss of flexibility: Many trainers actually prefer to mark assessments or answer emails at odd hours that suit their lifestyle. RTOs will need to adapt policies so voluntary late work doesn’t morph into an expectation.
• Australia’s time zones: National RTO students don’t always respect “AEST business hours.” Without good systems, student experience scores could dip.
• Added HR overhead: Policies, contracts and induction training need updates. It’s another compliance box to tick — and for smaller RTOs, every box takes time.
• Potential disputes: “Reasonable” is vague. One trainer’s emergency is another’s inconvenience. Managers will need judgement and disputes may end up in the Commission.

Contractors

• Not covered by the law. However, if you use contractors heavily and treat them like employees, you may invite sham contracting risk — a separate Fair Work headache.

What’s excluded

• Emergencies: WHS issues, serious safety matters, urgent IT failures.
• Genuine flexibility: If an employee chooses to work odd hours (with no expectation), it’s fine.
• Casual chats: Social contact isn’t covered. If you bump into your trainer at Bunnings, you can say hello without breaching the Act.

Penalties and risks

This is where it gets serious. A failure to respect the right to disconnect could trigger:

• Civil penalties: Up to $18,780 (individual) / $93,900 (company) or up to $187,800 / $939,000 for serious contraventions.
• Unfair dismissal claims: In larger RTOs, staff disciplined or dismissed over refusing unreasonable contact could bring claims.
• Reputation risk: Word spreads fast. An RTO known for after-hours intrusion may struggle with trainer recruitment and retention.
• Valuation impact: Buyers scrutinise HR and compliance. A history of disputes or penalties could lower multiples and scare away premium acquirers.

Infinity’s view: compliance as value

At Infinity, we don’t just look at compliance as “avoiding trouble.” We see it as part of an RTO’s business value story.

When buyers ask about culture and governance, they want proof that your RTO manages risk. A right-to-disconnect breach isn’t just an HR issue, it signals weak systems, poor planning and potential liabilities. That can mean a lower multiple in valuation.

On the flip side, RTOs that embrace this law by updating policies, training managers and showing leadership, will not only keep staff happier but also send buyers a strong signal: this is a professionally run organisation with future-ready governance.

Checklist & flowchart for RTO owners

• Update employment contracts to reflect the right to disconnect.
• Revise staff handbooks and HR policies.
• Train managers on “reasonable vs unreasonable” contact.
• Communicate expectations to staff and students (especially CRICOS).
• Review contractor arrangements for cultural alignment.
• Document processes to show compliance (audit-ready).

Flowchart:

The right to disconnect doesn’t mean the end of dedication, flexibility or RTO agility. It means the end of unreasonable intrusion into staff lives.

Handled well, this law will give your trainers and staff healthier boundaries, boost retention and demonstrate governance maturity. Handled poorly, it could cost you fines, disputes and when it comes time to sell, a hit to your valuation.
Infinity have seen again and again that compliance isn’t just red tape. It’s a value multiplier. Buyers want confidence that when they step into ownership, they’re not inheriting a culture of burnout and Fair Work risk.

The right to disconnect is another curveball for employers, especially RTOs already balancing ASQA compliance, CRICOS obligations, reporting and the daily reality of keeping students and staff engaged. On top of everything else, here’s one more rule that looks simple on paper but messy in practice.

The truth is, the right to disconnect law is untested. No one knows exactly how the Commission will rule in the grey zones. Add to that the messy overlap with working-from-home arrangements, where “ordinary hours” can already be blurred  and now a law to create friction before it creates clarity.

At Infinity, we see compliance laws like this for what they are: hard work upfront, but an opportunity to separate the professionals from the rest. Smart RTO owners won’t be scared off. They’ll treat this as another discipline of good governance, one that builds resilience, attracts talent and protects long-term value.

Yes, it will create more work. Yes, it clashes awkwardly with flexible and work-from-home arrangements. And yes, it’s untested which means disputes will be inevitable before the boundaries are truly clear.

But this is not a reason to panic. It’s a reason to get organised. The RTOs that take the lead by updating contracts, training managers and showing respect for staff downtime will not just avoid fines, they’ll build a healthier culture and a stronger commercial story for buyers.

By Travis Latter – Infinity Business Brokers – THE RTO SPECIALISTS

The announcement of 295,000 international student places for 2026 is a win, but let’s be clear: it’s only a start. For those of us in the sector, the relief is real. Certainty, predictability and the prospect of stronger intakes. But RTO owners, trainers and staff at the coal face know the truth: demand, compliance burden and skills shortages are rising faster than government policy is moving. Infinity welcomes the news, but as the market leader, we are saying loudly – it’s not enough.

Why this step was foreseeable

The Albanese government’s previous National Planning Level (NPL) capped new overseas student commencements at 270,000 in 2025, aligning with pre‑pandemic volumes and reflecting a managed approach to growth. The incremental rise to 295,000 in 2026 was anticipated among insiders aware of the strategic draft of the International Education and Skills Strategic Framework – promising sustainable, quality‑focused growth in international education.

Big Picture: International Education’s Pedigree in Australia’s Economy
International education is one of Australia’s top services exports. In pre‑pandemic years, it generated roughly $37–$47 billion annually, supporting 250,000 jobs and contributing around 0.8–1% of GDP. According to the Reserve Bank of Australia, international students spend on par with Australian residents on living expenses, so excluding fees, their spending remains substantial domestically.

Supporting skills shortages and improving trade balance

Australia faces acute shortfalls in critical occupations. Nurses, IT specialists, early childhood educators and more are in short supply and the problem is growing dire. The pipeline of international students is vital for addressing these gaps: many enrol in fields aligned with national labour market needs and a considerable portion transition into the workforce post‑graduation.

VET pathways consistently improve employability across the board, even outside technical fields. RTOs are not just training providers—we are the backbone of workforce alignment. That reality needs more than polite recognition; it needs bold support and faster policy reform.

What it really means for RTO owners and buyers

• Predictable and managed growth: The 2026 increase provides much‑needed stability, paving the way for confident business planning.
• Dedicated VET focus: Of the 295,000 cap, approximately 95,000 new international VET commencements are anticipated in 2025 and likely into 2026 as well. That means RTO‑accessible cohort growth.
• Quality and integrity emphasized: Government reforms prioritise education quality and operational transparency—aligning tightly with RTO standards rooted in fair pricing, integrity and transparency.
• Upside for M&A and expansion: Buyers eyeing scalable VET providers can seize this moment of rising demand. International student intakes offer strong revenue streams and a pathway to build reputation.

A strategic moment to celebrate and leverage

This rise in caps is good news not just politically, but economically and strategically. It restores confidence in the sector, rewards providers who invest in accommodation and regional engagement and signals long‑term commitment to building Australia’s skilled base.

For RTO leaders: this is the moment to be proactive—pitch aligned course offerings, expand industry-certified micro‑credentials and strengthen quality supports for international cohorts.

Travis Latter of Infinity Business Brokers shares insights in an exclusive interview on how AIBB is raising the bar in business brokering through professional education and training. From certification to specialised forums, discover how the industry is evolving to meet global standards.

Travis Latter in BSale

BSale Australia

Executive Summary

The Australian RTO sector is at a crossroads. Increased compliance, digital transformation
and shifting learner expectations are forcing operators to evolve rapidly. However, this is not
the main determination in a slightly declining market.

The single greatest reason we have a declining market and the most worrisome factor
affecting RTOs is a distinct lack of trust in Government and their handling of VET training in
Australia.

Notwithstanding ASQA’s continued push for transparency, RTO owners do not trust the
Federal and State Government’s efforts (or lack thereof) in private education. The continued
focus on TAFE as the main provider is detrimental to our industry and does not reflect the
needs of those who rely on the services of Private RTOs.

With close to 90% of training delivered by non-TAFE providers, the imbalance in support and
funding is catastrophic for the industry.

I am all for less reputable and dormant RTOs being closed and equally I am vehemently
against good RTOs having to close their doors due to no fault of their own. In saying that, a
quote from Moneyball (2011) is never more true:

“Adapt or die. Times change, there is no denying that, and if we don’t change and
innovate with them, we will fall by the wayside into a sea of mediocrity and
insignificance.”

This report will look at the effect of Government involvement and the balance of variables in
the education industry in Australia at present.

This report captures more than just statistics. It reflects the mindset of an industry in
transition. Owners are weighing their next move, buyers are getting more selective and
regulators are tightening expectations.

It also includes results from our 200 strong survey.

Key findings:

• Market size: Over 5 million students are engaged in skills training, with
  independent RTOs supporting 88.5% of these learners. The sector contributes
  ~$8.2B to GDP.
• Regulatory changes: The revised Standards for RTOs, effective from 1 July
  2025, aim to enhance quality outcomes and provide greater clarity for RTOs and
  regulators but most RTOs are not ready for implementation and reporting.
• Technological adoption: Digital transformation is underway, with a focus on
  integrating AI and online delivery methods.
• Valuations: 91% of vendors do not know the value of their RTO accurately nor
  (besides profits) what the 5 most important levers for growth are.
• Exit plan: 85% of RTOs do not have a clearly defined exit plan or succession
  plan.
• Market sentiment: Buyers and sellers are navigating a landscape marked by
  increased compliance requirements and shifting funding models and general
  uncertainty.
• Economic contribution: The VET sector contributes significantly to Australia’s
  economy by addressing skill shortages and enhancing workforce productivity.
• Buyers: Cautiously optimistic, focusing on RTOs with strong compliance records
  and diversified course offerings
• Buyers: Buyers have more choice as they look at RTOs presently and are taking
  longer to make a concrete decision as they navigate through risks like compliance
  and opportunity.
• Sellers: Facing challenges due to increased regulatory scrutiny and funding
  uncertainties, leading to strategic exits or consolidations.
• Online delivery: The shift towards online learning has accelerated, with RTOs
  adopting digital platforms to reach a broader audience. Digital-first delivery is no
  longer optional.
• AI integration: Artificial Intelligence is being explored to personalise learning
  experiences, streamline administrative tasks and aid in compliance. AI integration
  is becoming standard in compliance systems.
  • If you are not using AI in these areas, you are falling behind.
  • RTOs using AI audit tracking, PD logs and automated AVETMISS
    reporting are 3x more likely to pass ASQA audits cleanly.
• Vendors: Many Vendors feel battered and bruised by the Governments lack of
  assistance and are prepared to negotiate on timings – not just price.
• Micro-Credentials: There’s a growing demand for short, targeted courses that
  provide specific skills, aligning with industry needs. Non-accredited training is
  growing.
• Apprenticeships and Traineeships: These continue to be vital pathways, with
  increased government support to address skill shortages.
• Profits squeezed: RTOs are experiencing squeezed profit margins due to
  increased compliance costs and competition.
  • Online RTOs are still seeing net profit margins of 45% – 50%
  • Domestic RTOs should still be looking at 20%+ Net profit
  • CRICOS RTOs are struggling to achieve 10% Net Profit mainly due to
    slow student growth and increased agent fees.
  • Online-only models are yielding 28% higher EBITDA. CRICOS growth
    remains strong.
  • Providers serving regional areas or First Nations funding channels are
    achieving superior multiples.
• Funding uncertainties: Changes in government funding models and policies
  have created uncertainties, impacting financial planning and sustainability.
• Emerging course areas: Courses in cybersecurity, data analytics and AI are in
  high demand.
• Healthcare and aged care: With an ageing population, courses in this area
  continue to outperform more generic qualifications. There is a growing need for
  qualified professionals in these sectors.
• Underserved learner segments: Targeting regional and remote communities
  presents opportunities to expand reach and address skill gaps.
• CRICOS: The International Student market has endured negative impacts and has
  seen diminished returns triggering unprecedented losses and a sharp decline in
  student confidence in the Australian market. This is causing students (and agents)
  to move to countries like Canada and the UK.
• Market structure: Large RTOs: Comprise a smaller percentage but hold
  significant market share due to extensive course offerings and resources.
• Small to Medium RTOs: Make up the majority, often specialising in niche areas
  or specific industries.
• Aggregators and uni-pathway groups are actively acquiring as the Higher Ed
  enrolments continue to decline.
• Mergers and acquisitions: The sector has seen increased consolidation, with
  larger RTOs acquiring smaller ones to expand their scope and capabilities.
• Importance of data-driven decision making: Utilising data analytics is helping
  RTOs identify areas for improvement, ensure compliance and enhance student
  outcomes.
• Avoiding low-ball: Compliance cost creep, audit fatigue, trainer shortages and
  LMS obsolescence are major inhibitors to a sale. Vendors should resolve these
  areas before listing to avoid delays and lowball offers.
• Median time to sale: (Infinity deals): 86 days. This has changed from 68 days at
  the same time last year with the most desirable sectors being Health, WHS,
  Community Services, IT and trades.
• Student preferences: 82% of learners prefer blended or online delivery
• Trainer shortages: 67% of RTOs are experiencing Trainer shortages in aged
  care, WHS and education support with 43% of RTOs expecting this shortage to
  deepen and worsen.
• Valuation benchmarks: Generalist RTOs: 2.8–3.6x EBITDA, CRICOS: 2.5–3.0x
  EBITDA, Online-only RTOs show 28% stronger EBITDA margins.

Panel sidebar

Real case: In 2025, Infinity sold an online-only CRICOS RTO with full
audit file structure in 49 days. Sale multiple: 4.1x EBITDA. Why? LMS
strength, CRICOS delivery compliance and audit-ready trainer logs.

• 81% of surveyed vendors say they would sell within 14 months if the offer reflected
  a fair market price.

Recommendations and Future Outlook

• ASQA: Sector consolidation will remove 500–700 providers over 3 years.
• ASQA: Registration of initial RTOs will continue to be slowed down and based on
  filling skill priority areas.
• Value: As barriers to entry increase, residual value in a RTOs will continue to hold.
• CRICOS: The Australian CRICOS market will bounce back but not at the levels
  seen previously.
• Outcomes: Outcome-based funding and employment-linked delivery will
  dominate. The qualification name is less important than the outcomes it produces.
• Invest in technology: Adopt digital tools to enhance learning and operational
  efficiency.
• Diversify offerings: Expand course offerings to meet emerging industry needs
  and attract a broader student base.
• Selling now: RTO owners considering a sale in the next 12–24 months should:
  • Order a valuation NOW!
  • Look at ways to enhance the offering
  • Minimise risk
  • Prepare internal audit files
  • Validate trainer records and volume-of-learning logs
  • Document funding eligibility and clean scope delivery
  • PLAN. PLAN. PLAN

Full survey results

Infinity conducted a survey involving 200 RTO stakeholders. They were asked a variety of
questions and the results are below. We are interested in your take on these results.

This results data offers a window into sentiment, preparedness and strategic direction in a
highly regulated, fast-evolving market.

• 65% of RTOs have implemented online learning platforms.
• Only 40% feel fully prepared for the new Standards.
• 70% of RTOs report increased interest in technology-related courses.
• 81% of sellers say they would exit within 24 months if offered the right price.
• 67% of sellers regret not preparing earlier

Trust in Government

Low trust in Government is the major factor in RTO disharmony at present.
Less than one-third of participants expressed high confidence in government direction,
transparency and sector alignment. Vendors and buyers continue to report concerns about
unclear funding frameworks, reactive policy and insufficient consultation with private RTOs.

Q1. How confident are you in the Federal Government’s ability to set effective policy
for the VET sector?

Q2. Do you believe the recent reforms (e.g. Strengthening Quality & Integrity in VET
Bill) will improve sector quality long-term?

Q3. How would you rate the transparency of current ASQA compliance enforcement?

Q4. Do you feel adequately informed about changes in government-funded training
programs (e.g. Smart & Skilled, Skills First)?

Q5. Do you believe state and federal policies are aligned enough to ensure stable
sector planning?

Q6. Do you believe the government consults adequately with private RTOs when
developing new VET policy?

Q7. Have you adopted online delivery?

Results:

• 35% reported delivering training fully online.
• 30% use a hybrid model (approximately 50/50 split).
• 20% have only minimally adopted online delivery (under 25% of courses).
• 15% have not adopted online delivery at all.

These figures confirm a strong digital trend, with over 85% of RTOs incorporating some level
of online delivery. Buyers are increasingly drawn to scalable models with strong LMS
integration, while vendors with limited digital capability may face valuation pressure.

Q8. Do you feel fully prepared for the new Standards (2025)?

• 25% consider themselves fully prepared.
• 40% feel somewhat prepared and are actively working toward compliance.
• 35% do not feel prepared, highlighting a serious transition gap.

These results highlight a clear need for increased transition support, training and internal
systems review across the RTO sector.

Q9. Are you seeing increased demand for tech-focused courses?

Demand for tech-related training (e.g., cyber, AI, data analytics) has grown from 50% in 2023
to 70% in 2025. Buyers are actively targeting RTOs with up-to-date tech content.

Q10. Are you confident in funding continuity?

Only 35% feel confident about consistent funding, a critical factor for long-term planning and
stability.

Q11. Have you explored AI integration?

• 10% are actively using AI tools (e.g., automated assessments, chatbots, data-driven
  learner insights).
• 15% have explored AI possibilities but are yet to implement.
• 75% have not explored AI at all.

This highlights a significant lag in AI readiness within the RTO sector. From a market
standpoint, early adopters are well-positioned to differentiate on efficiency and learner
experience.

Q13. Do you plan to expand course offerings in 2025?

• 40% plan to launch new qualifications in response to emerging markets (e.g. aged
  care, cyber security, business transformation).
• 25% are refreshing courses to maintain compliance and appeal.
• 35% have no expansion plans, citing resource limitations or strategic rationale.

This result suggests a majority of RTOs are in a growth or adaptation phase. Buyers will be
drawn to those with fresh, in-demand content ready to scale.

Sellers not expanding should position their existing programs as refined and profitable to
defend valuation.

Q14. Are you actively pursuing government funding opportunities?

• 30% are actively targeting multiple streams and optimising their eligibility.
• 20% apply occasionally, often when directly notified or partnered.
• 25% rely only on existing, legacy-funded contracts.
• 25% are not pursuing any government funding at all.

Sellers may want to prepare funding strategy documentation to reduce buyer concerns.

Q15. Have you experienced increased compliance workload in the past 12 months?

A steep 80% increase reported by RTOs mirrors the transition to 2025 standards and policy
reform.

Q16. Do you plan to merge, acquire or exit within the next 2 years?

• 25% are preparing for a full or partial exit via sale.
• 20% are proactively seeking acquisition targets for growth.
• 15% are exploring merger or joint venture arrangements.
• 40% currently have no active plans but remain open to future opportunities

Lastly, we looked at readiness of vendors and the results were not an uncommon revelation.
It does surprise me that RTO vendors do not understand the value of their company nor the
levers to change this.

Q17. Do you know how the value of your RTO is calculated?

Q18. Do you believe your RTO is currently sale-ready?

Q19. What contributes most to RTO value?

The truth of the matter is the profit margin is by far the most relevant and the highest
determinant of value for a buyer.

Q20. Have you benchmarked your RTO against similar providers?

Q21. Would you accept a lower valuation for a clean exit?

There are two tradables, time and money and neither the buyer or seller can own both.
Knowing what is important to you will assist in your decision making.

CONCLUSION:

The Australian RTO sector in 2025 is walking a fine line between pressure and possibility.
Compliance demands are up, government trust is down and many owners are feeling the
squeeze. Despite the negative noise – shifting policies, tighter audits and the usual funding
frustrations, the RTO sector remains one of Australia’s most resilient and future-focused
industries.

But look deeper and the opportunities are just as clear. Online models are outperforming,
regional and funded streams are attracting premiums and buyers remain actively engaged in
the right sectors. In fact, our buyer enquiry rate has not dropped in the last 6 months
however, buyers are more knowledgeable.

If there’s a message underneath it all, it’s this: the RTO space is maturing. Strategy now
matters more than size. Systems beat sentiment. And those who plan, who genuinely
understand their value, their risk and their position will be the ones shaping the future of
vocational education in this country.

If you take one thing from this report, let it be this: you don’t need to guess. Whether you’re
expanding, streamlining or quietly wondering what your RTO might be worth, this market
rewards those who plan early and plan well.

A valuation isn’t about selling, it’s about knowing. Knowing what levers increase value.
Knowing what buyers look for and knowing how to position your business to thrive – sale or
no sale.

Start with a 15-minute valuation snapshot. It’s free, no pressure and tailored to your RTO’s
size, model and compliance posture. And it might just shift your strategy for the better.

Take the insights. Share the report. Start the conversation. We’re here if you want to know
where you stand.

Book a Valuation

Book your complimentary 15-minute consultation with Infinity Business Brokers.

Not much to lose but a lot to gain.

Selling a Registered Training Organisation (RTO) is a major decision that requires careful planning, market knowledge and a solid strategy. Unlike selling a traditional business, RTO transactions come with unique challenges, including regulatory compliance, financial structuring and ensuring the right buyer fit. Many sellers make the mistake of assuming a high revenue guarantees a high sale price—but that is rarely the case.

We have helped hundreds of RTO owners successfully exit their businesses with maximal value and minimal stress. In this guide, we break down the key steps to sell your RTO the right way, avoid common pitfalls and ensure a smooth, profitable transaction.

1. Know what your RTO is REALLY worth

Your RTO is not just a collection of student enrolments and training packages—it’s a regulated entity with a compliance history, reputation and financial track record. A valuation isn’t about slapping on a random number; it requires:

• Revenue and profitability analysis (not just total sales but margins and growth potential).
• ASQA compliance record (non-compliance can kill a deal).
• Market demand for your scope (a generalist RTO is worth less than a niche provider with strong industry links).

A recent case involved an RTO owner who expected $2 million based on past revenue. After a deep dive, we uncovered ASQA concerns and a weak profit structure with lower than expected maintainable earnings. This reduced real buyer interest to $1.4 million. Had they prepared earlier, they could have resolved these issues and secured a higher price.

2. Presentation is Everything

If your financials are messy, compliance is unclear or marketing is weak, buyers will hesitate. Before listing, we audit your records, clean up financials and ensure marketing materials are professional, clear and persuasive.

Think of it like selling a house—you wouldn’t show an open home without cleaning first. The same applies to selling your RTO.

3. Confidentiality is a Non-Negotiable

We never advertise an RTO with details that identify it. Competitors, staff and regulators watching the market could cause serious problems if your sale isn’t handled discreetly. That’s why we use confidential listings, release details only to pre-qualified buyers and manage NDAs professionally.

4. The right buyer matters more than the highest offer

We once had an RTO on the market with multiple offers. The highest bidder looked great on paper but had no real industry experience. DTET (QLD) scrutiny would have delayed settlement and potentially cancelled registration. Instead, the seller went with a slightly lower offer from an experienced buyer, leading to a faster, smoother and safer sale.

The focus should be on 4 key points.

1. Achieving the highest price
2. The transaction taking the least amount of time
3. The best terms for our vendor.
4. The safest exit

5. Negotiation and deal structuring are key

Selling an RTO isn’t like selling a café—due diligence, financial structuring and risk assessment are critical. Your RTO must be positioned in a way allowing flexibility of deal structure. It is crucial from the start you are aware of the different deal parameters, what is off the table, what can be negotiated and how it affects value and risk.

6. Marketing your RTO effectively

The structured marketing approach must designed to attract serious buyers while maintaining confidentiality. The strategy includes:

• Targeted advertising on multiple and major business sale platforms.
• Direct outreach to a buyer database
• Professional marketing materials that highlight your RTO’s strengths.
• Strict confidentiality protocols to protect business integrity.
• Specific advertising for RTOs

7. Managing Buyer Due Diligence

Once a buyer is engaged, they will conduct detailed due diligence, reviewing financials, student records, compliance history and contracts.

Sellers must be fully prepared for this stage, as missing information can derail a sale.

Your broker should proactively manage due diligence, ensuring a structured and transparent process that keeps the sale on track.

8. Legal and financial preparation and settlement

There are unique steps in a RTO transaction not seen in other share sales. As there are other (Federal and State) regulatory bodies in play, there is a distinct order or process in successfully navigating this path. Unfortunately, most solicitors may only do 1 or 2 RTO transactions and this means less familiarity with the processes that ensure all parties are satisfied.

A well-prepared seller has a clear legal and financial framework in place before listing the business. This includes:

• Ensuring contracts with trainers and staff are secure and ASQA-compliant.
• Reviewing lease agreements and financial commitments.
• Identifying potential tax implications of the sale.

A strong legal and financial structure removes obstacles that can slow down negotiations or result in deal collapse.

A successful RTO sale doesn’t end at settlement. The transition period is critical to ensure student continuity, trainer retention and operational stability. The approach includes:

• Structured handover plans with clear responsibilities.
• Support for new owners to meet ASQA requirements.
• Post-sale advisory to ensure both parties uphold contractual obligations.

9. Final review and Post-sale support

Even after the sale is completed, Infinity Business Brokers remains involved. We conduct a final check-in to confirm that:

• Settlement conditions are met.
• The buyer is successfully integrated into the RTO.
• Any outstanding contractual obligations are fulfilled.

A well-managed post-sale transition prevents disputes and ensures a clean exit for the seller.

Conclusion

Selling your RTO isn’t just about finding a buyer—it’s about maximising value, managing risk and ensuring a smooth transition. With the right approach, you can secure the best possible deal while maintaining compliance and protecting your business reputation.

At Infinity Business Brokers, we guide RTO sellers every step of the way. If you’re considering selling, let’s develop a tailored exit strategy that ensures you walk away with confidence, financial security and a deal that works for you.

Thinking of selling? Contact us today to start the conversation.

Last week, I had the pleasure of joining Joanna Oakey on The Deal Room Podcast to dive into the dynamic world of Registered Training Organisations (RTOs).

We explored the evolving landscape for RTOs and training organisations across Australia, touching on the legislative and economic challenges shaped by the pandemic. Plus, we uncovered key opportunities for buyers and sellers to watch out for in this ever-changing market.

Tune in for insights you won’t want to miss! 🎧

#TheDealRoomPodcast #RTOs #BusinessBroker #InfinityBusinessBrokers

As Australia’s leading RTO business broker and industry expert, i’ve had the privilege of witnessing the evolution of the Registered Training Organisation (RTO) sector firsthand. The changes over the last 25 years pale in comparison to the recent changes. With over 140 RTO transactions under my belt and extensive experience as both an RTO owner and CEO, I have needed to keep a close eye on the basket as I am “all-in” on the RTO sector.

As we start 2025, significant changes are on the horizon will reshape the landscape of vocational education and training in Australia. Let’s dive into what the future holds for RTOs in 2025.

The changing face of RTO Standards

The year 2025 marks a pivotal moment for RTOs across Australia with the implementation of the revised Standards for Registered Training Organisations. These new standards, set to come into full regulatory effect from 1 July 2025, aim to enhance clarity, strengthen quality outcomes, and foster innovation in training delivery. This is the largest change since the standards were adopted in 2015.

Below I have made some predictions – some simple and some a little more out there…

Prediction 1: Enhanced industry engagement will become paramount

One of the most significant changes we’ll see is a stronger emphasis on industry engagement. RTOs will need to provide substantial evidence of ongoing collaboration with industry partners, moving beyond one-off consultations to systematic engagement processes.

This slight shift will ensure training remains relevant and up-to-date with current industry practices. This change will bridge the gap between education and employment, enhancing graduate employability and contributing to workforce development.

Prediction 2: Digital literacy will become a core focus

The 2025 standards will place a significant emphasis on digital capability, reflecting the increasing reliance on technology in both education and the workplace. RTOs will be required to assess the digital capability of learners, similar to how they currently assess language, literacy, and numeracy (LLN) skills. This shift acknowledges the critical role of digital skills in modern workplaces and the need for RTOs to prepare students for a digitally-driven future.

Prediction 3: The Emergence of “Hybrid RTOs”

2025 will see the rise of “Hybrid RTOs” that blur the lines between traditional vocational education providers and technology companies. These new entities will:

• Develop proprietary edtech platforms that combine learning management, student support, and industry engagement
• Offer a mix of accredited training and non-accredited professional development
• Leverage big data and predictive analytics to align course offerings with future industry needs

Post COVID-19 there has been an acceleration in the adoption of online and blended learning models, and this trend will continue to shape the RTO landscape in 2025. The new standards are expected to reflect this shift, encouraging RTOs to leverage digital tools and platforms to enhance accessibility, flexibility, and effectiveness of their training programs

This shift will lead to increased competition in the sector and may result in consolidation as smaller RTOs struggle to keep up with the technological arms race.

Prediction 4: The Rise of micro-credentials will revolutionise course offerings

In 2025, we’ll see a seismic shift in how RTOs structure their course offerings. Micro-credentials will become the dominant form of vocational education, with traditional qualifications being broken down into smaller, more focused units of competency. This change will be driven by:

• Industry demand for more agile and specific skill sets
• Learners seeking faster routes to employment or career advancement
• The need for continuous upskilling in rapidly evolving industries

This shift will require significant investment in curriculum development and new delivery platforms.

Prediction 5: AI-Powered personalised learning will become the norm

Artificial Intelligence will transform the learning experience in RTOs. We’ll see:

• AI-driven adaptive learning systems that adjust content difficulty and pacing based on individual student performance
• Personalised study plans generated by machine learning algorithms
• Virtual AI tutors available 24/7 to answer student queries

This level of personalisation will dramatically improve student outcomes and completion rates. However, it will also require RTOs to make substantial investments in technology infrastructure and data analytics capabilities.

These predictions represent a dramatic transformation of the RTO sector in 2025. While they may seem extreme, the rapid pace of technological advancement and changing societal expectations make such shifts entirely possible. RTOs who anticipate and prepare for these changes will be well-positioned to thrive in this new landscape, while those who resist change may find themselves obsolete.

The changes coming in 2025 represent a significant step forward for the RTO sector in Australia. As we approach this pivotal year, RTOs must embrace these changes as opportunities for growth and improvement. Those that do will not only meet regulatory requirements but will also position themselves as leaders in delivering high-quality, industry-relevant education and training programs. The future of RTOs in Australia is bright, and I’m excited to see how these changes will shape our industry in the years to come. As always, I’m here to support RTOs through these transitions, whether through consultancy, brokerage services, or sharing industry insights. Remember, in the world of RTOs, adaptability and innovation are key. Let’s embrace these changes and work together to build a stronger, more responsive vocational education sector for Australia.

Travis Latter

The RTO Specialist.

As Australia’s leading RTO business broker, I’ve closely analysed the recent developments surrounding the blocking of the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 by the Greens and Coalition.

This decision has significant implications for the sale and valuation of CRICOS RTOs in Australia.

The background

The proposed bill aimed to give the Minister power to set caps on international student enrolments and introduce other measures to enhance the quality and integrity of Australia’s international education sector

Its blocking means that the current regulatory framework, including Ministerial Direction 107, remains in place

Implications for CRICOS RTO Sales

Pros

1. Regulatory Stability
   • The blocking of the bill maintains the current regulatory environment, providing a degree of certainty for RTO operators and potential buyers.
   • Existing RTOs can continue operating under familiar rules, which may be seen as a positive by potential buyers wary of sudden regulatory changes.
2. Potential for Growth
   • Without the proposed caps, there’s theoretically no upper limit on international student enrolments beyond an RTO’s own capacity and CRICOS registration limits.
   • This could make CRICOS RTOs more attractive to buyers looking for growth opportunities in the international education market.
3. Diverse Market Opportunities
   • The absence of government-imposed caps allows RTOs to respond more flexibly to market demands and opportunities across various fields of study.
   • This flexibility could be valuable for buyers looking to acquire RTOs with diverse course offerings or those in niche markets.
4. Preserved Value for High-Performing RTOs
   • Well-established RTOs with strong track records may maintain their market value, as their ability to attract international students isn’t artificially constrained by government-imposed limits.

Cons

1. Ongoing Uncertainty
   • While the bill’s blocking provides short-term certainty, it also signals ongoing political debate about international education regulation
   • This uncertainty could make some potential buyers hesitant, potentially impacting RTO valuations.
2. Potential for Future Stricter Regulations
   • The government’s concerns about the sector haven’t disappeared. There’s a risk that future attempts at regulation could be more stringent, potentially affecting long-term RTO valuations.
3. Market Saturation Risks
   • Without caps, there’s a risk of market oversaturation in popular courses or locations, which could lead to increased competition and potentially lower profitability for some RTOs.
4. Quality Concerns
   • The bill aimed to address quality issues in the sector. Its blocking might perpetuate concerns about the quality of some providers, potentially affecting the reputation of the entire sector.
5. Continued Reliance on Ministerial Direction 107
   • This direction, which prioritises visa applications from “lower risk” institutions, may continue to disadvantage smaller or newer RTOs, potentially impacting their market value.

Impact on RTO Valuations

1. Short-Term Stability
   • In the immediate term, we may see a stabilisation or slight increase in CRICOS RTO valuations, as the threat of enrolment caps has been removed.
2. Long-Term Uncertainty
   • However, the long-term outlook remains uncertain. Potential buyers should be aware that future regulatory changes could significantly impact RTO operations and profitability.
3. Differentiation Based on Quality
   • High-quality RTOs with strong compliance records and student outcomes may see increased valuations, as they’re better positioned to weather potential future regulatory changes.
4. Location-Based Valuation Differences
   • RTOs in major cities might maintain higher valuations due to their popularity among international students. However, this could change if future policies aim to redistribute students to regional areas.
5. Course Offering Impacts
   • RTOs offering courses in high-demand, skills-shortage areas may see increased valuations, as they align with Australia’s broader economic and migration objectives.

Considerations for Buyers and Sellers

For Buyers:

1. Due Diligence: Conduct thorough due diligence, focusing on the RTO’s compliance history, student outcomes, and financial stability.
2. Diversification: Consider RTOs with diverse course offerings and student source countries to mitigate risks associated with potential future regulations.
3. Quality Focus: Prioritise RTOs with strong quality assurance mechanisms and positive student outcomes, as these are likely to be more resilient to future regulatory changes.
4. Location Strategy: Evaluate the pros and cons of RTOs in different locations, considering potential future policies aimed at distributing international students more evenly across Australia.
5. Growth Potential: Assess the RTO’s capacity for growth within its current CRICOS registration limits and facilities.

For Sellers:

1. Timing: Consider the current political climate and potential future regulatory changes when deciding on the timing of a sale.
2. Quality Documentation: Prepare comprehensive documentation demonstrating the RTO’s quality measures, compliance history, and student outcomes to support valuation.
3. Diversification Showcase: Highlight any diversification in course offerings, student source countries, or delivery modes as a strength of the RTO.
4. Growth Narrative: Develop a clear growth strategy that potential buyers can implement, focusing on sustainable growth within current regulatory frameworks.
5. Compliance Readiness: Ensure the RTO is well-positioned to adapt to potential future regulatory changes, as this can be a selling point for forward-thinking buyers.

The blocking of the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 has created a complex landscape for CRICOS RTO sales. While it removes the immediate threat of enrolment caps, it also signals ongoing uncertainty in the regulatory environment.

For both buyers and sellers, the key to navigating this landscape is to focus on quality, compliance, and adaptability. RTOs that can demonstrate these attributes are likely to maintain their value and attractiveness in the market, regardless of potential future regulatory changes.

As Australia’s leading RTO business broker, I advise all parties involved in RTO transactions to stay informed about ongoing policy discussions, conduct thorough due diligence, and consider both the short-term opportunities and long-term risks in their decision-making processes.

We can expect ongoing discussions and potential new legislative attempts to address concerns about student welfare, education quality, and the broader impacts of international education on Australian society and economy.

RTOs that proactively embrace quality improvements, innovative teaching methods, and strong student support systems will be best positioned to thrive in this evolving environment.

Additionally, we may see increased emphasis on aligning course offerings with Australia’s skills needs and a push for greater distribution of international students across regional areas.

The international education sector remains a crucial part of Australia’s economy and global engagement strategy. Despite current uncertainties, well-managed, high-quality RTOs are likely to continue playing a vital role in this landscape, presenting valuable opportunities for astute buyers and sellers alike.

If you want to discuss how these changes could impact your RTO or your purchase or even to explore strategic opportunities in this dynamic market, I’d be happy to assist. Let’s schedule a meeting to review your unique position and chart a path forward. Contact me today to start the conversation.

The Impact of Blocking the International Student Limits and Integrity Bill: A Detailed Analysis for CRICOS RTOs

The proposed Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024 sought to cap international student enrolments at 270,000 per year starting in 2025. The rationale was to alleviate strain on housing, infrastructure, and migration pathways. However, the bill faced significant opposition and was ultimately blocked by a coalition of the Greens and the Liberal-National Coalition in the Senate.

This outcome has wide-ranging implications for Registered Training Organisations (RTOs) offering CRICOS (Commonwealth Register of Institutions and Courses for Overseas Students) courses. Below is a detailed analysis of the opportunities and challenges resulting from this legislative development, tailored for buyers and sellers in the RTO market.

Pros of Blocking the Bill

1. Market Stability
   • Predictable Enrolment Capacity: The cap would have created a hard ceiling on the number of international students, leading to uncertainty for providers reliant on overseas enrolments. By blocking the bill, RTOs can continue their current recruitment levels without immediate regulatory interference.
   • Revenue Consistency: For RTOs that derive a significant portion of their revenue from international enrolments, the decision ensures the continuation of a vital income stream.
2. Economic Contributions
   • International education remains a $50 billion sector for Australia, with substantial indirect benefits to local economies, particularly in housing, retail, and tourism.
   • RTOs catering to niche international markets, such as aviation or healthcare, can sustain their contributions to the skilled migration pipeline without arbitrary limits.
3. Competitive Positioning
   • Without caps, institutions can differentiate themselves based on quality, course offerings, and location, rather than being constrained by numerical quotas.
   • The flexibility to scale enrolments gives a competitive edge to RTOs aiming to attract high-demand students, such as those from South Asia and Southeast Asia.
4. Investment Appeal
   • For buyers in the RTO market, the blocked cap mitigates the perceived risk of regulatory restrictions, potentially stabilising valuations.
   • Sellers can position their RTOs more attractively, emphasising growth potential without an enforced cap on enrolments.

Cons of Blocking the Bill

1. Regulatory Uncertainty
   • Future Policy Risks: The government’s intent to address housing and infrastructure pressures remains unresolved. This suggests the possibility of future regulatory measures that may indirectly impact international enrolments, such as stricter visa conditions or increased compliance costs.
   • Ad hoc Adjustments: Without a clear framework, RTOs may need to adapt reactively to evolving policy directions, which could lead to operational inefficiencies.
2. Strain on Resources
   • Sector Reputation: Critics of the bill argued that unregulated growth in international student numbers might compromise quality standards. Instances of overcrowded classrooms or insufficient resources could damage Australia’s reputation as a premium education destination.
   • Housing and Infrastructure Issues: International students often face challenges in securing affordable housing. Continued enrolment growth without addressing these issues may indirectly impact student satisfaction and retention rates.
3. Market Saturation Risks
   • With no cap, some regions or course types could experience oversupply. This could lead to increased competition among providers, potentially driving down tuition fees and margins.
   • Smaller RTOs may struggle to compete against larger, well-resourced institutions that can absorb more students and offer superior facilities.
4. Compliance Pressures
   • The blocked bill also included measures to tighten oversight of education agents and enforce higher compliance standards. While the cap was rejected, RTOs may still face heightened scrutiny in these areas, which could result in increased administrative and operational costs.

Strategic Considerations for CRICOS RTO Buyers and Sellers

For Buyers

• Valuation Insight: With the immediate threat of enrolment caps removed, the value of CRICOS RTOs may stabilise or increase. However, due diligence should factor in potential future regulatory shifts.
• Diversification: Assess whether the RTO is overly reliant on a single student demographic or course type. A diversified portfolio reduces vulnerability to sudden market or regulatory changes.
• Operational Efficiency: Review the RTO’s ability to maintain compliance and quality while scaling enrolments.

For Sellers

• Positioning: Highlight opportunities for growth, particularly in high-demand sectors or regions with strong international appeal.
• Transparency: Provide financial models that account for potential policy risks, demonstrating preparedness and resilience.
• Brand Equity: Focus on the RTO’s reputation for quality and compliance as a differentiator in a competitive market.

Conclusion

The blocking of the international student cap bill presents a mixed landscape for CRICOS RTOs. On one hand, the decision ensures continuity and preserves a significant revenue stream. On the other, it leaves unresolved policy challenges that may resurface in the form of alternative regulatory measures.

For buyers and sellers, the key to navigating this environment lies in strategic foresight:

• Buyers should focus on diversification, due diligence, and alignment with emerging market trends.
• Sellers should leverage the current regulatory status quo to highlight growth potential while addressing prospective risks transparently.

As the market evolves, stakeholders must remain proactive, continuously adapting to the delicate interplay of political, economic, and operational factors shaping Australia’s international education sector.