Buying an RTO? Here’s the Ultimate Due Diligence Checklist You Can’t Afford to Miss Leave a comment

Thinking about buying an RTO? Before you sign the dotted line, make sure you’re not buying into a compliance nightmare.

Buying a Registered Training Organisation (RTO) can be a smart investment — if done right. But with Australia’s strict regulatory environment, it’s not just about getting a good price. It’s about protecting yourself from hidden risks, lost records, or worse — non-compliance with ASQA that could shut you down.

Here’s a simple, practical due diligence checklist every RTO buyer should follow (and yes, it includes all the things most people forget — like ASQA’s 90-day notification rule!).

Why Due Diligence Matters When Buying an RTO

Due diligence is like your pre-purchase inspection — for training providers. It’s your way of making sure the RTO:

• Is compliant with ASQA’s standards
• Has no hidden legal or financial issues
• Has quality training and assessment resources
• Is ready to hand over the reins — clean and compliant

The Simple RTO Due Diligence Checklist (For Non-CRICOS RTOs)

Here’s what you must check before taking over:

1. Compliance and Registration

• ASQA notified 90 days in advance of ownership change
• Completed Self-Assessment Tool ready for ASQA review
• Scope of registration is current (check https://training.gov.au/)
• No current sanctions, suspensions or conditions from ASQA
• All third-party agreements are compliant

2. Training & Assessment

• Are Trainers & Assessors properly qualified? (Check against the Credential Policy)
• Do they have supervision arrangements if “working towards” a TAE?
• TAS (Training & Assessment Strategies) are updated and contextualised
• Validation and industry consultation records are available
• Training resources are mapped and aligned with units of competency

3. Student Records & Support

• Student files are complete: USI, ID, enrolment, assessment
• Student support services are documented
• Complaints and appeals are tracked and resolved
• AVETMISS data submitted on time
• Student surveys are collected and acted upon

4. Certification & Records

• AQF certificates issued correctly within 30 days
• Records of certifications issued are retained
• Assessment evidence is stored securely (min 2 years)
• All admin systems (SMS, LMS) are active and auditable

5. Financials & Governance

• Financial statements (3 years) and budgets available
• Passes the Financial Viability Risk Assessment
• Public liability insurance is current
• CEO’s annual declaration submitted
• Lease agreement and premises documentation secured

Bonus Tip: Ask for These Documents Too

✔️ Latest ASQA audit report
✔️ Internal audit results
✔️ Trainer PD logs
✔️ Marketing material (check for non-compliant claims)
✔️ Website NRT logo compliance

Want It Done for You?

We’ve created a free fillable checklist in  Word formats — complete with built-in checkboxes and pre-filled tasks to keep you on track.

👉 Download the RTO Due Diligence Checklist

Need help with the ASQA submission or want an expert to audit the RTO for you?

📞 Talk to our compliance team today — we make RTO acquisition stress-free and fully compliant.

Final Word

Buying an RTO doesn’t have to be risky — if you know what to look for.

Use this checklist as your roadmap to make sure the business you’re buying is worth the investment and ready for a smooth transition.

Need a second opinion before you buy an RTO?
Chat with us — we audit, guide, and protect buyers like you every day.

Why VET Resources?

When it comes to RTO compliance, audit preparation, and resource development, you need more than checklists — you need trusted tools backed by VET experts.

Here’s why VET Resources is your go-to solution:

✅ ASQA-aligned tools – All our templates meet current and future RTO Standards (2025 ready!)
✅ Customisable documents – TAS, validation tools, policies, procedures, checklists and more
✅ Audit-proof systems – Developed by experienced RTO consultants
✅ Save time – Focus on quality delivery while we handle the paperwork
✅ Expert support – Get advice, not just documents

Whether you’re buying an RTO, starting a new one, or scaling your current operation — we help you stay compliant, confident, and competitive.

👉 Explore our resources today at vetresources.com.au
 Or email us at info@vetresources.com.au to book a free compliance health check.