It can’t be sugar-coated; 2025 has been a tough year for the independent tertiary education sector. Apologies that this is lengthier than usual…
Perhaps the most significant ‘event’ of the year was the lead up to and implementation of the 2025 Outcome Standards for Registered Training Organisations (RTOs). This has been described by some as the most significant reset of the national skills regulatory system in a decade. Certainly, the new enforceable Credentials Policy continues to cause significant challenges for RTOs in a number of areas. ITECA has continued to recognise that implementation issues are a focus for the Australian Skills Quality Authority (ASQA) and our working relationship on matters where clarification is required remains positive and open. Issues relating to policy, however, are outside ASQA’s purview, and remain the responsibility of the Department of Employment and Workplace Relations; this is where the biggest focus currently lies.
Speaking of ASQA, dialogue throughout the year has been robust but always reasonable and fair. To ASQA’s credit, their experts have always made themselves available to ITECA Members, noting the importance for RTOs to demonstrate the steps they are taking to actively improve practice and governance throughout their organisation.
This is a regulatory approach that ITECA endorses and in the spirit of seeking consistency, ITECA has also sought wider use of Statements of Regulatory Expectations as issued periodically by the higher education regulator (TEQSA).
Lastly on skills regulation, ITECA has endorsed the stance of ASQA and other agencies in investigating and taking action against non-genuine providers. We cannot support such providers in our system as their legacy damages the system and all quality operators.
More broadly on skills, there have been some significant highlights over 2025. Too many to name. As we all know, the independent supports the vast majority of student enrolments (90.8% in 2024), the majority across all AQF levels, and in most critical skill areas too, as well as enjoying the highest employer satisfaction rates. So, ITECA is not too concerned if some want to try and talk down the independent sector.
At ITECA we continue to highlight our part in the skills ecosystem. We recognise quality skills training. In 2025 we have had the good fortune to see some of the excellent work being undertaken at Community Education providers, Enterprise RTOs as well as in the public system. Pursuing opportunities for collaboration will result in better outcomes for students and employers. Fragmentation of the system by RTO type ensures that RTO are discouraged from collaborating and makes us all poorer. Particularly students and business, and especially when it comes to how government’s invest taxpayer money in skills training.
In 2025, the higher education was a year that had a policy focus very much honed on public institutions. The implementation of the Universities Accord kicked off, with almost all aspects focused on public institutions, other than some regulatory measures that will ensure delivery at independent providers is made harder and less accessible. The Federal Government also legislated the Australian Tertiary Education Commission, which will initially have little to do with the independent sector, focusing for the most part on funding for public institutions. Of course, the Government’s target of at least 80% of the working age population holding a tertiary qualification by 2050 will be unattainable unless the independent tertiary sector is fully embraced in this goal. So much is yet to be done in this respect.
ITECA will continue to provide additional input to the ATEC’s considerable body of work as it develops.
International education was described by a colleague as the policy basket case of 2025. Maybe. Maybe not. It is true that 2025 has seen a series of disjointed initiatives likely to result in outcomes that are at odds with one another. But it also likely true that the international education model of the past 15-20 years is changing both in Australia and globally and we need to be part of that change.
While ITECA is pleased to have played a significant role in ensuring there were some sensible amendments that lessened the damage of legislative changes passed in November, it remains ITECA’s view these changes will not deliver on their objective. That is, they will not ensure greater integrity or quality in international education.
The refusal to engage and consult sector peak bodies on proposed changes and the implications they will have is a continued abuse of proper process and another failure in legislative transparency. Policy design is undertaken in an ivory tower means that real-world implications are less than an afterthought.
But a final note. The year was summed up when, on 16 December, the Victorian Government notified contracted RTOs of outcomes for 2026. While the timing might be bad enough for business, the result has meant a significant number of contracted RTOs not being offered any places to support students in 2026 and many of those that were offered a contract, being offered so few places that their viability or the relevant course is now actively in question. This is likely to lead to job cuts over early January 2026 and as some of these RTOs are the only provider to offer these courses in the State, Victoria will further embed skills shortages for years to come. That, combined with damage to business confidence that will result, is a recipe other jurisdiction’s must avoid.
Ivory towers are not a good place to be.
Felix
Felix Pirie
ITECA Chief Executive Officer
If you have any questions regarding the above, please contact the ITECA team at [email protected].