Cost of Starting an RTO

Cost of Starting an RTO

Starting a Registered Training Organisation (RTO) requires careful financial planning and a solid understanding of the regulatory environment. This guide breaks down the essential costs you’ll encounter on your journey to becoming an RTO owner.

Initial ASQA Registration Costs

The Australian Skills Quality Authority (ASQA) plays a critical role in the RTO registration process. Aspiring RTO owners must budget for two key ASQA fees:

  • Lodgement Fee: This $600 fee comes due right after you submit your application.
  • Assessment Fee: ASQA bills you $8,000 for this fee once it confirms your application is complete.

These fees are your first step toward compliance and getting your RTO off the ground. Learn more about ASQA Fees

The Cost of Financial Viability Assessment

The Financial Viability Risk Assessment (FVRA) is crucial, with costs ranging from $1,000 to $5,000. This assessment ensures your RTO has a stable financial foundation, which is essential for long-term success.

Breaking Down Additional Startup Costs

  • Company Registration: Expect to pay around $500 to legally set up your Pty Ltd company.
  • Operational Costs: Budgeting for the first year’s operational costs is crucial. Staff salaries can range from $60,000 to $100,000 for a Training Coordinator, while general administration expenses may reach $10,000 to $30,000.
  • Training Resources: Full qualifications materials cost between $2,000 and $9,000, so plan accordingly.
  • Facilities and Equipment: The cost for training rooms and necessary equipment can vary widely. It’s vital to tailor your financial planning to these needs.

Total Estimated Capital Investment

Considering all these factors, we estimate a total capital investment of up to $50,000 for an existing business and $100,000 for a new business in the first year of operations. It’s important to note that these figures are estimates and serve as a guideline. The actual costs may vary based on specific circumstances and requirements.

Simplify Your RTO’s Financial Planning with Vivacity

Vivacity’s KickStart Package is an excellent resource for managing the financial and regulatory aspects of starting your RTO. It provides bespoke guidance to ensure you’re well-prepared for these expenses.

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