Document ID: chunk:federal_register_of_legislation:F2023C00945:reg:23
Version: federal_register_of_legislation:F2023C00945
Segment Type: reg
Provision Reference: reg 23
Character Range: 27821–29400

23  Financial performance
 (1) The provider must be able to pay its debts as and when they are due and payable.
 (2) The provider must be financially viable.
 (3) Each of the following is an indicator that a provider is financially viable:
 (a) the provider generates sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while delivering quality training, assessment services and outcomes;
 (b) the provider's total assets exceed the provider's total liabilities (the provider has a positive equity position), and there is no evidence to suggest that this might change;
 (c) if the provider is not a charitable or not‑for‑profit organisation registered with the Australian Charities and Not‑for‑profits Commission, and has been operating for 3 years or more—the provider has operated at a profit for at least 2 of the 3 most recent financial years for the provider;
 (d) if the provider has at least 100 enrolments in courses leading to awards of qualifications in the Australian Qualifications Framework—at least 20% of the provider's revenue for the previous financial year came from sources other than payments that gave rise to HELP debts or VETSL debts;
 (e) the provider has a net positive cash position from operating activities (determined in accordance with the accounting standards);
 (f) the provider is not providing guarantees or loans that could have a material effect on the provider's finances;
 (g) the provider is not providing its assets as security other than under a commercial loan arrangement with an ADI.