Document ID: chunk:federal_register_of_legislation:F2021C01014:clause:1_4:p1
Version: federal_register_of_legislation:F2021C01014
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 1/3)
Character Range: 4805–7884

4  Definitions
  In this instrument:
Act means the National Vocational Education and Training Regulator Act 2011.
Financially viable means the ability of an organisation to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow growth while delivering quality training and assessment services and outcomes.
Financial viability risk means the assessed financial performance, operations, and capacity of an organisation as an ongoing concern to deliver quality training and assessment services and outcomes for the duration of its registration, and the potential of its losing this capacity.
 (2) The requirements of this legislative instrument apply to:
             (a) all organisations seeking registration under the Act and
             (b) all training organisations registered under the Act.

NVR registered training organisation has the same meaning as in the Act.
National VET Regulator has the same meaning as in the Act.
An independent qualified auditor is:
            a)       the Auditor-General of a State, of the Australian Capital Territory or of the Northern Territory; or
            b)      a person registered as a company auditor or a public accountant under a law in force in a State, the Australian Capital Territory or the Northern Territory; or
            c)       a member of the Institute of Chartered Accountants in Australia, or of the Australian Society of Certified Practising Accountants; or
            d)      a person approved by the Minister in writing as a qualified auditor for the purposes of the Higher Education Support Act 2003; and
            e)      a person independent from the entity it is auditing.
      Note: For the purpose of this legislative instrument, a qualified auditor will be considered to be independent from the entity it is auditing if the qualified auditor meets the independence requirements specified in Part 2M.4, Division 3, of the Corporations Act 2001 as though the qualified auditor is an individual qualified auditor or an audit company and the body corporate seeking approval as a VET provider is the audited body under that Act.

               Part 2  Context and intent of these requirements

5 Context
(1)    The Act in Section 158 requires the National VET Regulator to make the requirements relating to the financial viability of NVR registered training organisations. The requirements are to be made by legislative instrument and are to be known as the "Financial Viability Risk Assessment Requirements".
(2)    The legislative instrument applies to NVR registered training organisations. Section 24 makes it a condition of registration that an NVR registered training organisation must satisfy the Financial Viability Risk Assessment Requirements.

6 Intent
 (1) The National VET Regulator requires an NVR registered training organisation to demonstrate its financial viability at any point in time, upon request.
 (2) The assessment of an organisation's financial viability risk is directed at evaluating the likelihood of its business continuity,