Sale or transfer of business

An RTO’s registration and scope of registration are not transferable. Therefore, if your RTO wants to sell or otherwise transfer its business to another person or corporation, you cannot simply transfer the existing registration to the new owner.

What is the status of the new owner?

To sell or transfer the business, you must change the ownership to another ‘legal person’. (Essentially, a legal person is defined by the Australian Securities and Investments Commission Act 1989 as a person, company or other body with individual legal powers, privileges, rights, duties or liabilities).

How this is done depends on the status of the new owner (legal person). It could be:

• Your RTO merging with another RTO to create a new entity: If so, you must apply for registration as the new entity with VETAB, be audited, and pay registration fees.
• Not an RTO: If so, it must apply for registration from VETAB, be audited, and pay registration fees.
• An existing RTO: If so, the RTO must apply to VETAB to amend its scope of registration to cover any additional accredited qualifications it wishes to deliver as a result of the purchase.

For a smooth transition

Where there has been a sale or transfer of an RTO, VETAB officers will endeavour to work with the new owner to achieve continuity for students, staff and scope of registration. So this can happen smoothly, you must provide VETAB with adequate written notice (at least one month) of the proposed changes. This can be sent to VETAB by email (vetab@det.nsw.edu.au) or by mail to VETAB, Locked Bag 21, Darlinghurst NSW 1300.