‘Dodgy brothers’ operators take over the training sector, prompting calls for tougher action

Shonks and scammers are taking over the training industry, offering worthless ‘qualification certificates’ for cash – see the full list of banned providers.

Dodgy shonks are continuing to tear apart the registered training industry, with insiders crying out for more to be done to shut down fraudsters ripping off students.

Despite recent regulatory action, ruthless registered training organisations (RTOs) continue to take thousands of dollars from students for worthless certificates, industry insiders say.

Another training college, DSA Ventures, trading as Australian Academy of Elite Education, has just been closed down by the regulator, the Australian Skills Quality Authority (ASQA).

Around 26,000 students have been affected by the cancellation of 15 fraudulent training providers since 2024, with sham providers and ghost colleges offering “cash for quals” in hundreds of courses.

Affected industries include childcare, construction, aged care and disability services, with students warned to be wary of “red flag” courses that offer no classes and no study.

Another 200 serious matters are under investigation by ASQA.

Despite the government pouring $1.5bn a year into free TAFE, 90 per cent of the training sector consists of more than 4000 private training providers.

TAFE numbers are declining while the private sector is growing rapidly, prompting calls for more to be spent urgently on regulation.

A screenshot of fake Australian diplomas for sale at the website Fakedocument.net – which can’t even spell “document” in its own header correctly.

‘Dodgy brothers have taken over’

One source with 25 years experience in the industry, who spoke on the condition of anonymity, said “dodgy brothers have taken over” the $11bn sector.

“Unscrupulous operators are everywhere. They are printing certificates for $99 each on working safety at heights or low-voltage rescues.”

He said the issue was “third-party providers like the one-man band operating underneath an RTO with no scrutiny”.

Despite extensive promotion of the deregistration of providers found to be rorting students, banned colleges continue to have web presences, glowing references and social media posts.

And even after being banned, individuals continue to use their worthless qualifications online to promote themselves on online sites used to outsource everyday tasks and find tradespeople for small jobs.

One closed company already has a new business name registered on its ASIC website.

Key areas of concern include recognition of prior knowledge – known as RPL – with colleges known as “RPL mills” selling qualifications without proper assessment or training.

Many students are from overseas, with a network of migration agents, labour hire organisations and training organisations colluding to mislead or exploit students.

Authorities are shutting down shonky training operators offering worthless 'qualifications' in a range of trades and careers to anyone who stumps up the cash.

‘Very dodgy company, do not trust’

One company threatened students with legal action when they complained about their $1500 certificates from a banned company, Arizona College, now being worthless.

One student paid $1500 for a Certificate IV in disability, but when they complained to the company, they were told they had to pay even more money to “fix” the problem.

“Don’t trust, very dodgy,” the student said. “It’s a scam, it’s unfair and people deserve to know the truth.”

One long-serving training auditor said the industry was “a bit like the NDIS – wherever there is government money, everyone is jumping in”.

She warned dodgy providers were “delivering half the product for half the price. It’s a race to the bottom. Who is going to pay $3000 for a cert IV that takes a year or $1000 for a month?”

“People want the dodgies gone, they are wrecking things for the rest of us,” she said.

“People are paying $5000 for qualifications they don’t do any work for. The industry is dying, it’s being pulled apart.”

RTO compliance consultant Arif Sarkar said “many people are the innocent victims of these dodgy providers”.

“The builder who now has no qualifications ends up with no insurance on the house he’s worked on. Who’s liable?”

Students from the now-banned Christa College taking certificate classes in childcare.

Under-resourcing of the regulator

Felix Pirie, CEO of the Independent Tertiary Education Council, said there was “no room for any non-genuine provider”.

He said ASQA was “under-resourced to fully engage across the sector” and “it’s very difficult for them to be fully across any provider or any type”.

Mr Pirie said ASQA, which operates on a cost-recovery basis, needed more government funding to operate more effectively.

The regulator was given $33m in 2023 to boost its powers by the federal government, but some argue it’s not enough.

Lyndal Ryan, acting president of the United Workers Union, said it was an “absolute outrage that unscrupulous and unsuitable registered training organisations are preying on workers and potential workers who are often vulnerable themselves – either being very young, unemployed or working on visas”.

“It will be a personal tragedy for many of these workers to have their qualifications cancelled because of appallingly lax standards in the privatised vocational education and training sector.”

Minister for Skills and Training Andrew Giles said the government had “strengthened integrity in the VET system, including the regulatory tools available to ASQA through our amendments to the NVETR Act”.

“The Albanese Government will keep working with agencies, and states and territories, to ensure integrity in the system – and we’ll continue to crack down on dodgy qualifications across the training sector.”

A student from the now-banned Christa College taking a certificate class in childcare.

Red flags

ASQA chief executive officer Saxon Rice said: “ASQA taking this kind of regulatory action is not unprecedented however the size and scale of our current actions are”.

“There is no place for any provider that seeks to exploit individuals,” Ms Rice said.

She said prospective students should be aware of people who offer courses with “no classes, no study, no exams, no time off work and a 100 per cent guarantee of success, with qualifications received in seven days”.

“Individuals should expect detailed and supportive engagement with providers,” Ms Rice said. “Be wary of anything that suggests you just need to submit a couple of documents and a CV is all that’s required.

“Another red flag is if you are unclear about who is undertaking what, if there are different brokers, different agents, third parties.

“If you can’t tell who you are dealing with or which organisation is offering the qualification, there’s an issue. If it’s too good to be true, it probably is.”

More information about deregistered RTOs and information for affected students can be found on the ASQA website.

ASQA recommends searching for a registered training provider or training course on Your Career.

Have you been scammed with a dodgy qualification? Email us at [e-mail]

Originally published as ‘Dodgy brothers’ operators take over the training sector, prompting calls for tougher action