61. Compliance action against providers

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Actions that could be taken against you for failing to meet obligations under the Act and the Rules include:

  • the Secretary may determine not to pay a loan amount for your student(s)
  • conditions being placed on your VSL approval
  • compliance notice being issued
  • suspension or revocation of your approval
  • issuing an infringement notice where there is a reasonable belief that your organisation has contravened a civil penalty provision
  • the imposition of a civil penalty by a court, where your organisation has contravened a civil penalty provision.

61.1 - Civil penalties and criminal offences

The Act includes several civil penalties provisions for contravention of certain requirements. For example, you may face penalties concerning:

  • failing to have processes and procedures in place
  • failing to cooperate with the department or ASQA
  • failing to provide information under the Act and the Rules
  • specific provisions in relation to census days, fees, tuition protection, marketing and electronic communications.

The penalties range from:

  • 60 penalty units to 240 penalty units for individuals ($19,800–$79,200)
  • 300 penalty units to 1200 penalty units ($99,000–$396,000) for corporations.

The current value of a penalty unit can be found on Fines and penalties | ASIC.

On 1 July 2026, the value of one penalty unit will be indexed based on the formula in section 4AA of the Crimes Act 1914.

As well as incurring penalties, your failure to meet certain obligations could amount to the commission of a criminal offence. The Act provides for several strict liability offences. This means it does not matter that you did not intend to commit the offence - it is enough that you engaged in the prohibited conduct. The Act provides a maximum fine payable for these offences. Contravention of certain requirements (specifically in relation to the misuse of personal information) may result in imprisonment for up to 2 years.

A summary of the civil penalties and criminal offences under the Act is at Appendix R - Civil penalties and criminal offences.

61.2 - Personal liability for executive officers

Executive officers of an approved course provider may be found personally liable for the actions of the provider. An executive officer of an approved course provider commits an offence if:

  • your organisation commits an offence against this Act, and
  • the officer knew the offence would be committed, and
  • the officer was in a position to influence the conduct of your organisation in relation to the commission of the offence, and
  • the officer failed to take all reasonable steps to prevent the commission of the offence.

Where an executive officer is found personally liable, the maximum penalty for an offence is one-fifth of the maximum penalty that could be imposed for the offence committed by your organisation. This means that, if your organisation would be subject to 60 penalty units, the executive officer would be subject to a maximum of 12 penalty units.

An executive officer of an approved course provider contravenes subsection 65(3) of the Act if:

  • your organisation contravenes a civil penalty provision of the Act, and
  • the officer knew the contravention would occur, and
  • the officer was in a position to influence the conduct of your organisation in relation to the contravention, and
  • the officer failed to take all reasonable steps to prevent the contravention.

The maximum civil penalty for a contravention of subsection 65(3) is one-fifth of the maximum penalty that could be imposed for the contravention of the civil penalty provision by your organisation.

Reasonable steps to prevent offence or contravention

In determining whether an executive officer failed to take all reasonable steps to prevent the commission of an offence, or the contravention of a civil penalty provision, a court is to have regard to (among other things):

  • what action (if any) the officer took towards ensuring your organisation’s employees, agents and contractors had a reasonable knowledge and understanding of the requirements to comply with the Act, in so far as those requirements affected the employees, agents or contractors concerned, and
  • what action (if any) the officer took when he or she became aware of the offence or contravention.

Legislation: Act s 20(f), s 34, s 36, s 43, s 65 (1) and (3)