How Much Does It Really Cost to Set Up Your Own Registered Training Organisation (RTO)?
If you’re planning to become an RTO owner, one of the first questions you’ll likely ask is:
“How much does it cost to start an RTO?”
To be honest, you can’t expect a simple answer like “$50,000” — because there are many factors involved. Setting up an RTO is a complex process, and the costs can vary significantly depending on your goals, structure, and resources.
Understanding every financial aspect of RTO setup is critical — not only to ensure compliance but also to make your business financially sustainable in the long run. Whether you’re a first-time RTO owner or a seasoned industry professional, proper planning and budgeting are essential.
Taking the time to map out all expected costs and resources before launching your RTO is one of the smartest investments you can make. The more prepared you are before spending a single dollar, the greater your chances of building a successful and compliant RTO from day one.
Key Areas to Research Before Starting Your RTO
Here are the major areas you need to analyse before setting up your RTO:
- Training products/courses and services
- Mode of delivery
- Consulting and registration fees
- Accounting fees
- Trainers and assessors
- Facilities and equipment
- Student management system
I. Training Products / Courses Offered / Services
Your chosen training products and services will have the biggest influence on your setup budget.
Most RTO owners select courses based on their background, skills, or passion — which is perfectly fine. However, every choice should still undergo objective market and feasibility analysis.
Remember: training cognitive (theoretical) skills generally costs less than delivering practical (hands-on) training.
For example, an RTO offering business administration courses may only need a classroom with whiteboards and computers.
In contrast, an RTO offering carpentry or automotive training will need a large practical workshop, specialised tools, and safety equipment — which drastically increases costs.
Steps to take:
- Conduct Market Analysis
- Check job demand and growth using Job Outlook.
- Identify regional and national employment trends.
- Determine target learners, employers, and licensing requirements.
- Identify Your Training Products
- Use training.gov.au to find current, nationally recognised qualifications.
- Avoid expired or non-current courses.
- Start small — offer a few well-researched, in-demand courses before expanding your scope.
- Perform Competitor Analysis
- Identify which RTOs are already delivering similar courses.
- Compare delivery methods, pricing, funding, and marketing strategies.
- Find market gaps you can fill to differentiate your RTO.
II. Mode of Delivery
Your mode of delivery directly affects your RTO’s setup cost. The three main models are:
- Online Delivery – Includes LMS-based learning, video conferencing, and digital training.
While it reduces some costs, it requires investment in an LMS, content development, hosting, and technical support. - Classroom Delivery – Involves physical training spaces and equipment.
It’s often more expensive but ideal for practical, hands-on learning. - Blended Delivery – A mix of online and classroom learning.
This is the most common and flexible model for modern RTOs.
Each delivery mode requires its own setup costs — from hardware and software to facilities and trainers. A solid business plan helps determine which mode is most viable for your goals.
III. Consulting Fees & Annual Registration Fee
Establishing an RTO is a complex process. Many owners choose to work with professional consultants — such as ACOFE CONSULTANTS – RTO & CRICOS Services — to streamline the process and avoid costly mistakes.
On average, RTO consulting services can cost around $25,000, depending on the level of support required.
If you plan to handle most of the work yourself, consulting costs may be lower — but the risk of errors increases.
The annual registration fee, charged by ASQA, helps fund regulatory activities such as maintaining provider records, risk assessments, and public information services.
You can read more about ASQA’s fees and charges on the ASQA website.
IV. Accounting Fees
Many new RTO owners overlook the cost of hiring a qualified accountant to conduct a Financial Viability Risk Assessment (FVRA).
Accounting fees can range from $1,200 to $12,000, depending on the complexity of your business plan and financial model.
To save costs, prepare a detailed business plan and realistic financial forecast before engaging an accountant.
Ensure your projected student numbers, trainer capacity, and resources align with your overall business strategy — inconsistencies can lead to application rejection.
V. Trainers and Assessors
Trainers are one of your biggest ongoing costs.
Most RTOs hire trainers as contractors, with daily rates averaging $400–$600, or around $1,500 per week.
A common approach for new RTOs is to recruit trainers on a provisional basis — confirming their engagement only after registration is approved. This strategy reduces financial risk while still demonstrating your RTO’s readiness.
Be specific in your job advertisements about qualifications, experience, and skills to attract the right candidates.
VI. Facilities and Equipment
When setting up your RTO, avoid locking into long-term leases early on. Instead, consider flexible or short-term arrangements for training facilities and equipment.
Your facilities must align with your training products. For example, aged care courses require a realistic simulated workplace environment. Without the right setup, your application could be rejected.
Detailed planning is essential to ensure your physical and operational resources meet ASQA’s standards.
VII. Student Management System (SMS)
All RTOs must use an AVETMISS-compliant Student Management System to record and report training outcomes.
New RTOs can use free AVETMISS tools initially, though investing in a proper SMS is highly recommended as the business grows.
Before purchasing, compare system capabilities, pricing, and customer support.
If possible, delay purchase until just before your application submission — there’s no point paying for unused software early on.
Final Thoughts
Setting up an RTO in Australia is a significant financial and administrative commitment — but with the right planning, guidance, and strategy, it can be a rewarding and profitable venture.
At ACOFE CONSULTANTS – RTO & CRICOS Services, we specialise in helping new and existing RTOs successfully navigate the registration and compliance process. Our expert team offers tailored support — from business planning to audit preparation — ensuring your RTO starts strong and remains compliant.
It may seem daunting at first, but with ACOFE CONSULTANTS – RTO & CRICOS Services by your side, starting your RTO can truly be as easy as ABC!
