The once Cash Cows of RTOs, are changing shape. The Australian Government has recently announced a number of changes to the Australian Apprenticeships Incentive Scheme. From June 30th there will be a reduction in incentives paid to employers for eligible existing worker trainees.
Right now (until 30 June this year) employers can receive up to $4,000 per trainee. After July 1st, this financial incentive drops to $3000 and no longer includes a commencement payment.
For you as an RTO there also are changes afoot, (as extracted from the government website):
The Government will discontinue the $1,500 standard employer commencement incentive payment and increase the standard completion incentive by $500 to $3,000 for existing worker apprentices in non‑National Skills Needs List (NSNL) occupations.
If you are planning on signing up trainees, then I recommend you start doing it now, whilst you can maximise your opportunities.
I see two actions from these changes that need to be done as a responsible RTO owner; review your cash flow/balance sheets and your income sources.
Remember as an RTO you should not be relying totally on one source of income, the changes made by the Government are typical of how one income source can change your balance sheet.
Sure, I agree your RTO will have its major sources of revenue, but I also recommend you have some minor ones as well. This way a few revenue streams will be growing, as others changes shape, and others may dry up to a slow trickle. As a business owner you need to be on the lookout for ways to expand the growing income sources. Here is a golden opportunity to do that right now. You might be surprised what comes out of it as often this might mean reviewing some of the smaller revenue generators and expanding them.
Be ruthless; whilst reviewing your cashflow remember to abandon the “Dogs” that take all of your time, but give little back in the way of hard cash. They are usually costing you far more than they are worth. Your time and money is better used elsewhere in the business. A successful RTO owner is always seeking new and exciting ways to add revenue to the business.