Education and training industry

How businesses operate

Most businesses in this industry earn income from student fees, employer contracts and government funding.

Businesses teach students one-on-one or in groups:

• online
• in person
• a mix of both.

Some businesses get students from direct enrolments, while others teach students from community groups, employers or schools.

Many businesses hire staff to teach students and manage daily operations. Some businesses do this work themselves, such as sole trader tutors.

Demand and competition

People's learning needs influence demand for education and training. For example, some people want skills or qualifications to help them find a job or change careers. Others want classes for personal interest, such as sports or art classes.

Many businesses in this industry are busiest during school terms, before exams, during school holidays or at the start of training programs. These busy periods can increase demand for staff, resources and class places.

Reviews and word-of-mouth recommendations can influence a student’s choice of provider. As a result, businesses often compete on the quality of their teaching and the results their students achieve.

Digital tools

Many businesses in this industry use digital tools to manage day-to-day tasks and meet reporting obligations. Digital tools can save time, but they can also introduce new risks like cyber threats.

Common tools include:

• learning management systems to deliver lessons, assessments and learning resources
• student management systems to manage student records, such as enrolments and attendance data
• messaging systems to communicate information to students, parents, carers or employers
• scheduling systems for class timetables and meetings.

Risks and challenges

Common challenges include:

• maintaining teaching, training and assessment standards
• attracting students in a competitive market
• finding and keeping qualified teachers, trainers and educators
• meeting industry standards and reporting rules.

These challenges can affect student outcomes, business costs and day-to-day operations.

Knowing which business risks affect you can help you plan and make better business decisions.

Industry statistics

Data can help you understand how businesses in this industry perform and how your business compares.

You can:

• explore annual estimates of industry income, costs, profit and capital expenditure at the Australian Bureau of Statistics
• compare your business's performance against similar ones using the Australian Taxation Office's small business benchmarks
• get the latest job market trends and insights at Jobs and Skills Australia
• find VET research and data at the National Centre for Vocational Education Research.

These are some laws you may need to follow:

• Competition and fair trading laws are set out in the Competition and Consumer Act 2010.
• Rules about pricing, refunds, contracts and advertising are set out in Australian Consumer Law (ACL).
• The Privacy Act 1988 may apply if you collect personal details, such as student names or contact details.
• Registered training organisations (RTOs) must comply with the VET Quality Framework laws.
• Businesses that enrol overseas students must follow the Education Services for Overseas Students (ESOS) Framework laws.
• You must collect and report the unique student identifier (USI) numbers of some students.
• Disability laws give students with disability the same learning opportunities as other students.
• State, territory and federal child safety laws may apply if your business works with children or young people.
• Copyright laws apply if you use, copy or share copyrighted material, such as images, text, music and films.

Some education businesses must follow rules for course content and teaching methods. For example:

• preschools and kindergartens must teach children using an approved learning framework
• VET courses must use approved training packages
• English language courses for students from overseas must meet the ELICOS Standards.

Accredited courses can lead to a nationally recognised qualification or statement of attainment. For example, a Certificate I or Diploma. These courses must meet the Australian Qualifications Framework (AQF).

Non-accredited courses don’t lead to a recognised qualification. Businesses offering non-accredited training can write their own course content. They must not use AQF qualification titles to name their courses.

Federal, state, territory and local governments manage the licences and permits for the education and training industry.

You may need a licence or permit to:

• open a preschool or kindergarten
• run an RTO
• enrol overseas students to study in Australia
• use copyrighted materials for education purposes
• run a tutoring business from home.

Your tax obligations depend on your business structure, the services you offer and the staff you hire.

Some education and training is exempt from goods and services tax (GST). This includes some:

• job skills courses run by adult and community education (ACE) providers
• courses and study materials for non-resident students
• aquatic survival skills, such as lifesaving training.

If you hire teachers, trainers or coaches, check if they are employees or contractors. This can affect your tax and super obligations.

Understanding your tax obligations can help you avoid common mistakes.

Businesses in this industry often employ a mix of teaching and support staff. Different awards may apply depending on the role, place of learning and the work performed. Check award summaries on the Fair Work website to see which award applies to your employees.

Make sure you know which workplace laws you need to follow before you create an employment contract or hire contractors.

Child safety

Some staff need to meet child safety requirements before they can work with children and young people. For example:

• pre-employment screening checks, including for tutors, coaches and other instructors
• child safety training for all staff working in an early childhood education business.

Qualifications and registrations

Some employees may need certain qualifications, credentials or registrations before they can work in that role. For example, early childhood teachers and RTO trainers and assessors.

Under work health and safety (WHS) laws, businesses must take reasonable steps to keep students, workers and the public safe. This includes volunteers.

WHS hazards in this industry can include:

• violence and aggression towards staff from students, parents, carers or clients
• working alone or in a student’s home without immediate access to help. This may be a hazard for educators such as tutors, coaches and driving instructors
• physical injuries during practical lessons, such as dance, swimming or driver training.