The Human Services Skills Organisation (HSSO) and the Coalition of Peaks launched More Than Training: The Role, Impact and Future of ACC and FNL/O RTOs at their RTO Community of Practice in Brisbane on 29 July 2026.

The report brings together findings from the First Nations RTO Sector Capability Analysis Project, commissioned by the Coalition of Peaks with the support of the Australian Government Department of Employment and Workplace Relations.

Its central finding is clear: the sector is delivering significant public value, but its capacity to sustain and expand that contribution is being constrained by funding arrangements that do not reflect the real cost of delivery.

A sector under financial pressure

The financial analysis found that 70 per cent of operating Aboriginal Community Controlled Registered Training Organisations (ACCRTOs) were either in deficit or breaking even.

At the same time, RTOs are absorbing significant unfunded costs associated with learner support, travel and remote delivery, cultural governance, community engagement, workforce shortages and regulatory compliance.

The report concludes that these financial pressures are structural. They reflect inadequate pricing, fragmented and short-term funding, thin training markets and funding models that do not recognise the support required to achieve successful outcomes.

Significant social and economic value

Despite these pressures, the Social Return on Investment analysis demonstrates the substantial value being generated.

The study estimates that every dollar of ACCRTO economic cost creates approximately $13.40 in social and economic value for students, employers, communities and governments.

The analysis also estimates that First Nations owned and led RTOs generate $9.40 in social and economic value for every dollar of economic cost.

These estimates do not capture the sector’s full contribution. A range of cultural, community and intergenerational outcomes could not readily be monetised.

A clear agenda for reform

The report sets out 14 recommendations to place the sector on a more sustainable footing and unlock its capacity to achieve greater impact.

Key recommendations include:

  • establishing a funding model that reflects the true cost of ACCRTO delivery;
  • introducing differentiated funding for cultural delivery, high-support cohorts, remote delivery and thin-market conditions;
  • funding wrap-around learner support as a core component of training;
  • providing stable, flexible and multi-year funding;
  • investing in sector capability, infrastructure, compliance and workforce development;
  • recognising ACCRTOs as a distinct provider category within the VET system;
  • developing a dedicated First Nations VET data strategy;
  • strengthening the Aboriginal teacher and trainer workforce; and
  • aligning training investment more closely with employment and community-controlled workforce demand.

The report makes clear that the primary constraint on ACCRTO impact is not capability or commitment. It is a system that continues to fund and assess these organisations using assumptions that do not reflect how they operate or the outcomes they achieve.

A more sustainable approach would enable ACCRTOs and community-connected First Nations owned and led RTOs to plan for the long term, retain skilled staff, strengthen delivery capability and support more Aboriginal and Torres Strait Islander learners into education and employment. Unlocking the full potential of the community-controlled RTO sector is key to accelerating progress on Closing the Gap.

Read and download More Than Training: The Role, Impact and Future of ACCRTOs and FNL/O RTOs.