In a sweeping move to restore integrity to Australia’s vocational education and training (VET) sector, the Australian Skills Quality Authority (ASQA) has revoked an estimated 10,700 that were linked to early childhood education and care in late 2024. Providers like Luvium Pty Ltd and Gills College were found to have issued credentials without proper training or assessment.
While the crackdown was aimed at eliminating fraudulent credentials, the aftermath has exposed a troubling gap in transparency, communication, and student support.
Providers and Childcare-Related Cancellations
- Luvium Pty Ltd: 7,360 qualifications cancelled—included early childhood education, individual support, and community services.
- Gills College: 3,364 qualifications cancelled—also included early childhood education and care.
While not every qualification from these providers was childcare-specific, both were major issuers of early childhood credentials. Based on provider focus and course offerings, it’s estimated that nearly half of the total revoked qualifications were in the childcare and community services sectors.
Issues Identified
- Low student engagement: Only 1 in 5 affected students responded to ASQA’s notices, often due to language barriers, fear of visa implications, or lack of awareness.
- Lack of support pathways: Many students—especially international—were left with invalid credentials, financial losses, and no clear requalification options.
- Sector disruption: Employers faced uncertainty verifying staff credentials, and services risked non-compliance with staffing requirements under the National Quality Framework (NQF).
A Deafening Silence: Only 20% Responded
ASQA issued Notices of Intent to Cancel to thousands of former students—many of them international—whose qualifications were deemed invalid due to non-compliant training providers. Yet, only about 20% of affected students responded to these notices. The remaining 80% lost their qualifications by default.
This low response rate raises urgent questions:
- Were students adequately informed of their rights and options?
- Did language barriers, visa fears, or lack of regulatory literacy prevent them from responding?
- Was the seven-day response window realistic for vulnerable learners navigating complex systems?
Real Lives, Real Losses
For many students, the revoked qualifications weren’t just pieces of paper—they were pathways to employment, migration, and stability. The cancellations have left thousands with:
- Invalid credentials that can’t be used for work or further study
- Financial losses from tuition fees, living expenses, and lost job opportunities
- Uncertain career paths, especially for those in sectors like early childhood education, aged care, and disability support
Some students now face visa complications, while others are being asked to repay debts for qualifications that no longer exist.
A System in Need of Reform
While ASQA’s actions were necessary to protect public safety, the fallout reveals systemic weaknesses:
- Inaccessible appeals processes with low success rates
- Lack of re-enrolment pathways or compensation for affected students
- Minimal employer guidance, leaving workplaces unsure how to verify staff credentials
The silence from students wasn’t apathy—it was a symptom of a system that failed to meet them where they were.
The Business of Fast-Tracking
At the heart of the issue are for-profit education providers exploiting loopholes in the vocational education system. Southern Cross University’s 10-month diploma program, for instance, enrolled over 6,000 students and generated $150 million in fees. Whistleblowers described it as a “cash cow,” with pressure to pass students regardless of competence.
Many of these students—often international—are lured by the promise of permanent residency. But instead of receiving robust, hands-on training, they’re pushed through online modules and sent to placements in underperforming centres, some rated “significant improvement required.”
What Needs to Change
This is not just a compliance issue—it’s a moral imperative. Children deserve educators who are competent, compassionate, and committed. To restore trust and quality in the sector, we must:
- Strengthen training pathways: Extend course durations, embed trauma-informed and safeguarding content, and mandate supervised placements in high-quality centres.
- Tighten regulation: Enforce stricter audits of training providers, revoke fraudulent certificates swiftly, and ensure placement centres meet safety standards.
- Invest in mentorship and reflective practice: Pair new educators with experienced leaders and embed critical thinking into daily routines.
- Elevate educator voice: Involve frontline educators in curriculum design, policy reform, and quality assurance processes.
Further Reading
Fraudulent and Improper Qualifications In Childcare
Australian Skills Quality Authority Cancels Qualifications
Reference:
Statement Of Regulatory Action