Updates on VRQA requirements for Victorian Independent Schools

Vishnu Kamath
April 24, 2026

Is Your School Ready for the VRQA Business Plan Validation Requirement?

For independent schools in Victoria, compliance with the Victorian Registration and Qualifications Authority (VRQA) requirements is more than a regulatory exercise, it is a critical part of demonstrating sound governance, financial viability and readiness for registration or review.

One of the key requirements under the VRQA Guidelines to the Minimum Standards and Requirements for School Registration is that a non-government school must have a business plan validated by an independent qualified accountant. The business plan must include enrolment estimates and assumptions, the school’s Direct Measure of Income (DMI) score or equivalent where applicable, estimated State and Commonwealth grant funding, and 5-year financial forecasts. The accountant must be independent and provide a signed statement confirming the reasonableness of the business plan and validating the underlying assumptions.

Why this matters

This is not just a formality. The business plan sits within the broader VRQA governance requirements, which are designed to ensure that a school is structured to effectively manage its finances, plan strategically and fulfil its legal obligations. In practice, this means the business plan needs to be robust, well-supported and capable of standing up to independent scrutiny.

For many schools, this can be a challenging requirement. Forecasts need to be more than aspirational. Assumptions around enrolments, funding, staffing and operating costs need to be realistic, supportable and internally consistent. Any weaknesses in the underlying data or logic can lead to delays, additional questions, or unnecessary pressure during the review process.

What schools should be prepared for to meet the requirement effectively, schools should expect their business plan and forecasts to be reviewed with a focus on matters such as:

  • whether all mandatory VRQA elements have been addressed
  • whether enrolment assumptions are reasonable and supported
  • whether grant funding estimates are appropriately calculated
  • whether the forecast model is mathematically accurate and internally consistent
  • whether key cost assumptions such as staffing and operating expenditure are realistic
  • whether the overall plan demonstrates financial sustainability over the forecast period.

This process requires careful preparation, sound documentation and clear supporting evidence.

Why engaging the right accountant matters

Because the accountant is required to issue a signed statement, this engagement involves significant professional judgement. It also carries a level of professional risk, particularly where the statement may be relied upon by the VRQA as part of its review or registration process.

That is why it is important to work with a team that understands both the technical expectations and the practical realities of the education sector.

An experienced advisor can help you:

  • identify gaps in your business plan before submission
  • challenge and strengthen assumptions
  • improve the quality and credibility of your forecasts
  • reduce the risk of avoidable issues during the VRQA process
  • provide confidence that your documentation is fit for purpose.
How we can help

We work with schools to help them navigate the practical and financial aspects of regulatory compliance with confidence.

Our team can assist with:

  • reviewing your draft business plan against VRQA requirements
  • assessing the reasonableness of key assumptions
  • reviewing 5-year financial forecasts and cash flow projections
  • identifying areas that may require further support or refinement
  • providing the independent accountant validation statement where appropriate.

We understand that every school is different. Whether you are preparing for a new registration, a change to registration, or a VRQA review, we can tailor our approach to suit your circumstances and timeline.

Don’t leave it to the last minute

The earlier this requirement is addressed, the easier it is to resolve issues before they become roadblocks. A proactive review can save time, reduce stress and help ensure your submission is supported by a business plan that is clear, credible and compliant.

There are numerous changes as outlined in the latest guidelines which can be found on the VRQA website.

If your school needs assistance with the VRQA business plan validation requirement, contact our team today.

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