Brisbane-based ECEC-focused RTO placed into liquidation leaving students scrambling

Inspire Education was one of Australia’s leading providers of nationally-accredited and nationally-recognised training and qualifications for over 13 years, with a strong presence in the early childhood education and care (ECEC) sector. 

The Brisbane company went into liquidation on Wednesday owing creditors more than $2 million.While staff have had redundancies and entitlements paid, students – many of whom were studying qualifications for sectors in desperate need of workers – have been left in the dark. 

“Inspire Education has taken down their student hub,” one ECEC student shared, “and the page has been replaced with the liquidator’s letter.” 

“In many cases, our unit results have not been uploaded to the USI system, nor is there anyone left working at Inspire to do this on our behalf. A lot of us were studying the soon to be superseded Cert III and Diploma, and had a deadline to have work completed.”

Without having results in the USI system, students have no way of proving their competencies to another RTO and gaining recognition of prior learning (RPL) for the work they have already completed. 

“At this stage, I can’t see myself continuing with another RTO unless I am granted RPL. It’s just not financially viable,” the student said. 

Her story is just one of the 13,000 that students from Inspire had to share. 40 staff were also impacted by the sudden closure. The creditors are primarily online marketing and advertising businesses who are owed about $1.2 million.

A statement on the company’s website notes that courses have been “halted” and that the provider is “exploring if another RTO is interested in taking over the provision of services”.

“We appreciate this is a concerning time for you, however we ask that you please allow us time to explore available options to assist regarding the company’s training courses and all students,” the statement reads.

“We have received a substantial number of emails from students already. Please note that we will not be able to answer individual questions at this time, however regular communication updates and FAQs will be made by Worrells over the coming weeks.”

The Australian Securities and Investments Commission (ASIC) confirmed via a statement that a liquidator (Lee Crosthwaite from Worrells) had officially been appointed during a meeting held on 12 October. 

A statement from the liquidator said Inspire Education owes an online marketing and advertising business approximately $1.2 million (representing the last three months only), a Philippines-based services company approximately $558,000, related entities and loans totalling $535,000, and a relatively small number of ongoing current account trade suppliers.

“It’s an incredible shame,” Mr Crosthwaite said in a statement.

“We’ve got a dedicated team to assist the students, who are understandably in a distressing position and who largely paid their fees on an up-front basis.” 

He will now obtain all relevant information to assess the company’s liability in respect of course refunds.

“We have also engaged a broker to assist with numerous expressions of interest and we ask for a short period of time while we swiftly explore those options,” he added.

A detailed report to creditors is likely to be issued on or before January next year and would “provide further guidance on the likelihood of a dividend for students and creditors”.

To access the notice to students provided by Worrells, please see here. Students who have been impacted by the closure should refer to ASQA’s guide to provider closures which gives advice on continuing studies when a provider ceases operating.

Inspire students who have questions about fees or refunds should contact the liquidator directly using the information provided by Worrells which appears below. 

Office Name: Brisbane

Contact person: Aaron Cox

Phone: (07) 3050 1932

E-mail: [email protected]

For any queries not relating to course refund claims, Statements of Attainment, or matters otherwise covered on Worrells File Info page, please email [email protected]