http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/AATA/2020/...

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Thorium1

163 Posts.

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04/12/20

14:52

Post #: 49351057
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Originally posted by LabSuper: ↑

Hi Thorium1, were you able to view/link the recent AAT decision? I haven't been able to find it.

As to your question, I'd guess so. They'll need to find another business line quickly, be that property investing or other to survive.

One option might be to attempt non-accredited training, but that wont attract any Government funding support that has been part of the current business model. Issues would be if they could build/have a FFS product that is good enough to stand on its own feet without accreditation or funding, but that would then be quite vulnerable to (funded) competition from any new player with a clean record.

I'd imagine they would currently be needing to immediately notifying any Government or similar funding contract owners for those they currently hold such as in QLD, NT, CTF(WA) etc... the contracts are usually very explicit regarding these types of events, and could even (potentially) involve further clawback type arrangements if they aren't onto it.

Honestly wouldn't be surprised if some sort of private equity players weren't sniffing around already to look at their IP/equipment - they seem to have a niche in an industry with limited competition that in new (compliant) hands could be profitable.

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http://www.austlii.edu.au/cgi-bin/viewdoc/au/cases/cth/AATA/2020/4805.html

I am not sure they have a niche. All they did is try and consolidate a number of providers and reduce costs. Unfortunately that impacts quality and here we are. I suspect the Director resignation might be part of some sort of legal approach arguing that the person who was found to be not a "fit and proper person" is no longer involved.

Given the damning remarks regarding Vet Fee help, it doesn't bode well for Site in their case against the ACCC.

It may not be the end quite yet, but it's not looking good.

SIT Price at posting: 2.2¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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