ASQA can cancel or suspend an RTO's registration where it considers the provider is no longer meeting its conditions of registration - whether that's a compliance failure, a financial viability concern, or a breach identified during audit. The consequences are immediate and severe: a suspended or cancelled RTO can't enrol or deliver training to students under that registration, which puts revenue, staff and existing students at risk in a single decision.
An RTO facing this kind of notice has a right of response before any final decision is made, and in many cases a right to seek a stay or injunctive relief to keep operating while the matter is contested. Acting quickly - and correctly - in that window is what determines whether a business survives the process.