diff --git a/changelogs/fragments/5563-rax-scaling-group-sanity.yml b/changelogs/fragments/5563-rax-scaling-group-sanity.yml
new file mode 100644
index 0000000000..310257f293
--- /dev/null
+++ b/changelogs/fragments/5563-rax-scaling-group-sanity.yml
@@ -0,0 +1,2 @@
+minor_changes:
+  - rax_scaling_group - refactored out code to the ``rax`` module utils to clear the sanity check (https://github.com/ansible-collections/community.general/pull/5563).
diff --git a/plugins/module_utils/rax.py b/plugins/module_utils/rax.py
index 2372088033..6331c0d1be 100644
--- a/plugins/module_utils/rax.py
+++ b/plugins/module_utils/rax.py
@@ -314,3 +314,21 @@ def setup_rax_module(module, rax_module, region_required=True):
                          (region, ','.join(rax_module.regions)))
 
     return rax_module
+
+
+def rax_scaling_group_personality_file(module, files):
+    if not files:
+        return []
+
+    results = []
+    for rpath, lpath in files.items():
+        lpath = os.path.expanduser(lpath)
+        try:
+            with open(lpath, 'r') as f:
+                results.append({
+                    'path': rpath,
+                    'contents': f.read(),
+                })
+        except Exception as e:
+            module.fail_json(msg='Failed to load %s: %s' % (lpath, str(e)))
+    return results
diff --git a/plugins/modules/rax_scaling_group.py b/plugins/modules/rax_scaling_group.py
index ef31cbb031..ed974ef0f9 100644
--- a/plugins/modules/rax_scaling_group.py
+++ b/plugins/modules/rax_scaling_group.py
@@ -161,8 +161,11 @@ except ImportError:
     HAS_PYRAX = False
 
 from ansible.module_utils.basic import AnsibleModule
-from ansible_collections.community.general.plugins.module_utils.rax import (rax_argument_spec, rax_find_image, rax_find_network,
-                                                                            rax_required_together, rax_to_dict, setup_rax_module)
+from ansible_collections.community.general.plugins.module_utils.rax import (
+    rax_argument_spec, rax_find_image, rax_find_network,
+    rax_required_together, rax_to_dict, setup_rax_module,
+    rax_scaling_group_personality_file,
+)
 from ansible.module_utils.six import string_types
 
 
@@ -223,19 +226,7 @@ def rax_asg(module, cooldown=300, disk_config=None, files=None, flavor=None,
                     del nic['net-id']
 
         # Handle the file contents
-        personality = []
-        if files:
-            for rpath in files.keys():
-                lpath = os.path.expanduser(files[rpath])
-                try:
-                    f = open(lpath, 'r')
-                    personality.append({
-                        'path': rpath,
-                        'contents': f.read()
-                    })
-                    f.close()
-                except Exception as e:
-                    module.fail_json(msg='Failed to load %s' % lpath)
+        personality = rax_scaling_group_personality_file(module, files)
 
         lbs = []
         if loadbalancers:
diff --git a/tests/sanity/ignore-2.11.txt b/tests/sanity/ignore-2.11.txt
index 2f6bf480c0..8ca3e163da 100644
--- a/tests/sanity/ignore-2.11.txt
+++ b/tests/sanity/ignore-2.11.txt
@@ -24,7 +24,6 @@ plugins/modules/puppet.py validate-modules:parameter-invalid  # invalid alias -
 plugins/modules/rax_files_objects.py use-argspec-type-path
 plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path # fix needed
-plugins/modules/rax_scaling_group.py use-argspec-type-path  # fix needed, expanduser() applied to dict values
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/scaleway_organization_info.py validate-modules:return-syntax-error
 plugins/modules/ssh_config.py use-argspec-type-path # Required since module uses other methods to specify path
diff --git a/tests/sanity/ignore-2.12.txt b/tests/sanity/ignore-2.12.txt
index 6499478916..9c1ccbf433 100644
--- a/tests/sanity/ignore-2.12.txt
+++ b/tests/sanity/ignore-2.12.txt
@@ -19,7 +19,6 @@ plugins/modules/puppet.py validate-modules:parameter-invalid  # invalid alias -
 plugins/modules/rax_files_objects.py use-argspec-type-path
 plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path # fix needed
-plugins/modules/rax_scaling_group.py use-argspec-type-path  # fix needed, expanduser() applied to dict values
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/scaleway_organization_info.py validate-modules:return-syntax-error
 plugins/modules/ssh_config.py use-argspec-type-path # Required since module uses other methods to specify path
diff --git a/tests/sanity/ignore-2.13.txt b/tests/sanity/ignore-2.13.txt
index 6499478916..9c1ccbf433 100644
--- a/tests/sanity/ignore-2.13.txt
+++ b/tests/sanity/ignore-2.13.txt
@@ -19,7 +19,6 @@ plugins/modules/puppet.py validate-modules:parameter-invalid  # invalid alias -
 plugins/modules/rax_files_objects.py use-argspec-type-path
 plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path # fix needed
-plugins/modules/rax_scaling_group.py use-argspec-type-path  # fix needed, expanduser() applied to dict values
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/scaleway_organization_info.py validate-modules:return-syntax-error
 plugins/modules/ssh_config.py use-argspec-type-path # Required since module uses other methods to specify path
diff --git a/tests/sanity/ignore-2.14.txt b/tests/sanity/ignore-2.14.txt
index ce92542bd1..edf15c5cfc 100644
--- a/tests/sanity/ignore-2.14.txt
+++ b/tests/sanity/ignore-2.14.txt
@@ -20,7 +20,6 @@ plugins/modules/puppet.py validate-modules:parameter-invalid  # invalid alias -
 plugins/modules/rax_files_objects.py use-argspec-type-path
 plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path # fix needed
-plugins/modules/rax_scaling_group.py use-argspec-type-path  # fix needed, expanduser() applied to dict values
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/scaleway_organization_info.py validate-modules:return-syntax-error
 plugins/modules/ssh_config.py use-argspec-type-path # Required since module uses other methods to specify path
diff --git a/tests/sanity/ignore-2.15.txt b/tests/sanity/ignore-2.15.txt
index ce92542bd1..edf15c5cfc 100644
--- a/tests/sanity/ignore-2.15.txt
+++ b/tests/sanity/ignore-2.15.txt
@@ -20,7 +20,6 @@ plugins/modules/puppet.py validate-modules:parameter-invalid  # invalid alias -
 plugins/modules/rax_files_objects.py use-argspec-type-path
 plugins/modules/rax_files.py validate-modules:parameter-state-invalid-choice
 plugins/modules/rax.py use-argspec-type-path # fix needed
-plugins/modules/rax_scaling_group.py use-argspec-type-path  # fix needed, expanduser() applied to dict values
 plugins/modules/rhevm.py validate-modules:parameter-state-invalid-choice
 plugins/modules/scaleway_organization_info.py validate-modules:return-syntax-error
 plugins/modules/ssh_config.py use-argspec-type-path # Required since module uses other methods to specify path