What is an approved provider?

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A provider approved under the Family Assistance Law provides child care in one or more of its services and receives and passes on Child Care Subsidy payments to eligible families to reduce the cost of child care.

A provider approved under Family Assistance Law is responsible for satisfying obligations under both Commonwealth and state and territory laws. This includes obligations to:

  • comply with Family Assistance Law
  • comply with the National Law and National Regulations and all related state or territory laws involving the operation of a child care service, unless that service is exempt (see Appendix C)
  • ensure the child care provider and relevant personnel (that is, persons with management or control of the provider and persons responsible for the day-to-day operations of the service) are fit and proper persons to have a role in the receiving and passing on of Child Care Subsidy payments (see Who needs to be a fit and proper person?)
  • ensure that background checks, including criminal history and working with children checks, are carried out for relevant staff and educators (see What matters should be considered?).

When determining whether a person is a fit and proper person to be involved in the administration of the Child Care Subsidy and the Additional Child Care Subsidy, matters involving fraud, dishonesty, financial management, compliance with the law and administration of funds are all relevant considerations. Matters considered in determining whether someone is a fit and proper person include:

  • evidence of activity that does not comply with criminal or civil law, including (but not limited to) activity related to children or indicating dishonesty or violence
  • court proceedings and convictions or findings of guilt, including (but not limited to) activity related to children or indicating dishonesty or violence
  • any past administrative decisions relating to a person’s suitability to be involved in child care
  • evidence of fraud or dishonesty
  • the person’s history of managing public funds; and any past or current debts to the Commonwealth
  • the person’s record of financial management, including any instances of bankruptcy, insolvency or external administration
  • any potential conflicts of interest between managing or delivering the child care service and other business or financial interests of the person
  • any other matter relevant to the suitability of the provider and their staff.

Specified personnel must be fit and proper persons, regardless of whether they are required to use the Child Care Subsidy System.

Where a provider does not comply with their obligations under Family Assistance Law, sanctions may be imposed. See Appendix E for more information on the conditions for continued approval and the consequences of a breach of those conditions.