Existing Approved Providers can still be required to sit/re-sit the fit and proper test, ACA NSW warns

by Freya Lucas

April 13, 2021

The New South Wales branch of the Australian Childcare Alliance (ACA) has issued a series of recommendations for Approved Providers after it learnt that the NSW Department of Education had contacted approved providers to provide lists of persons with management or control. 


ACA NSW had previously issued clarification to its members around directors or partners of companies or partnerships who are not necessarily persons with management or control.


“As there are a number of Approved Providers who were already Approved Providers (aka licensees) prior to 1 January 2012, some of these Approved Providers (who have been recently asked to provide their list of persons with Management or Control) gave the NSW Department of Education with their complete list of directors or partners without differentiating who are persons with Management or Control, and who are simply Contacts,” ACA NSW said.


Under the National Law’s Section 12 and Section 21, the NSW Department of Education has the right and power to continually reassess any Approved Provider’s suitability as fit-and-proper person(s).


“Just because Approved Providers were Approved Providers already, it does not always automatically guarantee Approved Providers will always be fit-and-proper person(s) in the future,” ACA NSW clarified.


“Hence, the NSW Department of Education can and will require individuals to sit/re-sit-the-test if it has concerns about individual(s)’ ability to be fit-and-proper persons.”


ACA NSW strongly recommend Approved Providers to:


  1. ensure that they have a list of persons with Management or Control that is separate from the list of persons who are deemed Contacts;
  2. consider removing directorships from individuals (who can still continue to be shareholders) and ensure directorships are only persons with Management or Control; and,
  3. consider training individuals to become future directors and persons with Management or Control for the purposes of risk management and succession planning.


ACA NSW members needing further information or clarification are invited to contact ACA NSW on 1300 556 330 or nsw@childcarealliance.org.au